AZ Realtors I Need Your Input (Scottsdale, Fountain Hills: sales, real estate market, insurance)

[dessertlover]

Okay, I just read on another thread that the AZ real estate market is heating up. I just got my real estate license. Haven't chosen a brokerage or anything yet. If I put in the work, can I make 6 figures my first year selling houses in the Scottsdale and Fountain Hills areas?

I am hearing of multiple offers being put on houses in the 200k-300k range on the day that they are listed. Is this true? If so, what would stop agents doing a decent amount of work from making 6 figures a year right now selling in these areas? I'm not stupid, not one of those bobble heads with a high school diploma trying to get rich quick. I'm highly educated. This would be a second career for me, and I need to know the real deal here. My current career would provide more stability, but a career in real estate would afford me the opportunity of unlimited earnings.

[asufan]

If you are the kind of person that is outgoing and makes friends easily (and has a large network of friends/acquaintances in the area that are looking at houses) you can probably do it, but it will be tough the first few years. I have been a Realtor since I was in college and basically use if for my own transactions and for friends and family (I split the commission with them). I probably average about 2 deals a year that are not my own and refuse to do listings or waste entire weekends showing houses to my friends, so it's a side thing. I think the easiest way for a new licensee to make $100K is in new home sales, since the buyers come to you and you do not need a built in list of referrals and past clients. Getting into new home sales is likely easier than you think, as they like to mold salespeople for their organization rather than have to re-train someone that has their own way doing things.

[ajonesaz]

You will need to average 6-8 house closings a month in the 200k range to make six figures.... it's not going to happen

[asufan]

Originally Posted by ajonesaz

You will need to average 6-8 house closings a month in the 200k range to make six figures.... it's not going to happen

You would only need 2 closings/month in the 200K range ($200,000 X .03 = $6,000 per sale) ($6,000 X 2 = $12,000/month) ($12,000 X 12 months = $144,000 income). Obviously a broker will want his/her cut, one could be at a place where the broker takes a $500 fee per transaction or a place where a broker takes 10-20% and still make 100K. Not saying that 2 per month is easy, it is difficult. A lot of those people sitting in new home sales offices in hot areas are making over $200K as they get 1.2-1.8% of each sale (base price only) typically.

[Colt AZ]

There are more people dabbling in real estate, than those who are actually willing to invest the time which it takes to make it a viable career!

Unfortunately, there are agents who treat their customers more as dollar signs ($$$) than as people who need a home.

[asufan]

Originally Posted by Colt Cassidy

There are more people dabbling in real estate, than those who are actually willing to invest the time which it takes to make it a viable career!

Unfortunately, there are agents who treat their customers more as dollar signs ($$$) than as people who need a home.

LOL that's true of any sales career whether it be vehicles, insurance or pharmaceuticals. At least with Real Estate there is some recourse if the Agent is dishonest

[ajonesaz]

Originally Posted by asufan

You would only need 2 closings/month in the 200K range ($200,000 X .03 = $6,000 per sale) ($6,000 X 2 = $12,000/month) ($12,000 X 12 months = $144,000 income). Obviously a broker will want his/her cut, one could be at a place where the broker takes a $500 fee per transaction or a place where a broker takes 10-20% and still make 100K. Not saying that 2 per month is easy, it is difficult. A lot of those people sitting in new home sales offices in hot areas are making over $200K as they get 1.2-1.8% of each sale (base price only) typically.

As the realtor, you would only get 1.5%, the broker takes half, plus don't forget expenses. Driving clients around, closing gifts, office space rental...

[asufan]

Originally Posted by ajonesaz

As the realtor, you would only get 1.5%, the broker takes half, plus don't forget expenses. Driving clients around, closing gifts, office space rental...

Brokers do NOT take half (I pay my broker $500 fee each transaction). Of course there's expenses (as there are in any career, commute costs, etc) you can still gross over $100K at 2/month at your $200K example, then write off a lot of the marketing expenses, vehicle expenses etc. Having said that 2/month will also be tough, one every six weeks or two months is more realistic in the first year.

[autism360]

Originally Posted by dessertlover

Okay, I just read on another thread that the AZ real estate market is heating up. I just got my real estate license. Haven't chosen a brokerage or anything yet. If I put in the work, can I make 6 figures my first year selling houses in the Scottsdale and Fountain Hills areas?

I am hearing of multiple offers being put on houses in the 200k-300k range on the day that they are listed. Is this true? If so, what would stop agents doing a decent amount of work from making 6 figures a year right now selling in these areas? I'm not stupid, not one of those bobble heads with a high school diploma trying to get rich quick. I'm highly educated. This would be a second career for me, and I need to know the real deal here. My current career would provide more stability, but a career in real estate would afford me the opportunity of unlimited earnings.

Most of the realtors I know make under 50k and after expenses 30-40 if they are good.

The main problem is getting good high quality leads and referrals;

New Home agents make 75000.-200000 but you do not control your time.

The internet has really hurt agents because most of the information a realtor has can be found online and in Az everybody has a brother, cousin or friend who has a license.

You need referrals to be successful and unless you are really smooth and have time to build up a referral base you can starve before you make good money.

You will find many people will waste your time and often blame you for things you have no control over and dump you for another agent. Buyers are liars.

There is also of lot of information online now that show how many sales an agent has had and so agents with a lot pf sales get richer since buyers and sellers gravitate to them and those that do not have a lot of sales get less and less business.

I think your chances are much better to use your license for your own personal investments to make money.

[dessertlover]

Thanks for all the input. It really is helpful.