Do you need money to start working as a real estate agent?

Question

Do you need start up money.?

Answer 1

That or enough of a regular income to pay for your expenses, and there are only 24 hours per day!

Answer 2

Depending on what state you are in. Most states require you to take a pre-licensing education course. That will cost $200 to $400. Then you will need to take a state exam which is another few bucks but not much. Once you get your license, you will need business cards, supplies, work clother and a decent means of transportation. For a couple thousand bucks you are in. But that is the smallest. Now for the real cost....and beware if you are not prepared for this. You must have staying power and prepare to be without income for several months.

When you first start, you have no inventory. So you go out and sell someone else's listing. Suppose you get real lucky and sell something the first month out, it will still take about 60 days for the sale to close. By the mean time, the car payment and mortgage is due. Currently, the market has dropped in double digets. Free ride is over.

To be successful in this business, you will need inventory. You may get one soon enough. But one does not make you rich and famous. You need 10 to 15 depending on the average price of your market. That will take months. Then you will need to sell and close them. That will take more months. I know. I trained probably several thousand agents through my career. You should plan on not having income for 6 months to be safe.

Many brokers are so desperate for agents they will tell you anything you want to hear just to hook you. Truth of the matter, you need to go at it full time, full speed and well funded. Having said that, some of my former agents make anywhere from 3 to 4 hundred thousand to well over a million dollars a year. However, these are true professionals and the survival rate is less than 20%. Hope this helps and good luck.

Answer 3

Assuming you are not talking about school and license fees, you will need money for cards, signs, Realtor's fees. A nice car and clothes are a plus, since prospective buyers and sellers want to work with someone they perceive as successful. You'll get out of it what you put into it. You also need to have enough money to pay you own bills while you are waiting to earn commissions (figure 6 months). Be prepared to sweat it for a while. It's good to have another income in the household.

Answer 4

You should start as a sales persons, working under an agent to learn the business.

Answer 5

even im a real estate agent i also started recently yes u do need some capital coz u have to advertise urself in the newspaper then ppl wil know abt u then ull start gettin customers.

Answer 6

Prepare to spend a lot of money for gasoline; you'll be driving all over town showing prospective buyers certain homes. That also means paid lunches by you.

Answer 7

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 a year 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 people

Keller 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. [e-mail]

BEST of luck with your new career!

Answer 8

Yes, you will probably need to pay fees to be on the multi list, buy signs, business cards etc. Not to mention phone etc. Good luck!

Answer 9

Just like in any business you do. License, computer, office, furniture and advertising would most common for you to start.

Answer 10

yes, u need money to make money