After that I pay for E & O insurance directly out of each check $77 per transaction. We have no desk fees or transaction coordinator fees or marketing fee and we get a min of 70%.commission split. I work out of the home and it keeps costs down and makes the career affordable given the times. Remember to to keep all receipts and be diligent about logging all your biz mileage in a log. Donna L Meyers Connect Realty
PS I wish I were in HI with you!
The cost of being an agent is ongoing as it really comes down to running your own business with all business associated monthly expenses. The main financial concern is you have to pay those business expenses from your own account/pocket. The sooner you start closing deals in your career and the better chance you have to stay in business.
As you are starting you might have extra expenses than just those monthly business expenses (one time front fees for various services/memberships, home office supply and hardware, For sale signs and riders, business cards, stationeries, Supra, etcâ€¦).
Monthly cost is really dependant of your savings and how serious you want to invest in your new career. Personally, I generate between $1k and $2k in monthly operating expenses (not including my salary).
Your first year will be quite intense from taking classes and learning about the "how to" parts of real estate sales to developing your marketing and sales strategy.
In short, you will be looking at about $2,000 to $3,000 plus your regular living expenses.
Costs will also depend on the brokerage you sign up with (there are a lot of different ways to split the pie, but every brokerage has fixed and variable costs that must be covered to keep the office open). Some use a flat monthly fee and others might use a commission charge on each sale. There are many variations, but the thing to remember is there is no such thing as a free lunch.
Good luck in your new career. I hope this has been of some help to you.
Now, I am seeing experienced agents close 2-3 properties a year (that used to do twice that number). Let's say that they sell for $500,000 on average. That's $1.5 million. Your broker gets $45,000. You get 60%, or $27,000.
If you survive, you will close 4 or so in the first two years. Then you will catch up and be at zero profit/loss. It generally takes 2 full years to get up to speed.
As they say in music "Don't give up your day job." Every time someone asks me about becoming an agent, I advise them not to do it. If you decide to go ahead, you need to have an income of at least $50,000 in another job to survive.
b) Car insurance
c) Car maintenance
d) Cell phone
e) Lap top
f) Air card where you are mobile with clients quick access to info.
g) Local board fees
h) Key pass purchase and yearly fees
i) Continue education annual classes mandatory
j) Broker monthly desk fees
k) State license renewal fees
n) Lock boxes
j) Website hosting
l) Marketing fees
m) Central Showing Service if you are listing agent
n) Broker splits
NOTE: Majority of time when you 1st start to work with client IF IN SALES it can take 90 days for that closing, however NEVER SPEND THAT MONEY till you have closing completed... lenders at times decline loan right up to closing ... OUCH... you just spent money !
Hope that assists