What is the benefit of being a real estate professional?

Deducting rental real estate losses is a valuable perk for real estate professionals. Unlike passive investors, real estate professional status means you can deduct your rental property losses against any income source, like salaries or business profits, to lower your tax bill.

What are real estate advantages and disadvantages?

Investing in real estate can be a good idea if done thoughtfully and strategically. It offers the potential for steady income, capital appreciation and tax benefits . However, it's not without its challenges, including high initial costs, property management responsibilities and market risks.

What is the hardest thing about being a real estate agent?

One of the hardest things about being a real estate agent is smoothing your income so that it is consistent throughout the year . This requires discipline and rigorous budgeting. Some agents take second jobs.

How is real estate beneficial?

The benefits of investing in real estate include passive income, stable cash flow, tax advantages, diversification, and leverage .

Why should you choose me as your realtor?

I'm committed to providing excellent customer service . l will listen to your needs and then develop a plan that works for you. My customers continually become my long term customers time and time again, choosing me for all their real estate needs and referring me to their family and friends.

What are the benefits of reps in real estate?

Real Estate Professional Status (REPS) FAQs Obtaining this status provides significant tax advantages, including the treatment of rental income as active income and unrestricted deductions for rental losses .

Is real estate professional status worth it?

Real estate professional status offers several tax benefits, including treating rental income as active income, fully deducting rental losses, accelerated depreciation, potentially avoiding the 3.8% Net Investment Income Tax (NIIT), and benefiting from long-term capital gains treatment when selling a rental property.

What does the IRS consider a real estate professional?

Real Estate Professional Test. To qualify as a real estate professional, a taxpayer must satisfy the following tests: Perform more than 50% of services in real property trades or businesses (“50% test”), and . Perform more than 750 hours of service in real property trades or businesses (“750 hours test”) , and.

What are the disadvantages of having a real estate agent?

One of the biggest drawbacks of working with a real estate agent is the cost . Agent commissions can be a significant expense for sellers, as they typically take a percentage of the sale price of the home. Buyers may also face additional costs, such as closing costs and other fees.

Do estate agents have a bad reputation?

Delays, a lack of communication, and shady valuation tactics are the most common complaints about estate agents.

Is being a realtor stressful?

As a real estate agent, you may be on long calls and expected to work long hours. You must be able to handle stress to successfully sell homes . Your personal life will suffer if it is not properly managed.

Benefits and Considerations of Being a Real Estate Agent (2024)

For as long as the real estate industry has existed, people have been drawn to real estate careers because of the ability to create their own schedules, work from home, and meet new people. Having a career as a real estate agent can be exciting and adventurous. If you’re working toward a career as a real estate professional, it’s important to know the benefits of such a career and how being a REALTOR®, a member of the National Association of REALTORS®, can support you in your career journey.

What is a Real Estate Agent?

Real estate agents are licensed professionals responsible for representing buyers and sellers during different types of real estate transactions. Most states require individuals who become real estate agents to work for a professional real estate broker, which can be a brokerage firm or an individual.

What is a REALTOR®?

A REALTOR® is a member of the National Association of REALTORS®, America’s largest trade association. NAR is comprised of all types of real estate professionals, from agents and brokers to appraisers and property managers. Agents who join NAR have agreed to abide by NAR’s strict code of ethics. REALTORS® have access to proprietary data and research and a variety of educational opportunities through their membership in NAR.

Benefits and Considerations of Being a Real Estate Agent

If you’re interested in a career in real estate, there are many benefits and considerations of becoming a real estate agent. Keep in mind that some of the downsides associated with being a real estate agent are alleviated through the resources and benefits offered to members by the National Association of REALTORS®.

Benefits of Becoming a Real Estate Agent

The many perks of being a real estate agent include:

A more flexible schedule:Many real estate agents are contractors or freelance workers instead of 9-to-5 salaried employees. When you enter this type of career, you can essentially set your own hours, providing maximum flexibility for you to work when and where you please.
Strong relationships with clients: Since you’ll regularly be doing business and marketing in your community, you’ll naturally create relationships. As time goes on, you’ll earn the trust of people in your area and become a knowledgeable source of information.
You can make dreams come true: When you represent buyers during a real estate transaction, you’re helping make their dreams come true. Owning a home continues to be a major life goal for many people, with 28% of buyers citing their primary reason for purchasing a house as simply the desire to own a home of their own per NAR’s 2022 Home Buyers and Sellers Generational Trends report.

Considerations of Becoming a Real Estate Agent

Even though there are numerous advantages associated with being a real estate agent, there are also some things to consider, which include:

Lack of benefits and job security: Being a real estate agent isn’t the most secure job; often, medical and other traditional employment benefits aren’t provided. If you decide to become a REALTOR®, you’ll have access to the benefits offered by the National Association of REALTORS® like discounts on popular goods and services through NAR REALTOR Benefits® program.
Financial preparation may take some time: During the initial few months of being a real estate agent, it may be challenging to get by while you wait to complete a transaction. You can mitigate this downside by building an emergency fund to dip into should the need arise.
Inconsistent or irregular business hours: Even though being a real estate agent allows for added flexibility, you may need to meet with clients for open houses or showings at different times of the day. That means you may find yourself working on weekends or nights depending on your clients’ needs.

Benefits and Considerations of Being a REALTOR® by Joining NAR

You will need to pay annual membership dues for national membership, and local and state association dues as well. The good news is that these costs are well worth the resources you’ll gain access through National Association of REALTORS® and your local and state associations.

Benefitsof Joining NAR and Becoming a REALTOR®

Joining NAR provides you with many tangible benefits that can help you grow your career. The advantages associated with being an agent who is a REALTOR® include:

Industry recognition:The title of REALTOR® is regarded with considerable prestige because of the strict code of ethics that NAR members agree to abide by. Clients may be more inclined to trust someone who has taken steps to adhere to this code of ethics. NAR also has a mentorship program known as SPIRE, which allows REALTORS® to access additional resources and networking opportunities. If you’re not yet a real estate agent, but you’re interested in learning more about a career in real estate, you can also participate in SPIRE.
Support the future of real estate agents: NAR directly advocates for national policies and laws that will strengthen Americans’ ability to purchase, sell, and own property. Along with this advocacy work, NAR supports the interests of its members. NAR provides resources and benefits that can help members have long and successful careers in the real estate industry.
Ample REALTOR® benefits: NAR offers REALTOR Benefits®, which provides members with comprehensive educational tools, resources, industry events, and discounts on everything from rental cars to computers.

Considerations for Joining NAR and Becoming a REALTOR®

While there aren’t downsides to being a REALTOR® if you’re already a real estate agent, there are a couple of considerations that you should take into account. These include:

Joining NAR and Becoming a REALTOR® Requires a Code of Ethics Training: Anyone who wants to join NAR will need to study NAR Code of Ethics and complete a Code of Ethics training every three-year cycle.
Members of NAR Can Commit to Excellence: Those who join can also decide to earn the C2EX (Commitment to Excellence) Endorsem*nt. REALTORS® can promote the C2EX Endorsem*nt working with clients and other REALTORS®.

Why Joining NAR Is Worth It

While being a real estate agent has its advantages and allows you to set flexible hours, joining NAR can help you advance your career and avoid the downsides of being a real estate agent. As a REALTOR®, you’ll also gain access to extensive resources and support that NAR provides to its members.

Learn more about joining NAR and advancing your career so you can start changing lives today.