“More than 80% of new real estate agents don’t make it past three years. Of those who quit, probably more than half of them should have never started in the first place.”
— Wayne Throop, The Reality of Real Estate

The Allure of Real Estate

On the outside, real estate looks like an easy way to make money. You see an agent put up a sign, host an open house, and cash in with what seems like a massive paycheck. If you’ve ever sold your own home, you may have even caught yourself thinking:

  • “That was easy!”
  • “If they can do it, I can do it!”
  • “I’ll get my license and start making big money too!”

But here’s the truth: real estate isn’t an “easy money” career. If it were, everyone would be doing it.

The industry can absolutely provide freedom, flexibility, and incredible income potential — but it can just as easily drain your bank account, steal your evenings and weekends, and leave you wondering why you ever thought this was a good idea.

So before you jump in, let’s look at what it really takes to succeed.

Why So Many New Agents Fail

The failure rate in real estate is staggering. Some studies suggest 50% of new agents don’t survive their first year, and more than 80% are gone within three years.

Why? A few big reasons stand out:

1. They Shouldn’t Have Started in the First Place

This industry isn’t for everyone. Real estate requires patience, persistence, consistency, and good old-fashioned hard work. If you’re chasing “easy money,” you’ll be disappointed fast.

2. They Run Out of Money

Getting started costs more than most people expect. In many places, it’s $5,000+ just to get licensed. Then you’ll spend at least $1,000/month to keep your business running (not counting marketing). Meanwhile, you still have to cover your personal expenses — mortgage, car, groceries, kids’ activities — all while earning very little in your first year. Many new agents “run out of runway” before their business takes off.

3. They Don’t Treat It Like a Business

Being a REALTOR® isn’t a job. The minute you get your license, you become the CEO of your own business. That means building systems, managing your time, setting goals, creating a plan, and executing it — consistently. Those who fail often treat real estate like a part-time gig and are shocked when they don’t see results.

4. They Can’t Generate Leads Fast Enough

This is the big one. You can be great with paperwork and have all the technical knowledge in the world, but if you can’t find new clients, you’re done. As Real Estate Coach Brian Buffini puts it: 85% of success in real estate is lead generation, 15% is everything else.

The Myth of the Million-Dollar Paycheck

Let’s tackle one of the biggest misconceptions: that every deal equals a windfall.

Say an agent sells a $1.5M home. At 5% commission, that’s $75,000, right? Easy money!

Not so fast.

  • Commissions are usually negotiated lower (say 4%).
  • That gets split between buyer and seller brokerages (50/50).
  • Then your brokerage takes their cut (maybe you keep 70%).
  • Now you’re down to about $21,000.
  • Subtract business expenses (30% = $6,300).
  • Subtract taxes (approx. 40% = $5,880).

Take-home: $8,820.

Still nice money, but a long way from the “$75,000 payday” people imagine. And remember — million-dollar listings are rare, especially for new agents.

Most new REALTORS® sell fewer than ten homes a year, often at far lower price points. Suddenly, that “unlimited income” doesn’t look so unlimited.

A Day in the Life: Not Quite as Glamorous as You Think

Many people imagine REALTORS® driving luxury cars, sipping lattes, and working a few hours a day. The reality? It’s often more like juggling chainsaws while riding a unicycle.

Here’s a typical day for many agents:

  • Wake up exhausted (too much on your mind to sleep).
  • Race to an appointment, skipping breakfast.
  • Deal with unmotivated buyers, late paperwork, and endless traffic.
  • Grab coffee and fast food on the go.
  • Fight with the office printer and Wi-Fi.
  • Write an offer under stress, only to have clients “lowball” on their dream home.
  • Squeeze in a rushed lunch (if at all).
  • Attend a tense home inspection that reveals costly repairs.
  • Field client calls well into the evening.
  • Miss the gym, miss dinner with your family, but make it to a networking pub night (because referrals matter).
  • Finally crawl into bed late, exhausted, only to repeat the cycle tomorrow.

And yes, this story is exaggerated … but only slightly.

The Toll on Your Health and Relationships

The stress, late nights, poor diet, lack of exercise, and constant availability take a toll. Many agents burn out, get sick, or see their personal relationships suffer.

But here’s the good news: it doesn’t have to be this way.

How to Survive (and Thrive) in Real Estate

If you’re serious about a career in real estate, here’s what it takes:

  • Commitment: You’re either all in, or you’re out. This is not a side hustle.
  • Financial Preparedness: Have enough savings to survive at least 12–18 months before you expect consistent profits.
  • Systems & Discipline: Treat it like a business. Set goals, follow a plan, and stick to it.
  • Lead Generation: Learn how to find clients — consistently. This is your lifeline.
  • Boundaries & Balance: Manage your time, your stress, and your health. If you don’t, the business will consume you.

Final Thoughts

Real estate can be an amazing career. It can give you freedom, flexibility, and income potential that few industries can match. But the reality is, most new agents never make it past the first three years — not because they aren’t smart or capable, but because they jump in without understanding what it really takes.

If you’re considering real estate, take the time to do your homework. Know the costs. Understand the sacrifices. Decide whether you’re ready to commit fully.

Because in this business, you can’t just dip your toe in the water. You’ve got to dive in — and learn to swim fast.

Ready to Beat the Odds?

If you’re serious about a career in real estate — or you’re already an agent who wants to avoid the pitfalls most new REALTORS® fall into — I can help.

Visit waynethroop.com to learn more about my real estate coaching programs, based on The Reality of Real Estate, and discover how to build a thriving, sustainable career from the inside out.

Sources

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