I am studying to be an agent. I understand that most agents are payed 100% commission. Do you typically get any kind of base salary against a draw? Should I expect to start working 50 hours a week without seeing a dime? This does not seem legal. Any input on this subject?
2007-05-13 10:30:01 · 6 answers · asked by ted 1 in Business & Finance ➔ Renting & Real Estate
I have been a real estate broker for 30 years and my heartfelt advice is to think about another career. Our profession does not need any more crybabies.
The average real estate agent in the first year earns about $20000. Out of that will come approximately $5000 to $6000 in expenses and costs.
Thought you were going to get a real estate license and someone would deliver your Mercedes within a week.
Again, GET OUT NOW!!
2007-05-13 15:19:30 · answer #1 · answered by loandude 4 · 0⤊ 0⤋
My advice: Don't become a realtor. If you are already concerned about the work week, this isn't for you. I have gone a month straight on several occasions without a day off. And I'm not talking about taking a few phone calls and calling that a work day. Clients expect you to be available to show houses when they can go, typically nights and weekends.
Yes, you will be 100% commission, with no base salary. Some agencies will advance you some money when you start, but you'll be expected to pay that back when you are closing transactions.
Yes, you should expect to be working 50 hours a week and not seeing a dime. Even if lightening strikes and you sell something your first week, unless it is a cash deal, it will probably be a month before it closes.
And my input if you are worried about the legality of 100% based hard work, this is not your field. Sorry.
2007-05-13 11:27:56 · answer #2 · answered by godged 7 · 1⤊ 0⤋
You're an independant contractor, not an employee so there's nothing illegal about it. I don't personally know of any companies that have any kind of a draw but I have heard of it so they're out there somewhere.
50 hours a week? HA!!!! Try 80! We all had to do it in the beginning. You pay your dues and if you're good you can relax a bit in about 3 years.
Make sure you have enough money saved up to go without any income for at least 6 months. It doesn't take everyone that long but it depends on your market.
And, you'll be spending a lot in the beginning. Things like local, state and national dues, lockbox key rental, business cards... The list goes on.
It's tough going but it can be an extremely rewarding career. Good Luck!
2007-05-13 11:38:06 · answer #3 · answered by mycornerofbrickheaven 3 · 0⤊ 0⤋
You can always work for brokers who pay a salary instead of a commission. It just depends upon the employment agreement you reach with the employer/broker.
Of course, I've never heard of an agent whose salary wasn't 100% commission. Sounds like you are in the WRONG business.
2007-05-13 11:22:18 · answer #4 · answered by Querious 3 · 0⤊ 0⤋
There are a few firms that now pay a base earnings, however there are only a few of them, and they do not draw in the highest revenue persons. On best of which, if there's a base earnings, it might pop out of the fee that the brokerage earns, which might imply the commissions might be plenty smaller on a according to sale foundation. The excellent means of creating the sort of scheme paintings is for the businesses to cost the dealers and shoppers a price instantly, without reference to whether or not the estate sells or no longer. Most dealers wish to pay for outcome, so there's plenty of resistance to this variety of process. And sure, I've appeared into establishing an company that works precisely that means.
2016-09-05 18:53:56 · answer #5 · answered by ? 4 · 0⤊ 0⤋
It's up to the broker. Nothing illegal about it if you're on commission. Some allow a small draw against commissions but not all do.
2007-05-13 10:36:34 · answer #6 · answered by Bostonian In MO 7 · 0⤊ 0⤋