is real estate agent the way to go??

Question

If I help sold 3 houses a month ranging between 200 and 250 grand a month and received 5 to 15 percent commission on each, roughly how much money does that give me monthly?? Note this question is specifically for real estate agents.

Answer 1

Your commission as an agent usually only ranges between 2.5% and 4% of each house, since the total commission (typically between 5-8%) has to be split between the selling/listing agent. Then, this has to be split with your broker. So, let's say you sell one $200,000 house with a 5% commission, total commission is $10,000. Your SIDE will be $5000, and the amount that goes in your pocket will be about $2500, assuming as a new agent you will have a 50/50 split with your broker.

This might sound great, to make $2500 off of just one house, but you have to carefully consider: where are you going to get these people who need to buy and sell houses? Trust me, no one just walks up to you (especially as a new agent) and says, hey, can you sell my house? You have to spend money and time prospecting and marketing. There is a LOT of competition between agents, and don't be surprised when at least one of your clients gets "stolen" by another agent. You also have to remember that typically a closing can last 30-60 days, meaning when you sell the house, you don't get paid for it for months, and you still have to carefully hold the contract together to make sure the closing still happens. Not to mention, you will find yourself working with a lot of "tire kickers" who will drag you all over the place to look at houses to never actually buy anything.

Factor in gas mileage prices, office equipment, advertising, marketing expenses, mls fees, E & O insurance, and licensing requirements for your state, you very well may actually LOSE money your first year or so.

I'm not saying its impossible to come out ahead, but in order to do well for your first year you need to already be established with people who are able to buy/sell, have at least 6 months of savings, be agressive, and not afraid of rejection. I don't mean to be depressing here, but I think a realistic viewpoint is important, also. In my office alone I have seen several people come in thinking they'll be million dollar producers, only to drop out in 3-4 months, wasting a lot of time, energy, and money in the process.

You might also want to check out this site:

www.agentsonline.net

Answer 2

Here’s the real deal.

I’m a licensed Realtor® in the state of Arizona and I have been so only six months.

I’ll give you the skinny based on what I went and am going through based on what the regulations are in AZ.

First you need 90 hours of classroom instruction, and you need to pass the exam that the school gives you - cost: $400.00

Then you need to take the exam the stat gives you - cost $90.00

Then you need to apply for your license with the real estate board – cost $110.00

Then there are dues for an association of Realtors® which you will have to do most of the time cost - $369.00 due annually

MLS fees - $176.00 due annually

Lock box key - $156.00 due annually

Total Startup fees - $1125.00

Now comes the fun part.

You will need a place to hang your license. Depending on the Brokerage and their practices, there will either be a split of your commissions or they will charge you a flat fee every month.

You will need to do some prospecting, to get a client base and create some business, as you will not be getting a check every two weeks. You will only get paid when the deal closes escrow and the broker has deducted any fees that you owe them.

There will be other costs along the way as well, signs, advertising, business cards, and others

I’m not saying don’t do it I just want to let you know that it’s very hard and very frustrating when you get started. You will need to find a firm that will help you through the very difficult ramp-up period that will last 9-12 months (at least that’s what I was told).

On an up note you get to make your own hours, you don’t come home smelling like food, and when you do close a deal you get a righteous check. I am in the process of closing a deal on a $360,000.00 house and I figure to bring in about $6000.00 now I have to go and find more business.

Good luck!

Answer 3

The typical real estate commission on a house is 6% - 3% to the listing agent, 3% to the selling agent. But you don't keep all of that. Most real estate agents work through a brokerage and the majority of the commission goes to the brokerage. The newer you are in the business the smaller the cut you receive. It is all dependent on which brokerage you work for - Remax, Coldwell Banker, Century 21 - etc.

Answer 4

When you are ready to sell your home and move to another, you may face a conundrum experienced by other homeowners: Should you work with just one REALTOR® to sell your house and to buy another, or should you split the transaction between two REALTORS®? Deciding whether to align with multiple agents can be a big decision.

While there are pros and cons for either choice, there are a few questions you must answer before you compare your options:

Where are you going? If you’re making a long-distance move out of the community where you live now, then you’re almost certainly going to use a REALTOR® in your new neighborhood to help you buy a home. REALTORS® must be licensed by their state, so your current local agent may not be able to work with you someplace else. In addition, it’s important to find a REALTOR® with local market knowledge to help you find a home that meets your needs, fits your budget and is priced according to the area’s home values. You can always ask a REALTOR® you know and trust to make a referral for an agent in another community.
Does your agent have equal expertise on both sides? While most REALTORS® can represent you as a buyer or a seller, many specialize in listing homes or working with buyers. An exclusive buyer’s agent only works with buyers and will never represent sellers in order to avoid any potential conflict of interest and to provide the maximum advocacy for buyers. Even if you are making a move within the same community, you should check out your REALTOR®’s level of expertise on each side of a real estate transaction so that you have the best possible representation on each end.
...........Bendigo rental manager

Answer 5

Generally, a real estate commission on a residential sale is around 6%. (3% to the seller's agent, 3% to the buyer's agent) The brokerage you work for is going to take anywhere from 20% to 50% of your 3%. So if you sell 3 houses with a total value of $600,000, your take will be between $14K on the high side and $9K on the low side.

Answer 6

I have never heard of an agent earning more than 6% on a sale of a house, and the normal commission is 2-3%.

Most 1st year realtors earn less than 20,000.00. Go to the nat'l realtors assoc web site for more stats.

Answer 7

What is your point? 15% never have seen this ever. The average is 6% split between two agents and again split at times with the office where the agent works.

Answer 8

IDK but my bro is a real estate agent and is having a bit of a hard time to get people to know his career if you can get a group of people to realize that your a real estate agent..then go for it cause word of the mouth is very useful