All Forum Posts by: Mel Locke

Hi and welcome!

This is a great community, filled with very knowledgeable people and people like me who are here to learn.  Have fun reading and learning.

Best of luck with your plans, finding BP is a great way to realize them!

@Justin Morris, the best way to think about becoming a real estate agent is that you are starting a business, I forget who said that on this board but it was solid advice.  You pay the brokerage, so you are interviewing them, for the most part most of them want more agents as it increases their ability to make money, use the time to see if you would be a good fit and how much support you need and how much they are willing to give. 

Like any business there are a lot of startup costs and like a lot small businesses there is a high failure rate.  A lot of people can't live without income coming in for long stretches of time, especially in the beginning.  There are pros and cons to starting off doing it part time.   For now hit the google hard and keep researching, also check into your local library I am sure they have books and maybe even ebooks or audio books you can borrow from the comfort of your home. 

Thanks for all the great replies!

While I personally would like to think I would never need E&O coverage, incorporating would protect your assets in case you maxed out your coverage.

In WA the state wants a designated person who lists their license with the state. 

If anyone is interested:

Taxes:

https://joinremaxaction.wordpress.com/2013/02/11/r...

General reasons to incorporate:

https://www.incorporate.com/real_estate.html

Error and Omissions insurance only covers so much and a quick google search has shown a variety of reasons why it might be a good reason including potentially lower taxes (I am going to need to research that more).    Also, you can't sell John Smith Real Estate Agent, but you could potentially sell Premier Real Estate, maybe take a new agent mentor them and then sell them the holding.  

I know that Keller Williams encourages brand building and I have seen plenty of for sale signs that you have to really look to find the KW logo, but I don't know if they or other brokers draw the line at incorporating.  I am of course trying to find my state's specific regulations, but I thought I would throw out the question to the BP community.  Any insight would be greatly appreciated. 

J Beard, sorry if I wasn't very clear, I was just putting the cost of working with a broker to the side.  If I want to even further complicate the issue, WA has gone from calling agents salespeople to brokers and brokers to managing brokers.

The monthly cost of working with a broker is going to be whatever you negotiate, some have high desk fees, others take a big cut, there are pros and cons to all of it.  The purpose of this thread was to get an idea about budgeting for those other things, whether it's marketing like Russell mentioned or car washes like Sarah posted.

I like how Russell compared it to a small business, it really helps to think of the start up investment and the ongoing expenses that it takes to be a successful agent. 

Thanks again to everyone that posted!

Thanks Sarah!  My family down in CA can get a car detailed for a fraction of the cost then up here in WA.  I am guessing the first couple of years, I will have to put some sweat equality into that. 

Excellent points!

Also, good to know I wasn't being delusional, I was aiming towards $10,000, a number that is easier to swallow knowing I would already have a listing and I would have a couple who would hire me as a buyer agent.  Just like you, I would have some side income coming to cover life expenses. 

Thanks Russell!

It sounds like you are a more independent agent.  I was talking to a new agent that works for William & Keller and he didn't give specifics, though implied that he had a pretty big split, but let the brokerage handle most expenses and even most of the closing paperwork. 

One of the big fears going into this profession is running out of savings. 

I know that it can vary widely depending on how the agent and their brokerage do splits and desk fees. I am interested in the other costs, like membership fees (NAR I am guessing is a requirement), MLS access (or is that through the brokerage?), is there some kind of insurance in case a deal goes sideways, (Realtor malpractice?). How about taxes, they are due quarterly how does a new agent even come up with a number?

BP has a Pro section and there are no shortage of other websites geared towards agents offering a variety of services, are there any other big sites that draw a lot agents?

I know that there are endless things you can spend money on, I am just looking to see what the average, if that is even a thing, agent costs are.  Any insight would be great, I am in WA, but would be curious to see if it varies greatly between states.

Thanks!

Go idea, I will do some follow ups. 

Thanks again!