Expert: Jessica Bryan - 7/1/2008

Question
I've been thinking about carrying on a second career in real estate for some extra cash, and additional knowledge of the market-where I plan to purchase my first home. Though wtih the economy as of now along with the mortgage meltdown and the high foreclosure rates I'm asking whether or not it would be to get into this business, where its profitable.

Thanks

Answer
Dear Dondy;
The real estate profession has long been thought of as a nice little job for people who want to pick up lots of extra cash.  Many think that they can do this part time.  I have found that they are not very successful and do a very poor job since it requires skills that can only be achieved through total dedication and time.  The market has changed and those who don't take the profession seriously find themselves in deep water very quickly.  There are too many things to know these days.  The responsibility of informing your client on an issue that involves buying or selling the most expensive thing they will ever buy or sell is a big one.  It should not be taken lightly.  I caution anyone who wants to 'play' at this to think again.  I am not implyoing that you want to 'play' at this but many do.  which brings me to my next point.  There are too many who jump into this career too quickly and therefore create a glut of agents all competing for a small amount of clients.

In addition, the expenses involved in setting up a business and getting a license are not minor.  Licensing fees, MLS fees, REALTOR association dues, advertising fees, marketing fees, websites, printing, office supplies, etc are all costly.  It will cost many, many thousands of dollars to get started and once you are set up as a real estate professional you have to complete for clients.  This means that you are on call and going the extra mile.  If you have a buyer you are driving them around town (gas costs are killing us right now!) and not ever sure if you are going to make a sale.  No...this is not a good time to get into real estate on a part time basis.  Unless you are willing to work hard at this, it is not a good careet choice for you.

Sincverely,
Jessica Bryan