Clock Ticking on Your Real Estate Dreams? Why Many New Agents Miss the Mark and Exit Early.

Plain and simple, this is a first in a series post about failure. Why do agents fail? Why does the average agent sell just one home a month?

Estimates suggest that around 75% of agents fail within the first year, and up to 87% fail within five years.

Welcome to the wild world of real estate, where the houses are big, the stakes are high, and the agents... well, let's just say they sometimes disappear faster than free snacks at an open house. Real estate isn't just about selling homes; it's about selling dreams, which is perhaps why so many enter this glitzy profession with visions of fat commissions dancing in their heads. But hold onto your yard signs, folks, because the turnover rate among real estate agents could give the best roller coasters a run for their money.

It's a known gag in the industry: many agents don't last long enough to figure out how to properly pronounce "escrow," let alone close it. This sad but hilarious truth underscores the importance of not just surviving, but thriving in a field littered with more pitfalls than a home inspector's nightmare.

Reason #1

Let's talk about the "M" word – no, not "mortgage," but "money." The financial hoop-jumping in real estate is like a game of Monopoly, but with real cash and a lot less fun. First, we have the start-up costs. Ah yes, getting started in real estate is akin to doubling a blackjack bet on a pair of four's at a Vegas casino: it's risky, it can be expensive, and you might just end up living with your Mom.

The ongoing costs aren't a picnic either. Between gas money spent driving clients around and the cash dropped on CK suits to impress them, many agents find their wallets lighter than the helium balloons at their open houses. And let's not forget the lavish spending on marketing that shouts, "Look at me! I sell homes!" in every direction, which, incidentally, often whispers back, "but can't manage my own finances."

As for the earning potential? Well, some agents might be better off searching for spare change in the sofa cushions. Despite the common myth of "big money" in real estate, the paycheck can sometimes be as unpredictable as a cat on a skateboard. That's right, not every listing leads to a payday, and the percentage of new agents who run out of business funds prematurely is higher than the number of people who think the "Property Brothers" are, in fact, just one person. To all the new agents out there, a piece of friendly advice: budget like you're saving for the apocalypse.

In real estate, they say you have to spend money to make money. And unfortunately, some agents take this too literally, spending like they're in a rap video. So, buckle up, keep your wallet close, and remember: if you can manage your finances half as well as you can stage a living room, you might just stick around long enough to see your business cards become a collector's item.