Is selling LI better than selling RE, and why?

Johnny180 · 08-21-2007, 03:35 PM

I'm considering a career change and am looking at insurance vs. real estate. From personal experience, can any of you give some good reasons why any kind of insurance sales/financial planning would be better than selling real estate???

Thanks.

James · 08-21-2007, 03:48 PM

Depending upon where you live you might find the RE market a little stressful.

salpro22 · 08-21-2007, 03:54 PM

Originally Posted by Johnny180

I'm considering a career change and am looking at insurance vs. real estate. From personal experience, can any of you give some good reasons why any kind of insurance sales/financial planning would be better than selling real estate???

Thanks.

You can always do both and then write a book on how to be successful in both fields. Provide a free seminar talking about your program that people can get for the low low price of $2995.00 available in 6 easy payments.

Joking aside, it really boils down to what you find interesting and appealing in both fields.What line of work are you in now and have you ever worked in 100% commission by yourself. I enjoy selling health insurance for a multitude of reasons and I have pondered becoming a commercial real estate broker. I could do both and have a 99% chance of failing or I can focus on health insurance and have a 90% chance of failing

You have to figure out what your passionate about because that will make things easier. I LOVE helping people buy health insurance because I can use my analytical side and show people how to save money by utilizing ideas to reduce health care costs.

In any field you need to specialize. I'd narrow things down a bit to specific areas within both fields and go from there based on your research and experience.

BKrocko · 08-21-2007, 04:40 PM

RE vs LI? They really are the same thing - except with one, you help them with an above ground home and the other, a home in the ground.

LGilmore · 08-21-2007, 08:27 PM

I would think RE would be easier. People can see, touch and experience real estate. An insurance policy is a bunch of papers which for most are hard to see as valuable.

Things vs. people. Show somebody a $5oo,ooo home and tell them it will only cost $1,500 a month and they're scrambling to figure payments. Tell someone they need to pay $35 a month for a half million term and they need to "think" about it.

Sell a 500k home and make 30k. Sell a 500 term policy and make $235.

BKrocko · 08-21-2007, 08:59 PM

Originally Posted by LGilmore

I would think RE would be easier. People can see, touch and experience real estate. An insurance policy is a bunch of papers which for most are hard to see as valuable.

Things vs. people. Show somebody a $5oo,ooo home and tell them it will only cost $1,500 a month and they're scrambling to figure payments. Tell someone they need to pay $35 a month for a half million term and they need to "think" about it.

Sell a 500k home and make 30k. Sell a 500 term policy and make $235.

No matter which one you choose, the prospect is going to be subject to underwriting. It may be easier these days for a person with a few dings on their medical record to secure coverage. A person with a few dings on their credit record may not be so lucky securing a loan in today's market. Just food for thought.

TXINSURANCE · 08-21-2007, 09:50 PM

They are both good choices once you find your "niche" in either and concentrate on that.

RE is too much work for me, therefore I do Insurance.... lol..

happy · 08-22-2007, 12:27 AM

Originally Posted by TXINSURANCE

They are both good choices once you find your "niche" in either and concentrate on that.

RE is too much work for me, therefore I do Insurance.... lol..

I agree.

In my area most good homes are in the $100-$200K price range. I can make the same commission a realtor will make in selling one house by having 1-3 sales with a lot less effort and hours.

And even though life insurance is not tangible, i still believe that it is easy to sell if you are talking to the right kind of prospects.

salpro22 · 08-22-2007, 05:15 AM

Originally Posted by happy

I agree.

In my area most good homes are in the $100-$200K price range. I can make the same commission a realtor will make in selling one house by having 1-3 sales with a lot less effort and hours.

And even though life insurance is not tangible, i still believe that it is easy to sell if you are talking to the right kind of prospects.

Ok, I'll bite. Where do you live that a house costs between 100-200K?

happy · 08-22-2007, 10:34 AM

Originally Posted by salpro22

Ok, I'll bite. Where do you live that a house costs between 100-200K?

Im in texas, houses here are really affordable. Of course there are also luxury homes which are worth significantly more but you can find a a really nice, new 4 bedroom house in a good neighborhood in the 200K range.

Below is a link that will show some new houses being sold in the Dallas/Fort Wort area.

Fox & Jacobs - Harris Ridge - neighborhood in Arlington TX

DallasNews.com HomeCenter - List View

ajtour42 · 08-22-2007, 09:45 PM

Same in Ohio! $200K in my town will get you a very nice 4 BR, 2 BA house with a beautiful yard. (Granted, we also have our fair share of both the $2M variety and the $20K variety.)

Here are the +/-'s I'm thinking of:

Insurance
+ residual income
+ rewrites whenever clients' needs change
+ referrals
+ fairly low start-up costs, especially if you use creative ways to generate business instead of buying leads
+ ability to do business mainly over the phone and computer if you so choose (i.e. no physical showings, open houses, etc.)

Real Estate
+ higher commissions (but is it worth it for the work involved in a single sale?)
- pretty steep franchise fees for using the brand name (i.e. Re/Max)
- harder to make a name for yourself (in my area, it seems like there are four or five power brokers, and the rest of the realtors sort of fight over the leftovers)

James · 08-23-2007, 01:26 AM

Same here in Tennessee, 200 grand will buy you a nice home in a good area for the most part. I just don't get how average income people make it in places like Delaware, California, Mass and so on.

WBunch · 08-23-2007, 08:35 AM

Same down here in my hometown...You can get a nice 4br in the 150-200k in a nice neighborhood...Granted you don't live in a planned or gated community then your looking upward of 500-800K

James · 08-23-2007, 08:44 AM

Originally Posted by WBunch

Same down here in my hometown...You can get a nice 4br in the 150-200k in a nice neighborhood...Granted you don't live in a planned or gated community then your looking upward of 500-800K

Yea, but who wants to live in a Ghetto?

Newby · 08-23-2007, 08:57 AM

Originally Posted by salpro22

Ok, I'll bite. Where do you live that a house costs between 100-200K?

Geeezzzeee JR!?? Come to Evansville, Indiana! I can find you very nice 3,000+ sq ft homes in great neighborhoods with cement ponds and 2.5 car garages all day long for $200,000.

You gotta get out of that burg you're in. Get away from all them Democrates and their high-dollar ways. Come to God's country! We'll raise your standards and lower your cost of living.

BKrocko · 08-23-2007, 02:10 PM

Last week, my client was the featured Realtor on HGTV's House Hunters. That was pretty cool. I called him and tried to have him hook me up with Suzanne Whang but - no go, only the film crew was there. She only appears after the taping.

In Denver, a small starter home will be a little over $200K - and that's if you are willing to put in some sweat equity. If you want to start out with anything better, start looking at about 300K+.