Cost of being an agent? (commission, Realtors, agreement, monthly fee)
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I'm considering getting my real estate sales license after we move this year. We are moving from Louisiana to Arkansas. I've always had interest in real estate and feel now would be a great time to get started being that my kids are grown and I have an open schedule. I was a wedding and portrait photographer for the past 9 years and did everything myself for running the business. This gives me experience in marketing myself and dealing with the general public. What I'm not familiar with it the cost involved. What are the yearly fees for licensing, continued education, and what are the monthly broker fees to work under one?
You might get a more focused response if you post this in the Arkansas forum.
The greatest wild card is the brokerage fees. There is a wide range in brokerage models, and the fees vary tremendously to reflect the details of a model. Regardless of the cost of affiliation, be certain to join a brokerage where you get the support and training you need to survive and prosper.
If you go to a brokerage that provides "everything," i.e., signs, cards, lockboxes, website, email, "free" printing, you may pay 50% of any commission generated, plus a monthly fee for a desk, plus E&O insurance, plus a fee for any leads the brokerage provides to you.
If you go to a flat fee brokerage, assuming there are some around, you may pay as little as $75/month and a fee per transaction from $250--$600.
You will probably get better training and support with the higher costs. Good training and support are not without cost, and you will need that training to get started right. The trap is the dependency on very expensive "free" stuff.
You will be trying to build a business. Wherever you land, make sure you "own" the contacts you generate, and can take them with you should you ever leave the firm.
Read any agreement presented to you closely. If the firm presses you to sign in a rush, you are in the wrong place from the get-go.
NAR, NCAR, and RRAR (Realtor associations) fees cost me about $500/year.
MLS costs me $50/month.
License is $40/year in NC.
CE is about $110/year.
You should know many costs of marketing and self-promotion already.
There are other things like cloud services, cell phones, computers, but you probably have all that sorted out.
All in all, it is a fairly inexpensive business to be in, as long as you make good decisions and reverse poor decisions quickly. And as long as you write business to cover costs.
Thank you so much, very valuable information. I will be doing my homework for the next several months until we are settled in our new home. I appreciate any advice given in this thread. I'm all ears.
My knee-jerk answer is to tell you to expect $2000 to get in the door to where you can actually write a contract. Add another $2000 - $2500 for marketing campaigns and strategic advertising and you will be on your way (be very judicious, you can suck up your entire budget in advertising).
A clean car is a must, although with GPS and kid safety seats, clients traveling in their own car is becoming more common. I know of one agent that rides a motorcycle.
Become a Facebook expert, sign up with Linkedin and Twitter. Strategically friend and connect with everyone you meet. Everyone will become important when you make you announcement. And, you will be light years ahead of other new Realtors. Also, when advertising, the neat thing about real estate, the only ones the know you are new are other Realtors. The general public really does not know how new you are to the business.
Get your license ASAP. The worse that can happen besides spending ~$500 for the course (and some companies will reimburse you the tuition from your first transaction) is you will come away with a greater understanding of someone's single largest investment.
My knee-jerk answer is to tell you to expect $2000 to get in the door to where you can actually write a contract. Add another $2000 - $2500 for marketing campaigns and strategic advertising and you will be on your way (be very judicious, you can suck up your entire budget in advertising).
A clean car is a must, although with GPS and kid safety seats, clients traveling in their own car is becoming more common. I know of one agent that rides a motorcycle.
Become a Facebook expert, sign up with Linkedin and Twitter. Strategically friend and connect with everyone you meet. Everyone will become important when you make you announcement. And, you will be light years ahead of other new Realtors. Also, when advertising, the neat thing about real estate, the only ones the know you are new are other Realtors. The general public really does not know how new you are to the business.
Get your license ASAP. The worse that can happen besides spending ~$500 for the course (and some companies will reimburse you the tuition from your first transaction) is you will come away with a greater understanding of someone's single largest investment.
Love the marketing advice. Although I did market myself as a photographer, it was a very different business and different clientele.
I'd love to get my license now, but I live in Louisiana. We are about to sell our house and we're looking to move either to northern Arkansas or southern Missouri. They are not reciprocating states so I don't want to do the course and get licensed and wind up living in a different state. Any ideas?
Love the marketing advice. Although I did market myself as a photographer, it was a very different business and different clientele.
I'd love to get my license now, but I live in Louisiana. We are about to sell our house and we're looking to move either to northern Arkansas or southern Missouri. They are not reciprocating states so I don't want to do the course and get licensed and wind up living in a different state. Any ideas?
Once you know if Arkansas or Missouri, buy the text book and start reading. I know many swear by online classes - I recommend actual classroom. Real Estate is a people business where the internet is a tool, not an internet business where people are a tool.
Once you know if Arkansas or Missouri, buy the text book and start reading. I know many swear by online classes - I recommend actual classroom. Real Estate is a people business where the internet is a tool, not an internet business where people are a tool.
A great classroom instructor who brings real personal experience and can answer questions can really help a newbie.
And, the coffee breaks and conversations also add something to the educational experience.
Once you know if Arkansas or Missouri, buy the text book and start reading. I know many swear by online classes - I recommend actual classroom. Real Estate is a people business where the internet is a tool, not an internet business where people are a tool.
I did a combo program where I could do both. I think I only missed one live class. I found them very, very helpful. The instructor had been an agent for 30 years and had so many great stories to share that really helped with understanding the material.
Thank you to all who took the time to comment, very much appreciated!
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