Real estate is like a coin. Flip it on the right side and you earn healthy profits, flip it on the wrong side and you get the lion’s share of financial troubles. You should therefore be in a position to weigh the pros and cons of this sector before venturing into it.
Pro: There’s more inventory
It really is like clockwork: When April rolls around, property listings multiply like crocuses. One reason is that homes simply show better in the spring, with all the blooming flowers and the lack of snow. Sellers also feel more motivated once the warmer weather rolls around. And then, of course, success begets success. Potential sellers hear about all the bidding wars that result from springtime listings and figure it’s best to wait out the winter chill, then get a piece of the April action.
Con: There’s more competition
There are many more homes to choose from, yes, but there are also more buyers looking at those homes. Many, many more. Spring produces a rush of potential bidders who, like many sellers, have sat out the previous season in hopes of having more options now. And more buyers, alas, means bidding wars and higher prices, says Babaev. Plus, anticipating this higher demand, sellers may have priced their homes a bit higher than they would in winter.
One good thing about being in the real estate is that you make the rules. You are your own boss. Meaning that if you plan your time well then you can have plenty of time to spend with those you love unfortunately your high season can fall when everyone else is on holiday.
You’re your own boss
Pro: You have control over your own hours and the freedom of time and movement. You’re not chained to a desk all day and there’s no time card to punch. It can feel very liberating. I tend to work from home, which gives me more time to spend with my family.
Con: You’re working when everyone else is off. Most of your customers have 9-to-5 jobs, so they’ll likely sign a contract or do a walkthrough in the evening. And don’t forget those weekend open house tours. Planning a Saturday brunch with your friend? Forget it. Your new bestie is your client, especially on the weekends.
What about the home buyer or seller who hires an agent, do they have anything to ponder about? Well yes, first of all they can enjoy a smooth transaction because someone who is an expert is handling the deal plus there is not much paperwork for them to handle. All this does not come cheap because the agent does not work hard for nothing. A commission must be paid.
The avoidance of a lot of paperwork and red tape – A highly trained and educated agent will be able to sort through the dozens of pages of mostly fine print and make sure that your sale is done absolutely by the book. You are far less likely to have to worry about errors and omissions; if they do occur, a licensed real estate professional will have insurance to cover them, limiting your risk.
Having to pay commissions – Hiring an agent, especially an experienced, full-service agent, is expensive. Prepare to pay an agent up to 6 percent of the price for which you sale your house. That’s 6 percent of the total sale price, not whatever profit you make on the sale, if you make any at all. You can reduce the commission you have to pay by hiring a discount broker, but you will most likely also have to do without some of the benefits described above.