Nearly 4 million Americans walked away from their jobs in July, 2021, a phenomenon labeled “The Great Resignation.”
The reasons for the mass exodus are varied, according to Carmen Reinicke at CNBC.com. Some of them include:
- The desire for more flexibility in their working conditions, especially the ability to work remotely. This is high on list of several of the surveys we viewed.
- Craving career advancement.
- Higher pay.
As small business owners, real estate agents can grant themselves all the flexibility in their schedules that they want. In fact, it’s what drew them to the industry in the first place. But it may come at a cost: Less income.
Nobody seems to know the exact churn rate for real estate agents. Tom Ferry, referring to a 2014 NAR study, says 87% of real estate agents eventually leave the business.
If you’re contemplating joining them and don’t have a clear idea of what you’re looking for as real estate agent career alternatives, don’t dump your real estate license.
1. Head out on your own
If you still have a bit of love for the real estate industry and want real estate agent career alternatives, consider starting your own brokerage.
Your first decision will be whether you’ll go independent or buy a franchise. That decision will depend on a couple of factors:
- Do you meet the broker licensure requirements in your state?
- Do you have the funds to strike out on your own?
- Are you willing to take on all legal responsibility for your agents?
- Do you want an even longer list of responsibilities?
- Do you have the patience to work with new agents?
Naturally, these items aren’t all you’ll need to consider, but they do include the basics.
If your main goal is to increase your income, becoming a real estate broker is one way to use your sales license as a stepping stone to earn more.
“According to the United States Bureau of Labor and Statistics (BLS), in 2019, the average annual income for a real estate broker was $163,540.
2. Manage someone else’s property
Have you considered property management careers as real estate agent career alternatives? While there are many factors that can impact a property manager’s salary, the median salary is estimated at $101,956, according to the researchers at salary.com.
This represents a range between $76,260 and $131,263.
Many property managers also receive bonuses and benefits, such as health insurance coverage.
Let’s take a look at some of the pros and cons:
Pros of a career in property management
- The average income of a property manager is higher than that of the average real estate agent.
- Property managers often work on a salary basis, rather than commission-only.
- Keep in mind that commercial property managers earn significantly more than residential property managers.
Cons of a career in property management
- You will be the mediator between the tenants and the property owner. As we all know, there will be some contentious encounters with tenants. If you aren’t good with conflict, you may want to consider another option.
- You’ll typically work longer hours than you did selling real estate. Emergencies happen as well, so you’ll be on call, all hours of the day and night, to attend to them.
- You most likely won’t get to ditch lead gen duties. Somebody needs to find property owners who need management services. If drumming up and chasing after leads are among the reasons you’re ready to kick real estate sales to the curb, this is something to consider.
If property management sounds like something you’d like to do, the first step is to check your state’s legal requirements.
Some states require a broker’s license and some want a property manager license. Still others don’t require a license at all. To learn about requirements in your state, check out “Property Management Laws by State” at allpropetymanagement.com.
3. Appraise it instead of selling it
The bearer of either horrible news or lovely surprises, many real estate agents harbor a bit of a love-fear feeling for appraisers.
Still, it’s a rather cool gig where you aren’t chained to a desk for the entire workday, and that’s why it makes our list for real estate agent career alternatives.
If you’re considering becoming a residential real estate appraiser, consider the following:
- You may not earn as much as you did when slinging houses. The national average salary for a residential real estate appraiser is $63,249 per year, according to research by ziprecruiter.com. The majority earn about $52,000.
- Most appraisers are employees, rather than independent contractors.
- “All states require appraisers to be state licensed or certified in order to provide appraisals to federally regulated lenders,” according to the experts at The Appraisal Institute.
Naturally, it’ll feel a bit like starting over when taking the courses required to become a licensed appraiser. Once you get it done, however, and pass the exam, you’re on your way to a new career.
Find the licensing requirements in your state online at appraisalinstitute.org.
4. Work on the lending side
There are several interesting career choices within the mortgage industry. Some are a better fit for those who like working with people while others are best for the number crunchers and those who enjoy remaining behind-the-scenes.
Some of these positions include:
- Loan officer: This is the guy or gal that you currently recommend to your clients as the first person to contact when they want to buy a home. Loan officers help your buying clients find the right loan for their circumstances. The average earnings, according to the folks at indeed.com, is $179,205 per year.
- Mortgage broker: “Mortgage brokers essentially work as middlemen [or women] between borrowers and banks/lenders …,” according to Colin Robertson at thetruthaboutmortgage.com. Compensation is much like that of real estate agents in that it depends on the number of loans they originate.
- Loan processor: The processor is tasked with collecting all of the borrower’s documentation that the underwriter will need to make a determination. He or she verifies that the documents are complete. The average base salary of a loan processor in the U.S. is $53,435 (indeed.com).
- Underwriting: The underwriter is tasked with verifying the borrower’s qualifications, such as income, employment, etc. The underwriter makes the determination as to whether or not the applicant is credit-worthy. The average base pay for a mortgage underwriter is a smidge less than $70,000 per year.
5. Go huge
Depending on how much college you currently have under your belt, attending law school may be one of the real estate agent career alternatives to think about.
As a real estate attorney, you may still perform many of the more pleasurable tasks of the real estate sales agent, such as advising clients who are involved in a transaction and attending closing as their advocate.
Eight states require an attorney’s involvement at closing, according to octoberresearch.com:
- Connecticut
- Delaware
- Georgia
- Massachusetts
- North Carolina
- Rhode Island
- South Carolina
- West Virginia
Regardless of the area of the country in which you’ll practice, there are other aspects of a real estate lawyer’s business. “Real estate law covers deeds, property taxes, estate planning, zoning, and titles,” according to Troy Segal at investopedia.com.
The average income for attorneys working in the real estate niche ranks third on the “Lawyers that Make the Most Money” list compiled by thelawpraticedocotor.com.
In case you’re wondering, salaries for the top three niches are:
- Intellectual property lawyers – average salary of $155,000 per year
- Health care lawyers – average $147,000 annually
- Real estate lawyers – average $118,000 annually
To get your hands on this sweet gig, you’ll need to hold “… a bachelor’s degree, pass the Law School Admission Test [LSAT], complete a graduate program at a law school accredited by the American Bar Association and pass the bar examination in the state where …” you want to practice, according to Eric Ciechanowski at jobhero.com.
There is no shame in admitting that your real estate career makes you miserable. There is no rule that says you have to stick with it until retirement.
Changing careers is often cited as a life-changing decision. One that many don’t regret. If you feel like you’re in a rut, consider these real estate agent career alternatives.
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