What are the expenses of a new real estate agent.?

Question

I want to know the out of pocket expenses realty companies expect you to pay when just getting started as a sales agent.

Answer 1

new? advertising, mailers, signs web sites all cost money, if you go with a franchise usually a 50/50 split until you reach a goal the franchise has set for you. depends on just how much you want to market yourself and how. there is no set price. 5000 is a good starting price which does not include a decent vechile to transport, 5k is JUST FOR advertising. good luck--being new is only short time .

Answer 2

Real Estate Agent Expenses

Answer 3

1

Answer 4

The biggest one is going without a paycheck till you sell something . So if you started Real Estate today and sold a house in 2 weeks . Till the house closes ( 30 to 60 days later ) without a paycheck . As far as what expenses business cards , cell phone , clothes , alot of gas , any advertising you do , real estate school , real estate exam , maybe E & O insurance (about $350 a year ) , MLS service ( $50 a month , Realtor trademark fees ($350 a year ) laptop maybe a blackberry

Answer 5

It depends on which agency you go with. When starting out, go with a company like Prudential or Coldwell Banker, who usually give you a free desk, phone, training and support. You won't earn as much commission as with the companies who charge desk fees, but you can switch over to those companies after you have established yourself with a repeat-business client base. The amount of the commission split between you and your new broker is negotiable. Your trainer is probably going to get a percentage of the first few deals, too, for holding your hand throughout the transaction. I refused it, I had escrow & title experience. With no such experience, you will need the guidance. Once you are doing well, go in an re-negotiate your split. Brokerages where you pay desk fees tend to not have the kind of support a new agent needs.

As far as other expenses, you will need to join the National Association of Realtors and your State Association of Realtors and your local Mulitple Listing Service Board of Realtors. you will need a good laptop with your own wireless card, about $70/per month, plus a good celll phone plan with lots of minutes. Don't get cheap on using that phone. Communication is your friend! Be ready to spend on a PDA, too. Bundle the services and make sure to flash your NAR card for a discount. If you go with a Prudential/Coldwell Banker type, you will have access you your own web site. It costs about $50.00 per month and is one of your best friends. It comes with a "back end" for data base management, flyer/postcard design, etc. If you can set aside $1,000/mo. for getting your name out there - color ad announcing you are open for business and eager to work for them, then so much the better. Don't waste money on personalized pens and key chains and chochkies; refrigerator magnets are good, though. If you don't have conservative, professional looking suits, shoes, and dresses, then go get some. Basic Black, Navy, Red, etc. Get the best quality you can afford, even if you end up wearing the same dam**ed thing every other day. You'll get more later.

Above all, go to the office each and every day and keep your ears open. You will learn a lot. If you have a trainer who is being paid by you from your deals, ask most of your quetions to her/him but don't be afraid to ask the people who are successful if in a jam. Don't hang with the loosers, pick some top producers to listen to.

Answer 6

on the same time because the criteria decision really from state to state, yet that's the overall public of what you opt to do. Graduate extreme college. you're required to have a factor or a GED Take a pre-license type from a actual property college approved by skill of your state. Many brokerages provide the kind, and it prices between $2 hundred and $800. the kind can frequently be finished in 2 weeks, or spread over an prolonged volume of time. Have a criminal free criminal record (even inspite of the undeniable fact that some states actual property commissions may also help you request a waiver for some acts, mutually with DUI) Take and pass your state's revenues associate attempt. good fulfillment!

Answer 7

Figure $500 per month at a decent place, PLUS advertising. More if you're a broker working on your own.

Answer 8

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 9

advertising is everything!!