Pros and Cons about pursuing a career in real estate at this time.

[drewp]

Hi everybody,

I have decided to pursue a career in real estate. I have been wanting to do this for the last few years but didn't have the balls to pursue it untill now. What do you think my obstacles will be, and what I can expect with a dwindling market?

Any feedback would be appreciated.

 

[iSlutsky]

Hi everybody,

I have decided to pursue a career in real estate. I have been wanting to do this for the last few years but didn't have the balls to pursue it untill now. What do you think my obstacles will be, and what I can expect with a dwindling market?

Any feedback would be appreciated.

As an agent, or other?

Residential or commercial?

What type of real-estate? Condos? Pre-Con? Re-sale? Downtown?...etc...

 

[drewp]

As an agent, or other?

Residential or commercial?

What type of real-estate? Condos? Pre-Con? Re-sale? Downtown?...etc...

I am looking to get into residential in Toronto and west Toronto. I think to start I would focus on first time buyers, but expand from that. I do believe getting listings is a key compoent to building and sustaining in real estate career. The key is to get those listings in such a competetive market.

 

[GraceCondos]

I am going to caution you against it. We're at a time where the market is flooded with part time Realtors (there are ~30,000 Realtors registered with TREB) and the sales volume is down 25% from last year.

Treat your decision as if you were opening any business. Would you open an ice cream shop if your neighbourhood had been flooded with new ones over the past few years and sales in the industry were down 1/4?

 

[neuhaus]

I would have to agree with Gracecondos.
There is a huge over supply of realtors in Toronto, most of them are not really doing it full time and many of them don't even deserve to be in the profession at all.
Unless you have a die-hard passion in the profession; have outstanding background in real estate, business, construction & design; are well connected; have the drive and persona of a great salesperson; and have the intuition and knack of reading the market; I wouldn't suggest even entering the field.
Getting listings is one thing, but getting a quality listing with realistic clientelle is vital and sometimes far and few between. If your clients have unrealistic expectations or not 100% serious in selling/buying, than these clients are not worth your time and effort.

Targeting first time buyers and starter homes could be challenging, as these clients often are not realistic, not experienced in real estate and their pickiness and strict budgets could prove a handful (and time consumibg) especially when the commissions earned for these properties are relatively lower.

 

[drewp]

Thanks for responding, and I have to agree with what both of you have said. Isn't better to get into an industry that is struggling, becuase by the time you build a good business the market might change?

I understand that its not the best time and the market is littered with realtors. I plan to commit to the process full time as I know that they are a lot of pt realtors. I also did some research on a governement website to understand the labour market. In the next 5-10 years close to 30000 realtors will be retiring in because they are the baby boomer generation. There is a good chunk or realtors in there 50's and 60's. So yes I understand the market is saturated with realtors, but amajority are retiring, and the others are on a pt basis. That still gives me a great opportuninty to commit to the process on a long term basis. I understand the obstacles but this is a passion of mine and has been since I bought my condo in 2007. I do research for fun and think that my life experience has fostered the development to not only commit to the process but service people in the way I wasn' serviced when I bought my condo.
I believe that it will be very tough but I am tired of thinking about it, I just need to do it.
What could I expect to occur in the first year and what could I do to seperate myself from the other realtors. Do i sound realistic, or is the reality of the business harder to deal with than i can expect?

Was it difficult to break in the business when you started CG?

 

[cdr108]

^ ^ ^
are you asking GraceCondos or CondoGeorge?

 

[drewp]

found this on workingcanada.gc.ca


Occupation Projection
Over the period of 2009-2018, an occupation will be in excess demand (a shortage of workers) if the projected job openings (arising from expansion demand and replacement demand) are greater than the projected job seekers (arising from school leavers, immigration and mobility), while an occupation will be in excess supply (a surplus of workers) if the projected job seekers are greater than the projected job openings. For Insurance And Real Estate Sales Occupations And Buyers, over the period of 2009-2018, job openings are expected to total 64,500. It is expected that 38,749 job seekers will be available to fill these job openings.

Projection of Job Openings vs. Job Seekers
Category Openings %
Expansion Demand 12,000 19%
Retirements 46,114 71%
Deaths 3,861 6%
Emigration 2,524 4%
Projected Job Openings 64,500 100%
Category Seekers %
School Leavers 33,466 86%
Immigration 5,755 15%
Net Mobility -472 -1%
Projected Job Seekers 38,749 100%

I was talking to grace condos, but the conversation is open to anyone

 

[Ric]

Drewp,

If you are really passioinate about RE and think that you will be disciplined to take the time to educate yourself,you like dealing with people and have a thick skin; by all means go ahead. So what if there are 30,000 realtors in the GTA. Are you going to just be 30,000+1 or are you gonna differentiate yourself, find that niche and offer something different from the herd? 80% of agents are not passionate about RE and only did it because they thought it was an easy way to make a quick buck. If this is you then don't even bother; you will end up like most that quit after 2yrs.

I'm of the mindset that the best time to build is when everyone is running under a rock and crying that the sky is falling.The past 2 yrs everyone made a killing. Now it's a different story and those that don't belong will fall by the wayside. Now is the time to standout from the crowd Drewp. Are you up for the challenge?

 

[Ric]

Drewp,

If you are really passioinate about RE and think that you will be disciplined to take the time to educate yourself,you like dealing with people and have a thick skin; by all means go ahead. So what if there are 30,000 realtors in the GTA. Are you going to just be 30,000+1 or are you gonna differentiate yourself, find that niche and offer something different from the herd? 80% of agents are not passionate about RE and only did it because they thought it was an easy way to make a quick buck. If this is you then don't even bother; you will end up like most that quit after 2yrs.

I'm of the mindset that the best time to build is when everyone is running under a rock and crying that the sky is falling.The past 2 yrs everyone made a killing. Now it's a different story and those that don't belong will fall by the wayside. Now is the time to standout from the crowd Drew. Are you up for the challenge?

BTW, I'm a Part Time REALTOR. This has no bearing on me doing my job with passion and providing gr8 service to my clients. I work just as hard to educate myself as anyone who does it FT.

 

[detroitbootybass]

I would think that the times will be lean in the near future, but you'd be able to build a solid foundation for when the real estate market starts to trend upward (3-5 years maybe?). I'd consider it sort of like an apprenticeship - you likely won't make a lot of money, but you'll be well positioned to do so when the housing sector picks back up.

 

[drewp]

Thanks Ric,

I have a pretty thick skin, as I was a mental health counsellor for several years. I had to deal with way worse than I will ever face as a realtor. I know I am up for the challenge because the job is my motivating source. Don't get me wrong I would love to make a good income, but the its the genuine interest that appeals to me the most. I do agree with you that now the market is dwindling down a lot of people would walk away from it. Like i said i plan to commit to this process for the rest of my life so I understand that hard work and ecucation is essential.

Could you tell me what educational tools I could use, or reading materials that will assist me in my development.

 

[Ric]

Thanks Ric,

I have a pretty thick skin, as I was a mental health counsellor for several years. I had to deal with way worse than I will ever face as a realtor. I know I am up for the challenge because the job is my motivating source. Don't get me wrong I would love to make a good income, but the its the genuine interest that appeals to me the most. I do agree with you that now the market is dwindling down a lot of people would walk away from it. Like i said i plan to commit to this process for the rest of my life so I understand that hard work and ecucation is essential.

Could you tell me what educational tools I could use, or reading materials that will assist me in my development.

Apart from what you will learn from OREA; read a lot (search google daily for RE articles/news), make sure you are up to date on what's going on in the financial markets, not just in Canada but globally. Know about mortgages, current rates, government regulations relating to borrowing and housing. You said you wanted to work with first time buyers; so you will need to be aware of all the questions they will ask. First time buyer incentives, RRSP, schools, zoning, transportation, crime, local market conditions, home construction (structural, HVAC, electrical). Calculating monthly payments, fixed vs.variable, accelerated payments and how they affect amortisation are also good things to know (even though a mortgage broker/ banker will provide these services) and add to your arsenal. At the end of the day, your knowledge will be your greatest asset. Not the flashy car or sweet talk. Oh btw, being a member of Urban Toronto is also a gr8 asset. Lots of knowledgeable folks are here; Just prepare to be bashed once you do become a REALTOR.

 

[CN Tower]

Hi everybody,

I have decided to pursue a career in real estate. I have been wanting to do this for the last few years but didn't have the balls to pursue it untill now. What do you think my obstacles will be, and what I can expect with a dwindling market?

Any feedback would be appreciated.

Drew,

There will be some really exciting changes in the way properties get listed for sale now that the MLS is wide open. Why not carve yourself out a niche that will capitalize on these incredible changes?

The days of the full service/full fee real estate are numbered.

 

[drewp]

What do you mean CN tower. What has changed for it to be wide open?