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Pros and Cons of Being a Real Estate Agent

Pros and Cons of Being a Real Estate Agent

As everything has risk, here we present you the pros and cons of being a real estate agent. Real estate agents are licensed professionals who act as a negotiator and arrange the buying and selling in real estate transactions. Most of the agents work under a real estate broker who has additional training and certification. The agents completely earn on the commission basis, so their own ability to assist clients and make deals that are beneficial for the client as well as themselves makes their earning base. Though most of the real estate agent might say that they love their job and see their future in same, be noted that this career isn’t suitable for everyone.

If you are someone who are very good at marketing and making clients, if you have ability to enhance the transaction and influence your clients easily, then this career might appeal you a lot, else you would better stay off the line. Though the job can be lucrative and appealing, it requires a lot of hard work and sacrifices. But if you feel that working for 8 hours a day, 5 days a week is the perfect job scenario for you, then you won’t be appealed by the charm of real estate jobs.

Pros and Cons of Being a Real Estate Agent are as follows:-

Everything isn’t always as planned, there needs to be risk taken somewhere down the road and if you are a real estate agent, then risk is your middle name. To choose being a real estate agent, there are few pros and cons discussed below.

Pros and Cons of Being a Real Estate Agent

Pros

  • Flexible schedule
    You have your own flexible schedule for your work throughout the day. You can work as much and whenever you feel like working. You can walk around the house work and other tasks not being bound to work at the given schedule.
  • Unlimited Income Potential
    You being your own boss have unlimited potential to work and earn. There is no potential limit on how much you can make for living, but in general real estate professionals make 25% more than all other workers on average. You are in charge of your transactions and based on your skills, you can decide on how much you should be earning.
  • Real estate is dynamic
    All it takes is a good market condition and you will be earning much more than you can keep. When the market is high, you can just focus on working and not worry for what has to come next. It is the best time to plan for the future as well because real estate is dynamic, no one knows what happens next.
  • Make others achieve their dreams
    It feels good, really good when you can be the means of someone’s happiness. Being a real estate agent, you can fulfill other’s dream of having a good deal of a house they have always been dreaming of. It can fulfil their dreams while filling your bank account as well.
  • No fixed location to work
    Your home is your work place, you can work from your home, even outside the city area, anywhere you feel like working. Being an agent, you don’t have a fixed desk to work on, you can be working and travelling all at the same time.

Also Read: Pros and Cons of Refinancing Mortgage

Cons

  • No fixed working hours
    Having a flexible schedule, you end up working even more sometimes than you actually would do. The standard week hours are 40 hours and day off on weekends while being a real estate agent, you don’t have any such schedules and weekends. You work 24/7 as per the work load.
  • Uneven income
    During the high time, you can choose to just earn than worry, but in slow time, your income is limited and very less and your worries for the future starts. Without working, making deals, you don’t get a paycheck.
  • Making deals for others can be stressful
    While it is very pleasing to make others a happy deal, it can be pretty stressing to find a perfect deal for the client. Its you who has to roam around searching the property while client just makes the demand.
  • High failure rate for new agents
    If you are new in the market, the chances are that you will be failing a lot. Without experience, you can fail to gain the client’s trust while sometimes fail to make the correct commission you deserve. So, it takes very stressful time and dedication to be established as an agent.
  • You are on your own
    Liability or risk or loss, you are all on your own. Its easier to keep all the profit to own self, but to have all the losses and liability on your head alone depresses you, makes harder to take any further decision, and risk just gets bigger and bigger.

Conclusion on Pros and Cons of Being a Real Estate Agent

As a conclusion, it isn’t a fun job to take on as a career, rather it is something that demands a lot of time and devotion and patience to excel and become pro at. You can have your take on why you want to be a real estate agent, but without understanding the pros and cons of being a real estate agent, you would better back off from the decision. At the end, its your decision to make, but make it wisely.

Tariffs Pros and Cons

Tariffs Pros and Cons

Tariffs can be said as the custom taxes or penalties that the government impose on imports or exports in a country. The total tax amount is calculated by the tax percentage of the total cost of the product, including freight and insurance.

The governments of different nations impose tariffs on goods and services and also restrict importation of cheap substandard goods.

Below listed are some of the advantages and disadvantages of tariff:

Pros and Cons of Tariffs

Image Credit: Market Business News

Pros of Tariffs:

  1. Protects local industries

Government imposes tariffs on imports so as to protect the local industries from collapsing. They try to discourage the industries from importing cheaper goods from abroad hence protect them industries from selling cheap good.

  1. Expansion of the economy

It also plays an important role in the vas development and expansion of the economy of the particular country by creating more employment opportunities, reduction of the deficit and increase in revenue for the government.

  1. Creates employment opportunities

Tariffs create employment opportunities for the citizens by encouraging the growth of local industries to grow to produce more local goods

  1. Prevents dumping

Many countries tend sell their rejected goods to other countries. Tariffs protect the country from being a recipient such goods and prevents dumping.

  1. Strengthens local economy

With the citizens of the country being involved in local industries to manufacture local goods and services, there is a vast improvement on the growth of the economy. Also, as it controls foreign goods and service from entering the market, it reduces the deficit of the economy since products are produced locally.

Also Read: Pros and Cons of Refinancing Mortgage

Cons of Tariffs:

  1. Demoralize foreign investment

Tariff demoralizes the foreign investors from investing for the country. This may have a negative effect on the economy as there is no direct investment from the foreign country.

  1. Discourages imports

As tariffs discourage countries from exporting goods to many other countries, the countries with less economy value may face to shortage of goods and services.

  1. Increases taxation

Tariffs increases the tax levied on goods and services in the good which ultimately increases the price of the goods.

  1. Influence international relations

Tariffs also impact the relationship between two countries since they deny the goods to be imported through foreign relations.

  1. Negative effects on the economy

There is a high potential of having negative effects on the economy of the country because of tariffs. With reduction of the competition between manufacturers there may lack adequate supply of products and many others.

Pros and Cons of Refinancing Mortgage

Many people these days break their current mortgage ignoring the financial penalty involved so that they can get more favorable interest rate which saves a huge amount of money for their whole life. Today we will focus on all possible pros and cons of refinancing mortgage here. Please feel free to comment if you have any queries!

Pros and Cons of Refinancing Mortgage

Below listed are some pros and cons of refinancing mortgage that needs to be focused before taking it:

Pros of refinancing mortgage:

  1. Cheap loans

Refinancing historically lowers the interest rate which ultimately lowers the monthly mortgage payments because of which people are able to save thousands. Hence, refinancing is taken as the better option for people wanting to as much as a few dollars.

  1. Improved loan period

With the lower rates, you are also allowed to shorten the length mortgage loan period. With the low rates, the monthly payment is also lowered as well as a shortened length of your loan saves dollars from the interest.

  1. More advantage

These days there are many loan providers who offer low rates right now which provide you with much more negotiating power for a better deal from the lenders. Better to refinance from the lenders who have a low-interest rate and include no penalty for paying it off early.

  1. No more adjustable rate mortgages

Refinancing further has an option of switching from adjustable rate mortgages to fixed-rate loans which an advantage as they don’t need to increase the interest payment when the rate goes up in the market as the rate stays same for the entire life.

  1. Loan mergers

Refinancing allows you to consolidate a second mortgage which can generally save money as it makes you pay one low rate on the entire amount instead of a low percentage on the primary mortgage.

  1. Cash in your pocket

With equity inside the house, the refinanced loan can be used to cash out that equity. This money from this process can be used to pay off other more expensive debt, such as credit cards or invest it in a start-up business. But don’t misuse it leading up to the financial crisis.

Also Read: Whole Life Insurance Pros and Cons

Cons of refinancing mortgage:

  1. Lower Rates

Even with the lower rates, the cost of refinancing can drastically affect the savings you’ll get a monthly payment with your new loan. Be careful with the refinancing fees to make sure your savings will pay back those costs in a due time.

  1. Financial risk

Some states give a “non-recourse” loan then the bank can shut down your house but can’t come after your other assets. However, refinanced mortgage loans usually shut down the house, sell it and still if it doesn’t cover your loan amount, then the bank can seize other assets.

  1. Little people qualify

These days since banks are being more selective because of the lending problems, refinancing requires an average credit score to qualify for the loan. And if your credit is not enough then you may be able to start the refinancing process but can get rejected once banks check their scores.

  1. Penalties

Your loan may include a penalty for paying it off early, which includes refinancing it. Better to settle down with the lenders in the deal. And if you’re refinancing with the same lender, try to abandon the penalty as much as possible.

  1. Less mobility

In refinancing, there may be some situations in which you will have to stay in your house for many months to recover the fees you paid to get the lower monthly rate.

  1. Many Paperwork

To get everything at a lower rate, you need to go through a very lengthy loan application process that allows for a complete review of your finances and employment history, which also may include income tax returns, pay stubs, investment and loan statements, and also savings account balances.