Should You Get A Real Estate License in 2021?
Has The COVID-19 Effect On The Housing Market Subsided?
The volume of finalized contracts that relate to property purchases within the U.S has continued to decline since June following the chaotic COVID-19 related boom that the housing market experienced in 2020.
This is because the limited supply available (which is at record lows at the moment) is unable to keep up with the prolific demand for real estate at the moment. The National Association of Realtors, for example, has gone on the record stating that its Pending Home Sales Index fell by approximately 1.8% in July; this was a smaller decrease than the one seen in June (2.0%), but it remains significant nonetheless.
The aforementioned limited supply coupled with the propelling industry demand has (unsurprisingly) meant that U.S prices have continued to surge, with the average property price of a newly-built single-family home now exceeding USD $390,000.
The boom of the real estate sector has inadvertently propelled the number of real estate agents in the U.S, who have found an opportunity to make significant monetary gains in a relatively short period of time.
Even though the benefits of having a real estate license are widely acknowledged, there are a couple of disadvantages that are associated with the ‘’traditional’’ rigmarole involved- such as the high costs, effort, and time required.
Nevertheless, below we will discuss whether you should invest in getting a real estate license is 2021, taking into account: a) the aforementioned chaotic state of the U.S housing market at the moment, and b) certain industry-improvements and specialists courses that have made the procedure holistically more accessible in recent years.
3 Benefits Of Being A Real Estate Agent (As An Investor)
If you are currently a business owner, investor, or just a freelancer interested in acquiring a real estate license, you should know that the profession can involve significant personal and financial benefits for the individuals involved.
Below, however, we have highlighted our non-exhaustive list of the top 3 benefits of being a real estate agent in 2021.
1. Supplementary Income
Whilst this one may be a bit obvious, it is undoubtedly one of the most significant benefits of acquiring a real estate license.
Even if (at the moment) you are not intending to become a full-time real estate agent, obtaining your license preemptively can ensure you have a ready-to-go secondary source of high-income that can supplement your personal lifestyle and other business ventures on top of your full-time career.
It also allows you to ‘discover’ areas of the business that you would likely not have seen before- working with a plethora of different commercial and residential property contracts and significantly developing your human skills.
2. New Business Contacts
Acquiring a real estate license can go a long way in providing you with essential networking opportunities that you can then take advantage of to build a significant industry portfolio for yourself.
Making a high amount of new contacts- particularly within commercial banks and Venture Capital firms, can be a great help to you in the long run if you are looking to find a high degree of capital to finance a business venture.
3. Increased Access To Deals
Getting registered as a real estate agent will inadvertently ‘’open the door’’ to a variety of different business opportunities, some of which may not even be related to the real estate industry.
You will no longer have to wait for your realtor to alert you about any new commercial opportunities or business deals, you will always remain the primary point of contact, allowing you to act faster and take advantage of a higher number of opportunities.
When considering the state of the real estate market at the moment, it is unequivocally clear that now is a great time for persons to obtain their real estate license.
Having said that, as briefly touched on above the process can involve quite a few opportunity costs (particularly in relation to your time and capital) and consequently individuals should always carry out their own research before making a final career decision.
We hope you enjoyed reading.