Careers in Real Estate

[Precious Thompson]

Considering studying for my Real Estate License to become an Agent can anyone tell me about there experience as An Real Agent and how much cost is involved ?

[Bill Gulley]

If your are going to be a Realtor as an agent, you'll have all or some of the following:

RE school and testing, set aside about a grand.

State license fees, vary, say $100 with your background investigation...depends.

Annual continuing education (some are semi-annual) $250 or so

Realtor dues, varies, annually $250 includes magazine

Office fees, varies greatly depending on commission splits, usually covers office support, copying and desk and chair starting off if you're lucky, say $250 annually but could be thousands in you're a 100% commission agent.

E&O insurance, often on a per deal basis could be covered in office fees or like $20. Depends on several factors like how big the office is and sales are.

Coffee fund, another 20 bucks monthly

Office meetings, parties, birthdays, special occasions you're rather obligated to contribute to for office politics....$200-$300 a year, your choice.

Advertising expenses for your listings, per deal, could be $50, could be $500 goes from a Homes Magazine to your company's weekly TV show.

Business cards, note pads with your name, stamps and office supplies, varies on activity but count on $500 annually. Mail could be a huge expense depending on what you do. If you have to buy your own contracts, getting the full functional load, probably another $500 annually.

Your accountant and tax guy, $500 should cut it for small returns.

Entertaining clients for coffee, lunch, welcome home gifts, may be $100 a month really depends, but small residential deals, you might get by that cheap.

You may need to eat out too.

You pay for your own gas, car maintenance and insurance is higher if you are required to have a commercial rider for business.

You might want to buy some clothes too, depends on where you are, what the broker requires and what is expected in your line of work.

Education, you should do more than the mickey mouse continuing education stuff, attorney visits, that's on you too.

Now, you can cut many of the expenses down if you just "hang your license" at some office, go part time and don't show up at the office, but can't cut them all...even if you can as a new agent.

So, it costs you! My estimates may be a little low to years past.

Before you become an agent, or consider it, I suggest you sit down and write down the names of all the people you could approach about real estate, if you have more than a hundred names, consider it. 80 to 100 names, takes more work but can be done. If you can't think of more than 50, go make friends first.

These numbers don't mean you can't go do deals, it means you have a beginning inventory of names to draw upon to cover the expenses of being in the business. If you have the money to cover costs initially to get started, go for it. :)