Updated: Mar 26
Becoming a property agent has always been one of the most popular entrepreneurial opportunities in Singapore.
For many people, it is also a viable mid-life career switch option that offers plenty of freedom and income potential; something that they seek after years of mundane employment.
The real estate industry can be really exciting and no day is ever the same.
Yes, i might be a bit biased - but how can I not?
Our job has great flexibility, we earn attractive commissions and have the power to determine what we want to do at any given moment.
But I am not going to lie, there is alot more to it, and if you are thinking of joining the real estate industry, here are a few things that you should know before taking the plunge.
1. Potential Sky High Earnings is Achievable but ….
Your monthly income fluctuates depending on how well you and the market is performing.
If you are familiar with how most real estate sales jobs work, you should know that real estate agents by and large do not get a monthly salary.
Realtors only get paid when we successfully close a transaction.
On the bright side, the commissions that we receive typically surpasses the monthly income of an average desk bound job in Singapore and your length of time in the trade does not determine how well you will do.
In one of my rookie agent's case, he clocked in more than $700,000 (Yes, it is no typo error) commission in his 1st year of joining my team. Was he a top sales guy before? No.
He did not have much of a sales background before real estate sales.
In another case, my rookie agent who was an ex-teacher with absolutely no background in sales, achieved more than $300,000 in her 1st year just focusing on 2 condominium projects.
But does that mean everyone is able to achieve this?
That brings us to the second point..
2. Possibility of Zero Income
Rosy pictures of a 6 figures monthly/annual income that property agents can expect in their careers are attainable but we need to face the reality that there are times when the real estate market does not do well.
And when this happens, property agents end up with no income for the month.
The property industry’s fortune follows a cyclical trend, where there are periods when people rush to sell or buy properties, and a time when transactions slow down.
It is an ebb and flow of the market and follows a certain rhythm.
For example, the graph above shows sales of private homes in Singapore's Rest of Central Region for the past 4 years and seasonal spikes in volume can be observed every year during the 2nd to 4th quarters and sluggishness, during the 1st quarter.
On top of that, when global crisis strikes or cooling measures are applied by the government, volume usually reaches a low.
However, even during periods of lower volume, with the right skill sets, attitude and platforms, it is still possible to achieve phenomenal sales results.
Most agents fail not due to lowered transaction volumes but to lower activity levels from a negativity filled mindset.
Understand that no matter how bad the market is, property is a bread and butter aspect of people's needs and transactions will still happen. Whether it is rental or sale deals, people still need a roof over their heads even if the worst of crisis hits.