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Old 10-22-2010, 01:05 PM
 
354 posts, read 620,906 times
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So, I have decided to try to hack it in Austin a little while longer (especially after I got accepted to UT for the computer science program!), but I also want to go for my real estate agent license too (you can't have enough degrees or licenses under your belt in this economy). But before I go, I want to know how the market is for real estate agents in Austin. It seems to me that the market is overcrowded with real estate agents, even though Austin is building and opening more apartments like crazy!

The only jobs that I see new real estate agents getting is apartment locators and most of the time, the agent is forced to try to market ran down complexes that are stuck in the bad part of town no one wants to live in.

What I want to know is, what the earning potential for real estate agents in Austin. Is it overly crowded (the market)? How much commission can you get for renting out a single apartment/home? What are some good real estate brokers/agencies to work for? Thank you all in advance.
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Old 10-22-2010, 02:05 PM
 
Location: Austin, Texas
544 posts, read 921,370 times
Reputation: 145
let's do some math --on home sales and lease transactions

during 2009, there were 19,082 home sales (or 38,164 "sides"-- buyer agent and seller agents) recorded in the austin metro area -- if you consider that there are (at least) 6,000 licensed realtors in the austin area, that translates into an average agent getting 6 1/2 "sides" or transactions per year -- with an average home selling for $200,000, that translates to a volume of $1,300,000 and a gross commission paid of $39,000 before brokerage fees, abor fees, marketing costs, misc expenses -- big bucks huh?

most leases pay 30% of the 1st months rent so, at a SWAG of $300 per apartment/house lease, to generate an average sales agent income of $39,000, it would take 130 leases -- that's 10 a month, or 2.25 a week -- don't forget that the broker is going to take some bucks out to cover marketing, lead generation, and office overhead --

on both, you've got to take out income tax and fica as well --

sure you want in on this moneymaker?????
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Old 10-22-2010, 02:33 PM
 
Location: Austin
2,522 posts, read 3,802,398 times
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Roy, if "this moneymaker" is such a losing proposition, what are YOU doing selling real estate?
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Old 10-22-2010, 02:39 PM
 
Location: Austin
4,465 posts, read 8,467,534 times
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Quote:
Originally Posted by ROY DUBOSE View Post
if you consider that there are (at least) 6,000 licensed realtors in the austin area, ...
There are actually over 9000 agents in the area and members of ABOR...
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Old 10-22-2010, 02:49 PM
 
Location: Austin
2,522 posts, read 3,802,398 times
Reputation: 677
So I take it one more(this poster) would be the straw that broke the camels back(9001)?

I hate to break the news to you both, but there will be a huge run of new real estate licensees the next 12 months or so, as so many jobs are being lost in Austin, and so many relos can't find jobs that pay a living wage..real estate is that old stand-by that offers hope, and a very easy entry...look for prob at least another 1000 new licensees the next year or so..I see these requests about becoming an agent all the time on CD, and don't recall seeing them at all before....

That being said, if you have a strong following, you have no need to fear it...if you are struggling to make a following yourself, you have much reason to fear it..
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Old 10-22-2010, 02:57 PM
 
Location: Austin, Texas
544 posts, read 921,370 times
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it's a reality check for those that think this is easy pickins'

that's one of the reasons i get fairly defensive when folks want to negotiate discounts on commissions or switch agents at a whim -- providing guidance is a huge responsibility to assume for folks that do two or three real estate transactions in the LIVES when we do 'em all the time AND have extensive prepratory as well as continued training when we're to "set loose" to roam the market --

this industry fits my personal skill set and most, if not all, of my personal "best job criteria" -- statistically, there are 50% making more than the average and 50% making less -- along with my partners, we're building a business with quality agents serving satisfied clients --
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Old 10-22-2010, 02:58 PM
 
Location: Austin, Texas
544 posts, read 921,370 times
Reputation: 145
Quote:
Originally Posted by FalconheadWest View Post
There are actually over 9000 agents in the area and members of ABOR...

i was being conservative on purpose

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Old 10-22-2010, 03:08 PM
 
Location: Austin, TX
727 posts, read 1,003,059 times
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I imagine a good portion of business comes from word of mouth. How do new realtors get clients?
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Old 10-22-2010, 03:18 PM
 
354 posts, read 620,906 times
Reputation: 222
Quote:
Originally Posted by ROY DUBOSE View Post
it's a reality check for those that think this is easy pickins'

that's one of the reasons i get fairly defensive when folks want to negotiate discounts on commissions or switch agents at a whim -- providing guidance is a huge responsibility to assume for folks that do two or three real estate transactions in the LIVES when we do 'em all the time AND have extensive prepratory as well as continued training when we're to "set loose" to roam the market --

this industry fits my personal skill set and most, if not all, of my personal "best job criteria" -- statistically, there are 50% making more than the average and 50% making less -- along with my partners, we're building a business with quality agents serving satisfied clients --
Yeah, I kind of already figured it would be a hard business to get into; thank god I have a business degree and Internet marketing skills (though I know it takes more than that to make it in this field, I'm sure). Negotiating discounts on comissions? Yeah, it seems like a hard business to get into. Apartment locators seems to have the worst, especially when they are assigned to market run down apartments on some of the worst areas in Austin. I see so many desperate apartment locators on Craigslist, lying, scamming....doing anything they can to close the deal.

I guess the real money comes in when you actually become a real estate BROKER instead of just being an agent. Can you tell me what is the average monthly salary for someone who is just starting in the field?
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Old 10-22-2010, 03:21 PM
 
Location: Austin, Texas
544 posts, read 921,370 times
Reputation: 145
Quote:
Originally Posted by sinking View Post
I imagine a good portion of business comes from word of mouth. How do new realtors get clients?

most newbies go to work for large teams whose team leaders are responsible for mentoring, training, and lead generation -- in exchange, the agent pays the team leader (may or may not be a broker) a percentage of the commission (usually around 20%) - the broker also charges desk fees, transaction fees, phone fees, copy fees (you get the picture) and a percentage of the commission as well (often 10-20%)


all cards on the table, in order to be a new agent taking leads from a broker/team leader, they will pay out 30-40% of their commission before seeing the first dime

think about it -- on a $150,000 house, the commission of $4500 (3% of the listed commission) becomes roughly $3000 which the agent uses to market himself, pay his expenses, and take home some cash to Momma --

effective internet marketers can generate leads themselves -- also, if one (such as i) has identified a specific niche market and can tap that market effectively, then the number of transactions WITHOUT broker/team leader splits increases and splits are significantly smaller returning more commission dollars per transaction

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