The huge paychecks that real estate agents can earn in one deal has basically become an urban legend.
This is aided by the reality tv shows where the agents live lavish lifestyles and earn well into the six-figure range per deal by selling million dollar homes.
Well, the reality is most agents struggle in the “rat race” as it’s called just to make ends meet.
Here’s why some eventually choose to leave the property sales scene behind for management’s greener pastures:
1. They can’t sell.
Selling real estate is much less of an art than it is a science.
Experienced agents know why properties will sell and can predict trends.
They know which houses to list and why they’ll move quickly.
It takes years of experience to obtain this skill that why many stop trying and decide to go another route in real estate.
Ironically home owners make the same decision after they can’t sell a property for some time eventually they decide to rent it. Agents apparently think the same way, “cant sell em rent em.”
2. Diva buyers.
Extremely finicky and persnickety buyers can be a huge pain not only for sellers but also for the buyer’s agent who has to put up with their endless demands and outright bizarre behavior.
Some agents after having enough of dealing with buyers who change their minds at the last minute and nix closings decide they’ll come out better managing property instead.
3. Regular paycheck
Real estate is cyclical in nature and there are times when the market swings back and forth from a buyer’s market to a seller’s playground.
In the middle of the transition it can be feast of famine for an agent.
Many of whom get tired of waiting yet another month or two to get paid and instead are drawn to the idea of receiving monthly commission from managing property.
Ultimately this can be a much smarter move as each management contract pays the agent monthly and over time this compounds and as long as the property is well maintained the chances of the owner firing the property manager is low.