Do we still want to work like it’s 1999? No, that’s why agents need to ask themselves what they really want their work, life and compensation to look like moving forward, Rachael Hite writes.
Whether it’s refining your business model, mastering new technologies, or discovering strategies to capitalize on the next market surge, Inman Connect New York will prepare you to take bold steps forward. The Next Chapter is about to begin. Be part of it. Join us and thousands of real estate leaders Jan. 22-24, 2025.
Labor Day is marked by parades, barbecues, and a general sense of relief at the unofficial end of summer. However, the essence of Labor Day is rooted in the struggles of workers who fought for better working conditions, fair wages and reasonable hours.
As of late, agents have had nothing but commission on the brain, but trying to define what a “fair” wage is for the value agents provide is bittersweet in our post-settlement era, where buyer agents have to prove their worth upfront to earn a paycheck at all.
While the industry is focused on commissions and continuing to make what they made pre-Aug. 17, maybe what we should be focused on is the flexibility that real estate offers and how we can improve our whole lives due to that flexibility.
After all, there’s a good chance there’s not enough business for everyone to be a full-time agent in our New Normal. Last year, the Consumer Federation of America released a report that showed that 49 percent of agents sold one or fewer homes in 2023. And that was before the rule changes.
So if you’re anywhere near that 49 percent or your business is down double-digits like many agents, what will your life look like in the future? How can you continue to support yourself and your family while spending less time closing deals and more time enjoying your personal life?
What if we stopped looking at part-time agents as less than professional and started shifting into the mindset that being an agent part-time can be a fulfilling side hustle (or main hustle) that allows you to work less, close a higher volume of business and win at our new vision of life.
The good news is that it’s 2024, and the modern workspace looks nothing like it did in the 1900s, back in the days of picking up the keys at the listing office and printing out listing books.
These days, four-day workweeks are becoming more prevalent, and technology and effective time management can allow us to complete work as it comes in rather than sitting by the phone 24/7. Maybe these rule changes are a gift in that this shift could allow us to get out of the top-producer-or-bust mind frame (which encourages a high rate of failure) and allow us to get serious about having a realistic career that encourages more work-life balance.
As the American dream becomes harder to achieve, let’s rethink what our work-life should encompass and how we can get there with less of a hustle culture mentality.
Do agents earn enough?
Most Americans are aiming to earn enough income to be considered middle class, but this always squeezed income bracket is becoming harder to maintain as inflation continues to stifle progress and wages fail to keep up with the cost of basic necessities like food, utilities, child care, senior care and affordable housing.
In 2020, The Pew Reserach Center launched a middle class calculator, and its insights are very helpful for those who are not sure they are making “market rate” income for the job they are doing. It’s more difficult to calculate this for agents because of low inventory and over-saturation of agents in many markets.
The median age of Realtors is 55, which shows that most of the folks in the business have either been in the business for multiple years or have joined the ranks as a second or third career choice.
The median income for U.S. households is $74,580, according to U.S. Census data from 2022, the most recent data available. According to the National Association of Realtors 2024 Member Profile, the median gross income of Realtors was $55,800 in 2023.
The average agent makes less than the median income required to qualify for “middle class” in America, and one could argue that the labor involved in navigating and closing transactions calls for appropriate compensation of commissions because the work is performed without payment upfront.
Culture shifts around labor
A 9-to-5 at one employer for 30 years isn’t the only way to make a living anymore. When it comes to rethinking our work life, millennials especially have learned to embrace multiple income streams and career glow-ups.
Labeled by Gallup as the “job hopping generation,” poor economic conditions have taught millennials to be self-reliant and not to rely on corporate structures for a long-term career.
Working one job for an entire career isn’t realistic anymore. Data shows that staying at a job for long periods of time almost guarantees that you are not being paid a market rate. Forbes reports that some folks are making 50 percent less than their peers by staying at their current jobs too long.
The U.S. Labor Department reports that more Americans are working two or more jobs than ever before, and women are more likely to be working multiple jobs than men.
Younger generations are creating a culture shift with the realization that they aren’t their jobs. They’re more focused on living a good life, working less, and prioritizing self-care and downtime. According to Business Insider, millennials are willing to take a 20 percent pay cut to attain a better work-life balance.
Rethinking what work should be
The dated practice of a 40-hour workweek does not work any longer, and as our country continues to age, with 1 in 6 Americans 65 or older, it’s just not realistic. This weekend, let’s focus on honoring the evolution of work — from hard labor to flexibility.
As you sip your beverage of choice this Labor Day, take a minute to appreciate the amazing work that you’ve done and consider how you want to move forward in your life. Ask yourself how much labor is enough and where you will draw the line between hustling and home life. Perhaps taking a step back and rethinking your workweek is one of the major opportunities that will spring up from these challenging times of change.
Rachael Hite is a business development specialist, fair housing advocate, copy editor, and former agent. Rachael is currently perfecting her long game selling forever homes in a retirement community in Northern Virginia. You can connect with her about life, marketing and business on Instagram.