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Hi I was wondering how much Real Estate Agents make in NYC. I am moving next week, and going to be taking my 75 hour real estate course (yes they changed the hours on the 1st of July) and I was wondering how much can i make... i know everyone say is it is up to you, but seriously they must have an idea what I can make the first few months, even if it is probably only $500 or something, i would just like to prepare myself. A friend of mine said i should start in rentals, he said i should make a lot of money doing that (since i will be starting at the end of the summer who knows) And he said slowly move into sales. So any help on the salary part would be great. I would eventually like to rent in NYC as well, but if my salary won't let me, i would like to know now to make future preparations. thank you
That gets split however many ways depending on how you leased the apartment
you may split with broker, listing agent, co-brokers
the rental market is taking a beating as the finance industry is as well
however it can only get better
Amber, I think what NY Chutzpah is saying is that it's unpredictable at this point...BUT if you know approx how many listings you'll have access to with the particular company you're choosing to work for, and apply NYChut's formula, you should be able to make a guestimate. No one can predict your efforts and therefore your success, be it little or great.
Sounds like your friend knows something about the specifics...and maybe about your work ethic...so perhaps a safer bet, since you "know the facts" would be to ask him?
Real Estate is a tough business. Being new to the area it will be extremely hard for you because you do not know the areas and neighborhoods. Not to mention NY real estate is ridiculously competitive. It also depends on the individual and the office you will work in. You will need to invest money into your career....marketing, MLS fees, etc. You could easily be in the red your first couple of months until you get rolling. Be really careful and don't think you are instantly going to make $$$$. It's a difficult business to start up in. So many agents begin and never sell or rent a thing and leave for steady income after investing a lot of money in trying the business. Good luck with whatever you decide.
Forget about money in making in Real Estate in Manhattan unless you are a sleezy, underhanded shark who will do anything to anyone to get their money. It is the least respected job in the entire world you will get zero respect from anyone and be treated like garbage from your clients....because you are.
Real estate income is completely based on connections and contacts and most agents make absolutely nothing for the first 5 or 6 months until they have had time to learn the ropes.Unless you have a big savings account you will definitely need another job for a while during your break in.
Salary? Zip, zero, zilch, notta.
Commission? Yup, but only when you client comes through. And that only happens if the following does not happen: they are stolen from other agents, take the apartment behind your back, disappear completely after filling out an application, etc. Rental agents have a tremendous amount of trust placed on their clients to come through. I worked for three years as an agent (and now do it part-time) and consistently had to rely on my other source of income to support myself. There are a lot of established agents and you will have to find your niche and clients. Make sure you have enough expenses saved for at least 3-4 months. As well, most agents charge 10%-12% (with the exception of co-brokes, which you will learn about). If you try to charge 15% on an experienced renter, chances are they will find a way to circumvient you and rent the apartment or go with another broker who is offering a lower fee.
As well, please do your due diligence. A lot of companies may try to pitch you at your school, especially at NYRIE. Ask them about their listings, any hidden percentages that they take off for certain landlords, training programs and how long you will stay at a certain percentage, whether or not you can access the listings database from home etc. If they try to go back to their pitch and don't answer your questions, get up and leave.
Real estate is a great experience, and you meet a lot of people, but it is a hard business as well. Shows like Selling NY and Million Dollar Listing make it look very luxurious, with its occasional hard times. It is hard 80% of the time when you are working with the client because you can loose them at any time, 10% hard when you are previewing because the apartment that you are taking pictures of to advertise could have already rented and 10% good when you collect your commission check. Then the cycle starts again. I would definetly take your friends advice and move slowly into sales, but as quickly as possible. For that, you need about 6 months of savings, so you can do rentals on the side.
To finally answer your question, I made $1600 my first month, but they were both OPs (you'll learn about those), so I did not receive them for another 2 months, followed by a dead month where I made nothing, followed by a great month where I did about $5400. You'll have months where you'll make $5000, and months where you'll make $0, or worse, -$100+ because you owe your company fees, plus advertising costs etc. Save the money you make and DON'T FORGOT TO PUT ABOUT %30 OF EACH CHECK ASIDE FOR TAXES.
I see this post is from 2008, so obviously my post will be for anyone in the future that wants to go into real estate.
I'm taking the course now during free time and some days off. I'm doing it not because I'm convinced I'll go into it but more as a plan B type of thing in case my job goes or so on.
The 75-hour course is pretty straightforward stuff, some common sense and some basics of real estate law.
As for being an agent, selecting the right broker is the key. From my experience of hearing the pitches from the various brokers, I would not pick one with any desk fees. Often, those are the ones promising 90 to 100 percent of the commission. Think about it, if a broker is keeping 10 percent or less of your commission right off the bat, they have to make some money off you.
Also, keep in mind that in virtually all cases, you're a 1099 employee, which according to IRS Section 3508 (a)(b) makes you an independent contractor.
The one thing that I do wonder about is work-life balance. I'm guessing it's up to someone based on how much they want to make, but I might be inaccurate about that fact.
good luck finding a RE company to hire you/ represent you
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