I have a good friend who is looking to change carriers. One of the possible interests for him is to enter the real estate industry as a REA. He is close to 45, currently in a managing role in the social services with diploma level qualifications in marketing and management and years of experience dealing with all kinds of customers. He is at a crossroad and is looking to start something that would give him ok earnings and personal satisfaction. I am trying to help him in any way I can and know.
I’d like to hear from a real estate agent on this forum, is it a really crazy idea to try to enter real estate at 45? And are formal qualifications necessary?
Becoming a Real Estate Agent at The Age of 45
loropy9 on 10/08/2019 - 10:38
Last edited 10/08/2019 - 10:50 by 1 other user
Last edited 10/08/2019 - 10:50 by 1 other user
Comments
This. My nephew’s new MIL was a real estate agent. She gave it up because the lying, manipulative etc got too much for her.
She had been sleeping poorly for about half a decade. After giving it up and going in secretary/pa work she says her sleep has never been better and she feels better about herself and her work.
I am bit naive in this area, why is, Leasing a high yield investment vehicle recommended?
He'll need to be self-sufficient for a year or so. Most REA's get a fairly low base wage, and commissions don't get paid until settlement
They're basically shit kickers for a year.
I thought you had to start as a property manager and work your way up to the sales side.
I think he'd need to pass some kind of licence/test to enable registration to the state-based "institute". My experience with REAs indicates that a fairly dim chimp with a pencil could pass.
If being a real estate agent wasn't an option, we'd have a full defence force and far more homeless and dole recipients.
Tell him to become an electrician.
Yes, tell a 45 yo guy to undertake a 4 year apprenticeship on $500 a week. Thats awesome advice.
My mate did it at 42. How much do you think a 45yo real estate agent with no experience in the industry is going to earn when starting out? I don't think it would be a good time to enter this industry, unless you've been reading different news articles to the rest of Australia.
Great the old 'my mate did' story as a way of taking one example and trying to generalise it to every middle aged dude looking for a career. If you read what I posted I didn't encourage entry into the industry either but becoming a electrician is not a silver bullet either.
@Icecold5000: So I'm only one mate short of not generalising? Because apparently your advice is all the more credible because you "know a couple of agents", who have a proclivity towards drugs and prostitutes?
You didn't encourage anything at all in your post so feel free to add some suggestions for the OP's mate. Once you've gone though all the posts and weeded out all the non-silver bullets and non-specific, unsubstantiated advice, of course.
@Some Guy: The funny thing is I’ve worked in corporate property for a number of years so I actually do know what it takes to be a sucessful agent where you had a mate who became an sparky. So tell us again how this qualifies you to offer advice on a career change that you appear to be utterly unqualified to give?
@Icecold5000: So you're not an electrician? If we're playing that banal pissing game, why are you qualified to discount that as possible career change for the OP's mate? Your "qualifications" don't seem to result in any better or more useful information posted by others, who are almost certainly not REA's, right above your nugget of wisdom.
@Some Guy: The OPs friend hasn’t expressed any interest in becoming an electrician. What part of that don’t you understand? It’s just something you threw out there knowing nothing about this guy’s capacity to do physical work being middle aged or financial committments. He could have a family and mortgage to pay for so good luck on being apprentice wages for years. The thing about advice is that it has to come from someone who knows something. Given I has worked with agents in a professional capacity and managed multiple transactions with them this qualifies me. You are utterly unqualified to issue life changing advice because you have no first hand knowledge. Why don’t you tell us how to become a millionaire because someone with a Bentley parked next to you.
@Icecold5000: The OP says his mate is looking to "start something that would give him ok earnings and personal satisfaction". Last time I checked, an electrician was something and because a similar transition was successful in terms of earnings and satisfaction for my mate, I am someone who knows something. That is no different to your assertion that agents and property managers make shitloads of money and enjoy whores and drugs. You're right about one thing though. It is just something that I threw out there, much like several other posters, to offer an alternative because becoming a REA appears to be a reviled choice. OP is free to do what he likes with the suggestion. So I'm guilty of being off-topic, hardly the Lone Ranger there and thanks for being the arbiter of the internet, but that's better than being a hypocrite.
@Some Guy: You’re just giving out bad information to people. It’s not good advice at all. If you think all agent are into coke and hookers then you’re gullible. Not everyone can be a good agent without certain character traits because it’s not a job but a business. Those motivations were identified by the OP. You’re basing your opinion on virtually nothing more than what a mate did. Being an agent is probably better for him because the training barriers to entry are quite low with a one week course and if he doesn’t like it then he can leave after a couple of month. Did you ever think that committing 4 years of his life on minimum wage would be a bad idea for someone in his situation? Probably not because you’re too caught up in your own ego to prove yourself right. Most people here don’t know anything about being an agent except for what they’ve heard. Maybe I should throw in becoming a NASA astronaut because you know I watched a movie about it and it seems all heroic. Atleast my post not to become a agent was based on some actual data points given by the OP while you’re just growing out random advice.
If your in Melb or Syd. The markets are down. Doubt they would be hiring. More like shedding staff.
The markets are down, huh! Please tell that to the seller's,REA's, auctioneer's!
@twww I bet if you went into any realestate agent today and asked if they were hiring 99% would say they aren't… The 1% is probably just to check out the employee stock.
is he attractive and charismatic?
Yes. Is that imoprtant?
Yes. But he also needs to be at least 6ft tall…. or so I've heard ; )
Is he a prick?
Only when assessing odds of success in a sales job.
short real estate agent's (men) don't do too well either.
The only formal qualification you need to work in real estate in VIC is to complete an Agent's Rep course, that'll enable your friend to work as the representative for a fully licensed estate agent.
Having said that it'll probably be a bit of a tough slog in the current climate, your friend will need to be self-sufficient for at least the first 12 months, but it could take up to 3 years to build up a client base that will sustain them long term.
Generally commissions in real estate are skewed toward the listing agent, so while they'll still make a decent buck finding buyers for properties which are currently on the market, the real money is in convincing people to sell their property with you.
Can "Your friend" lie without blinking, have no conscience, overcharge, and still sleep well at night?
If so they will make a perfect real estate agent.
your friend needs to learn important phrases such as-
"Now is the best time to buy,. It's a buyers market"
"Now is the best time to sell,. It's a sellers market"these are both said frequently on a daily basis
ok earnings and personal satisfaction
Have a look at traffic control.
Some things to consider:
- Hard work: Is your friend prepared to do 100s of cold calls and letter box drops every day for at least a year and possibly a lot more?
- Emotional capital: Is your friend used to rejections?
- Long term perspective: Is your friend prepared to stick it out for over a cycle - 7-10+ years? You need this time to build connections and reputation in the market place.
- Existing savings: Can your friend manage with little income for an extended period of time?
- Competition in local area: How many agents operate in your friend's local area? (Much easier to work in your local area - can proudly say that, also limits travel time)
This sounds like a first hand advice. Thanks.
Your 'mate' clearly hasn't thought about this. You become an agent to make shitloads of money to pay for the hookers and coke not make 'ok earnings'. You may as well go into property management if you want that. It takes a high degree of personal motivation to deal with the rejections and keep on smiling. I know a couple of agents and the only thing they get up for in the morning is the comm. These guys are not resi either. You'll need to go out there and win listings and then sell. That's the job. Build up a database of buyers, get a good name in a market niche and work it hard.
Thanks for the insight. What is resi? I assume comm is commission?
And work on weekends and expect calls from sellers/buyers at any time of day or night…
As far as I know, nothing too special is required, from what I heard from a friend though, you usually start off helping someone out first, so first year or so you might not get much money or anything. Also keep in mind that some places like Sydney, because of so many people buying and selling houses that a lot of people tried to become real estate agent, I feel that its slowed down a bit now so now might be a bit too many agents in the market in certain areas.
Real estate agents jobs have also changed a bit lately, it used to be more about buying and selling houses, but these days its more about rental properties, dealing with tenants, issues, etc, so your friend might have to keep that in mind if they think they'll just be visiting and selling houses.
Real estate agents jobs have also changed a bit lately, it used to be more about buying and selling houses, but these days its more about rental properties, dealing with tenants, issues, etc
Real estate sales and property management are different roles/careers. Only the owner of the agency "manages" both functions. Obviously sales can come from the rent roll.
First things first - he needs to acquire a black BMW 325.
Secondly, does he look good with a shaved head and a bit of scalp polish?
Its never too late to be scum.
Amen brother
And I live on an aircraft carrier.
I have a BMW television
He’s better getting a job a Bunnings.
As far as I'm aware the only real qualifications for REA, are if u have a faint pulse and as others have mentoned a lack of morals. Is your friend going thru a mod-life crisis? Tell him to consider anotger line of work that has a level of credibility. It will be hard to change careers at 45, with little to no qualifications and experience. Choose a job closer to your current line of work to ensure a good level of pay he is accustomed to.
I think he is pretty much in a mid life crisis. He knows it would be hard to change profession at this age, but his line of work doesn’t really reward personal self investment and I think that’s why he is looking at these personal skill based professions. Thanks for your advice.
he is looking at these personal skill based professions
I think this is where he might be confused. He is not really going to do something for them (he will have to provide a lot of customer service, but if that's all he can provide he's out the door), he is going to get them to do something for him - i.e. list with him because he can get them the highest price, lower their expectations because that's the most the market is willing to pay. And he is competing with sales guys, not marketing/customer service guys, and have to do it better than them.
Sounds like it takes to be in the game a few years before you can be really good at it.
I've recently been viewing homes for sale, with & for my son's first time purchase.
To say the agents have been underwhelming is a huge compliment. They've also been: dismissive, evasive, and down-right lied about quite a few issues we'd asked about. They ALL will (IF they contact you back) tell you that there's been an offer on the property (there isn't), as a "push". They try to use the term, "as-is" as a way to avoid divulging negatives which they are LEGALLY required to disclose. I know this, after-the-fact, from speaking to loan officers at banks & mortgage brokers.
You're also hurried through the 15-30 min. viewing because the agent has to drive all over to open as many as possible on the day. The last viewing, I had scheduled at rush-hour, as this place is near a main road and I wanted to hear the traffic noise. Well, we arrive and there's already another person there (driving a Mercedes). He leaves pretty much as soon as we get out of the car. I fully & completely believe that he was a "plant". As we leave later, the agent says, "yeah, that guy who was here before you is probably going to put in an offer" (he didn't).
REA are basically moral-less, broken compasses who hand out flyers and take a % of the sale. NEVER forget—-> they "work" for the SELLER, not the buyer!
they "work" for the SELLER, not the buyer!
Let me clarify: they "work" for THEMSELVES. They can't just work for the seller, especially not in a buyer's market. A lot of their work involves conditioning the seller to accept a lower price! Many sellers have anchored their selling price to a past higher price before a downturn and the agent needs to get these sellers in touch with market reality.
They work for the seller only. In other words, it is the seller who pays them.
You could argue that there would be no pay without a buyer, but it doesn't work like that. The seller is the boss, thus all of their (if you can call it that) "loyalty", is towards the seller.
My mother was a RE broker, & I had my RE sales license, as at one time thought I might go into business for myself.
They pretty much lie about offers etc..so just offer a value you feel is worth for the house /surrounding places if they ignore it, then at least you didn't pay too much, it's when you're in a rush to buy that you get ripped off.
Thanks everyone. There was a lot of generralisation in the comments, but I guess you can apply that to so many professions these days. Builders? Lawyers? Politicians? Developers? I will have a few good points to take from here to my good friend when we talk next.
When I was buying last year there were plenty of old (& young) REs that I dealt with. The older ones had a particular air of desperation about them.
I'm not sure this would be an ideal time to enter the industry.
Why not property developer something like instead..
What kind of carriers, a phone carrier or aircraft carrier? ….Education, what?
Doh, you edged me out by a few minutes.
Savage!
No, only the willingness to lie, push clients into signing the dotted line, and manipulate where required.
Leasing a high yield investment vehicle also recommended, preferably a black Audi/BMW large sedan or SUV.