Consumption and Real Estate
How much does it cost to go to school, take your test and buy the supplies you need to work for a realtor?
Question : How much does it cost to go to school, take your test and buy the supplies you need to work for a realtor?
I’m interested in getting started in real estate and would like to know approximately what it would cost to go to real estate school, take your test and buy the supplies you need to work for a local realtor such as Remax?
Also,
How much should someone new to the business expect to make in their first year selling for a realtor? How long does it take to have a steady income for your family?
Thanks
realtor supplies
Best answer:
Answer by Landlord
If you are new I would not expect you to ean anything at all in this market during your first year. Only a fool would list their house with a new agent and only a fool would have a new agent bargaining for their property. This is not a good time to join this field, people want someone who knows what the heck is going on.
-
-
#2 written by David G 1 year ago
All business runs in cycles. We just finished a long up-cycle in the real estate market. It was unusually long. Now we’re in a major downturn or “correction”. Lots of reasons for this but they are really beside the point. Here’s why I think it’s wise to get a real estate license now, during the downturn rather than waiting. With each sale and purchase a real estate salesperson is making a commission. Those who were already had their real estate license when the market began to climb a few years ago were in the best position to reap big commissions over the longest period. Those who jumped in at the end missed out on the majority of the opportunity. Every one of them would tell you they wished they’d gotten into the market sooner.
If you’ve ever thought that a real estate career was something that might appeal to you this is the time to go for it because when this market finishes it’s “correction” it’s going to turn around and start going the other way. That’s a historical fact. When it hits bottom, people will be buying again. It doesn’t matter that prices will be lower than they were last year or two years ago. The fact is that they will be buying and with each purchase someone is getting a commission and that person could be you. But only if you’re ready.
I know this goes against the way we “feel” and what we “see” but if we wait until things look or feel better we will have missed our best chance. Sometimes we need to move against the current and this is one of those times IMHO.
-
#3 written by Realtor 1 year ago
YES FOR ONLY $ 1,500.00 YOU TOO CAN SELL REAL ESTATE! This is the great lie all realtors are told! Yes, for $ 1,500.00 you can take classes (at least that’s the cost in Birmingham, Alabama) to learn everything you need to get your license, but not much on what it really takes to sell homes.
Most experienced agent do not want to bother with newer agents. When I first started, over two years ago, I was with a different company (Birmingham’s largest real estate company at the time) and I remember asking some of the older agents for help. While a few would help, for the most part, I was told, you just got your license, you should know what you’re doing. Now I’m with Keller Williams Realty, North America’s fastest growing realty company, and since it is the only realty company with profit sharing, every agent in the office has a financial gain in how well that office does, so everyone is more then willing to help out, but more on Keller Williams later.
First we will talk about what it takes to be a realtor, then we will talk cost – for if you do not have what it takes, you will be throwing money away, no matter what the cost is. If you have what it takes, it is well worth the cost!!!
You should be out-going, not afraid to talk with strangers you meet in the mall, stores, etc. You can’t get all bummed out with rejections, trust me, you will get allot of rejections in this line of business. You also need to be a good teacher as well as a good listener. And most of all, if you can remain calm when the world around you is going to pieces, you will make a good realtor.
If you read some of the questions and answers from Yahoo, you will see EVERYTHING is the realtor’s fault, and allot of times, this is true, not because realtors are bad people or trying to pull something (although some do). It is because the realtor did not take the time to explain to the Buyer/Seller how it all works, then if something goes wrong the client has no clue and feel they have been cheated.
Also, before I forget, EVERY realtor, works for a Broker, that is just how it works, but you will learn that in realty school. In Alabama you can not be a Broker until you been an agent for at least two years
COST
My first year I invested a total of $ 5,000.00 (Spread out over the year) over and above the cost of my classes and I only pulled in $ 3,000.00. For a total net income of minus $ 2,000.00 plus or minus a few hundred. This year, so far, I spent $ 2000.00 and made, to date $ 30,000.00. Next year I plan on doing even better!
As you can see, it cost money, but the rewards, well, they speak for them self!
Most real estate companies have what is called OT time (Opportunity Time). The way this works is, you are the agent of the day. You sit in the office and answer the phone. You mostly end up setting up showings for other agents listings, but if a call comes in with someone looking to sell or buy a home, you get that lead, remember, it is only a lead, it is up to you to turn in into a sale or listing. This is only an OK way to get clients. The BEST way is through marketing yourself. That is mainly where the bulk of my budget goes, to marketing myself.
If you remember earlier, I said each Keller Williams agent has a stake in how well the office does, I think, most Keller Williams agents are helping other people not just because of the profit sharing, but because this is just the type of people Keller Williams attracts! Keller Williams culture and belief is
WI4C2TS
W – Win-Win – or no deal ( make it a winning deal for everyone)
I – Integrity – Do the right thing
C – Commitment – In all things
C – Communication – Seek first to understand
C – Creativity – Ideas before results
C – Customers – Always come first (This one I truly believe in)
T – Team Work – Together Everyone Achieves More (another one I truly believe in)
T – Trust Starts with Honesty
S – Success – Results through peopleKeller Williams has some GREAT in house training on how to get listings and market yourself, just to name two of its many classes. Best of all, if offers passive income through profit sharing!
Real estate is not for everyone, but it is a good business to be in, and yes, it is not a job, nor truly a career, it is a business you need to work and grow. True, you work for a broker, but you work as an independent. Most Brokers could care less if your selling or not, you pay a fee just to be in the office on top of your commission splits, so the brokers are not loosing any money on you. The most common split is 60/40 – you keep 60 and the broker gets 40. Some companies will let you keep 95 to 100%, but the monthly fee is like $ 1000.00. Each office is different. Keller Williams offers 70/30 splits for new agents, (Monthly fee, called a desk fee is $ 30.00- once again each office is different) then after you paid a set dollar amount for the year ($ 19,500.00 for my office) then you get to keep 100% for the rest of your anniversary year. You can, however start off at a 90/10 split, BUT then you must guarantee to pay that set amount. So for me, If I took the 90/10 split and only earned enough to have paid $ 17,500.00 in commissions to my office, at the end of my anniversary year, I would have to write a check to Keller Williams for $ 2,000.00. It is for this reason a 90/10 split is not recommended for newer agents, in fact, some Keller Williams brokers will not let new agents get the 90/10 split for that very reason.
Interview with Keller Williams Realty
The only real estate company that offers profit sharing
GREAT company to work for, GREAT training on how to market yourself, in any market.If you would like more info on a career with Keller Williams Realty, go to my web page http://www.pauld-kw.com and on the top you will see “Sell a Property” Click on that, then click on “A career with Keller Williams” I think you will be very impressed. You can also e-mail or call me and I will be more then happy to talk to you about Keller Williams or send you some more information. pauld-kw@hotmail.com
If you do look into Keller Williams because of the information and end up going with them, remember my name when they ask, who would you like to be your sponsor. Just say Paul D. Dziedzic.BEST of luck with your new career!
-
#4 written by Desiderata 1 year ago
Yep, to what the other 2 said. Now is not the time to get into the business. Especially if you have a family! On top of not making any money, you work long hours and sometimes never make a penny. Years back it took me 5 months before I got a pay check and that is when the market was good! It is a fun profession and I love my job. I have been blessed to make a living at it but like one of the others said at least 50% never make it. With the market the way it is, Realtors that have been in the business and made good money thru the years are even dropping out. If you are married and need a salary I’d forget about real estate for the time being. Not only will you most likely end up broke you’ll probably end up divorced. Sorry to be so negative but it’s the sad hard truth right now.
-
#5 written by jbarelli 1 year ago
OK, you’ve asked the right questions. Here are some answers.
Real estate school is normally very inexpensive and much too easy. Each state is different, but Washington (where I’m licensed) is pretty typical. A real estate course here costs around $ 350, and many are taken completely online. The test costs another $ 55 (last time I checked).
Startup costs vary depending on the office and the arrangement you make with the broker. In some cases, the only out of pocket expenses you’ll pay will be to the local Realtor association (figure around $ 300) and the Multiple Listing Service (about $ 250). In some areas, those costs are combined, in others they are separate.
Other costs are covered by some brokers and not by others. Generally, the better the “split”, the less the broker pays for. With a 50/50 commission split, you should have no desk fees, office supplied signage and lockboxes, access to a computer, FAX and phone. They may also supply an internet address and cards. (You may want to supply your own e-mail address, so that you can keep it if you change brokerages.)
If you go with a place with a 70/30 split, you should expect to supply your own signage (you won’t believe what those corrogated plastic signs cost), your own lockboxes (about $ 100 each), cards (start at around $ 50 per thousand, and you will be amazed at how quickly you can go through 1000 cards.) and will probably pay a modest (around $ 200 per month) desk fee, and you will certainly pay for your own Errors and Omissions Insurance (E&O).
There are places that let you keep more, even up to 100% of the commission, but remember, this is a competitive business. Nothing is truly free. One way or another, you’ll pay for the services of the brokerage.
As to “how long”. Most new agents never make it. More than half of all new agents never renew their licenses.
If you bring in any money at all in your first six months, you’ve done well. If you make enough money to cover your expenses in your first year, you’re doing better than many.
There’s no health insurance, no dental insurance, no retirement plan, and your taxes are higher than most, as you are considered “self-employed”, so you don’t have an employer paying half of the social security taxes for you.
Now for the good news. This business is fun. I get to drive around beautiful countryside, helping people in an important decision. It’s great, and I enjoy it.
But I sure am glad that I have my retired military benefits to help out.
- Comment Feed for this Post
When I went into real estate, my first time talking with a broker, he said if I didn’t have $ 10,000 upfront and a new car then there’s no use in starting into a real estate career. There are many costs you have to shell out.
From the start you’ll have 2 fourteen week courses to take and a test to pass, so you won’t even be able to talk with a broker for at least a year or more from when you first start schooling.
Remember that as a real estate agent or realtor you are an independent contractor. It’s like commission work. And you’ll need to bring in a sale or buy each month and maybe more than that per month depends on your broker. Usually Remax takes on only brokers to do the selling, so you’ll have to start out with another agency. If you are able to start selling right from the start your income might or could be around $ 30,000 the first year. Right now the market in some areas is full of foreclosures.