26 May Getting A Real Estate License During A Recession…Are You Crazy?
Some might say you are crazy if you are thinking about getting a real estate license during a recession.
Others might say you’re brilliant.
There is one BIG reason why it’s a good idea to get a real estate license during a recession.
Less competition from other agents
When the real estate market is a strong sellers’ market (like what most of the US has experienced for the past few years), everybody and their cousin gets a real estate license. That means there are more agents out there competing for the same number of clients.
The National Association of REALTORS (NAR) has a record number of members right now (about 1.5 million). Not all real estate licensees are REALTORS, but most of the serious ones choose to join NAR. It’s not an exact barometer for the number of agents out there, but it’s a good tool for estimating.
Agents who have been in the business long enough to experience a market cycle or two will all tell you some version of the same thing:
You will make more money when the market is tough.
Why is that?
When I say “tough” I mean that it takes time, effort, money and negotiating skill to sell homes. The current state of the market in most places in the US right now (May 2022) is EASY for listing agents. Basically, any listing that goes for sale in most metro areas in the US will not spend much time on the market. Most of the listings are selling with multiple offers, over list price, for all cash and with no contingencies.
The idea that getting a real estate license is a ticket to easy riches prompts many people to get real estate a real estate license when the market is hot. (Full disclosure: I was one of those people in 2002.)
But when the market shifts and it takes effort to sell houses again, many of the agents who weren’t all that serious about a real estate career leave the business and do something else with their lives.
It is easier to convince sellers of the value you provide when the market shifts and it takes effort and skill to sell a house again.
That’s the opportunity.
I’m not an economist and I’m not declaring that we are heading toward a recession, but there are a lot of signs that are pointing in that direction.
There is no BAD time to get a real estate license, but right now is a unique point in time. Regardless of what happens with the economy, people always need a place to live, and people are always moving around due to live changes.
These schools are the best places we have found if you are thinking about getting a real estate license. If you need some more options, please contact us and we will help you. Try the chat button to reach us fast.