That is the tip of the iceberg. You will spend about $1500 or more on education, then there is a fee to take the test, there are fees to join the Nationa Association of Realtors and the Texas Association of Realtors then there are fees to have a Supra key (what gets you into the listings), and seperate fees for the MLS for listings and for leases, then you spend money on business cards, letterhead, signs, and promotional items, the Broker that holds your license will take a percentage of everything you sell and may or may not charge transaction fees and desk or phone fees. Then you need to spend a couple thousand on a website so that clients can find you. I spent about $20,000 last year on my business.
Then as a new agent you may or may not sell anything for the first 3-12 months. I would say you need to have saved a minimum of 6-12 months of income before you think about this business. I have seen many agents try real estate thinking it is quick and easy money, but it is not. Right now there are many Realtors leaving the business as the number of transactions has gone down from last year. I suggest you proceed with caution. If your serious about becoming a Realtor call me and I will get you a meeting with my Broker. I wish you the best of luck!
You have gotten some good answers. Have they helped you to decide to move forward with your dream of becoming a realtor? If you need more information or want to discuss it in more detail give me a call. I am happy to help.
(Dear Jackie, Thanks for the nod of approval. My MO is to be straight forward and honest, as the truth always comes out. Thihs business can be challenging, but it is its own reward. I could not imagine doing anything else.)
Betina Foreman - Realtor
Keller Williams Realty
Even though I actually laughed in agreement with most of the comments given (especially Doug Stewarts') because they really are true and man it can be VERY intimidating with everything that is required of you and the thousands of areas that you need to be on top of to make this work... BUT it can be done and it is still done ALL the time! I am only in my 3rd year as a Realtor and I have been very blessed by God to be producing in the top 20% of my large and competitive San Antonio market. My point is.. it can be done, but I will also point out that my operating profit last year was very nill and still hold some capital expenses that I don't see going away in the very near future.
I absolutely love my broker, my office, my team leader and our culture! I know that it can be different for where you are, but I'd love to talk to you further if you are more serious about becoming a powerless contributor to this economy! - took that from Doug.. it was a good one!
I love it
Ask the broker you intend work:
Budget for following:
Broker office fees
Pass key aka supra
Centralized Showing System if you obtain a listing
State annual license fees
Realtor name tag If you opt purchase this
Name a few expenses
~ National Featured Realtor and Consultant, Lecturer regarding Credit Repair, Mortgage Loan Officer
ALthough I am not selling or representing buyers in your area. On top of the initial fees for MLS there are quarterly fees you will be accountable for as well. You will also most likly incure desk fees or printing and marketing fees. I would not expect to be out of the red until at least your second year. The old saying that 20 percent of the agents do 80 percent of the work and sales is true. I dont mean to discourage you, I just want you to know it is a LOT of work. I am a top producer for my office and devote 60 plus hours a week. The market is starting to recover, however it will be tough. If you have savings or another job you should be ok. If you have another job, you wont be able to devote the time required to do well. I would recomend speaking with an agent who is doing well in your area and pick his or hers brain. Once my previous client found out what was going to be involved financially and physically she decided that the timing was not right. Good luck!