I have quite my job and descided to get my real estate license. when it comes to joining a Real Estate company what questions should i ask?
1, how many houses do you sell a month
2, what is the pay 6% 7% base + commission
please help
the question you will be asked is how many houses do you sell a month. as a real estate agent you work as an agent of the broker as an independent contractor, your commission will be a split something like 50/50 or 70/30 of the commission paid by the client.
typical situation: $100,000 house
listed for 5% commission, after the sale, if it sells listing broker typically keeps 2% if you are the agent on this side you get 50% of that so $1000. If you bring the buyer you get 50% of 3% or $1500. If you work with both, unless one of them expect you then to reduce your commission you get $2500.
Remember whether you sell or not, you have marketing expenses of both the listings and your personal marketing, your Realtor dues, your mls and key card fees, your office expenses, your car and gas expenses…
why did you quit your job?
Rick,
As a general rule, real estate commissions are 6% and are split this way:
– 3% for the Selling brokerage firm - 1.5% to the listing agent and 1.5% to the broker.
– 3% for the Buying brokerage firm - 1.5% to the selling agent and 1.5% to his/her broker.
This is general and may vary.
Keith
Any way you cut it, being a real estate agent is a job. If you are looking to get rich, you have to be an investor. This site is for giving tips on becoming an investor. If you want advice on being a real estate agent, you can get more applicable advice from a site dealing with working in sales jobs. You may want to specialize in dealing with investors so you want to understand what we are doing, but since we are business people, we are constantly looking to reduce costs. You are viewed by us as cost. Frequently when assessing borderline deals, the real estate commission breaks the deal. We have to see you as an irreplaceable part of the particular deal we are doing, or we don’t really want to deal with you. IMHO
Just to answer your question, I would want to know about competing supervisors (where the broker will get all the good listings that come into the office), telephone time (allowing you to get call in listings), expense sharing (paying for office space, telephone, fax, etc), viewing/ sell support (basically a clerical person that can show listings so you can concentrate on listing and selling), area expertise (the main office people in the target area call when they look to sell), etc.
I am not working myself so I know I shouldn’t give advice. But it amazes me that stupid things that people do. Quitting ones job to become a real estate agent is probably one of the stupidest. If you ever want to go back to the corporate world, you will have a very hard time trying to get hired because ‘Real Estate Agent’ isn’t taken too seriously on ones resume
Most real estate agents quit within their first year of starting, and 85% of real estate agents never make anything more than $20,000 a year (even if they work full time).
“Quitting ones job to become a real estate agent is probably one of the stupidest.”
That could be said about thinking we know about the financial situation & motivations of someone who posts briefly on the internet.
There’s a lot of misinformation regarding real estate agency on this site (for whatever reasons). I think it has a lot to do with individual investors viewpoint…some see Agents commissions as an obstacle to overcome. Those types will never view Agents as an ally & visa-versa.
[i][b]"As a general rule, real estate commissions are 6% and are split this way:
– 3% for the Selling brokerage firm - 1.5% to the listing agent and 1.5% to the broker.
– 3% for the Buying brokerage firm - 1.5% to the selling agent and 1.5% to his/her broker.
This is general and may vary."[/b][/i]
I’d add; in a full service office…the split is typically up to a certain limit ($25,000 in our office per agent annually). After that…it’s all yours!!!
Judging from your post…you’re a new (inexperienced Agent???). I’d recommend looking for an office in which the Broker will have time to answer your questions & make themselves readily available.
Expect to start slow & build your business over a 3 year period.
You’ll want a lot of money to survive on initially. This is where many new Agents wash out…they underestimate just how long it takes to get established (minimum 6 months reserves in the bank…preferably 12 months).
There’s many benefits to having a real estate license if you can get over the initial hump…especially if you’re interested in investing (more on that later).
Real Estate Agent looks great on ones resume’ and who needs the corporate world if you can make six figures a year & set your own hours & work primarily from home?
“Most real estate agents quit within their first year of starting, and 85% of real estate agents never make anything more than $20,000 a year (even if they work full time).”
I agree that a great number never make it (again…due to unrealistic expectations upon entering the field). However, I’ll contest the 85% comment, and that number doesn’t make more than $20,000 annually.
Of course it would be dependent upon which area of the country one comes from, but where’d you get those numbers? :ibs:
The office I work in has a pretty good turnover, however, there are many (much more than 15%) who’ve worked there for many years, and make considerably more than $20,000.
In fact…there’s a number of millionaires in our office…or close to it. One of the most successful only made $30,000 from sales this year, but that’s because he’s spending more time investing.
“If you want advice on being a real estate agent, you can get more applicable advice from a site dealing with working in sales jobs.”
…a site dealing with real estate sales perhaps. We’re not Vacuum Salespersons, or Car Salespersons, or even Yacht Salespersons. We’re in real estate…the field where more millionaires are made than any other.
Best of luck, and don’t let negative people into your head. This job requires positive thinking. :bigthumbup:
“Most real estate agents quit within their first year of starting, and 85% of real estate agents never make anything more than $20,000 a year (even if they work full time).” [b][/b][i][/i]
The reason most people only make 20k a year is because that is all the time they want to put into it.
Real Estate is set up to work from home and a lot of people want to be home with their kids while still making a little money ( usually to satisfy the spouse).
That is why I like real estate. It is a vehicle that allows you the freedom to do what you want and still make a little money if that is what you choose. And if you want to make more then 20k then turn up the heat and market market market. (The same thing we do)
Quote from: NickL11354
I am not working myself so I know I shouldn’t give advice. But it amazes me that stupid things that people do. Quitting ones job to become a real estate agent is probably one of the stupidest. If you ever want to go back to the corporate world, you will have a very hard time trying to get hired because ‘Real Estate Agent’ isn’t taken too seriously on ones resume
Most real estate agents quit within their first year of starting, and 85% of real estate agents never make anything more than $20,000 a year (even if they work full time).
Nick,
You’re very right - you shouldn’t give advice, because I think your comments are STUPID!!! I am also amazed at the stupid things that people do and say. First off, you don’t know islander, so for you say what you said was very judgmental. Islander said that he/she guit the job and decided to get a real estate license, not “I quit my job to get a real estate license”. You see how different that sounds!! Stop jumping to conclusions and judging people and their actions, when you don’t have all of the information. >:(
Great advice all around. Fees are high, respect is low, competition is everywhere. You need to come in with a well planned mission to build a real business where the deals are coming to you and you’re hiring others to do the grudgework. Owning a real estate brokerage while focusing on investing is where I’d want to be, but it’s a lot of work until you get the right people working for you.
Wow Dee I could not agree more!
As I see it the real question here is not what is the pay 6% 7% base + commission but rather what are the desk fee’s per month and also what percentage per deal goes to the office?
meaning if I make 3% of the sale say on a 200k house that is 6k is there a 50/50 split so I make 3k or is there a 85/15 split what is the real deal?
I calculated all the costs. Basically, I get 1.25%-1.5% of a transaction after the other agent, broker, IRS, and assistants take their cut. This is with a 6% listing. Even though I can probably avoid IRS taxes through incorporation, I still put that money away and assume it’s lost. I think we’re taxed at 25%.
So Dee not to turn this into a heated debate if you had it to do all over would you still become a realtor knowing what you know now?
Come on REO, be truthful now. It’s been awhile since we’ve had a good agent/investor debate 
Here’s the key point in ANY profession where YOU are the determining factor of your success (ie investor, RE agent, car salesperson, business owner, etc):
YOU ultimately decide if you will succeed or fail. Your planning, or lack there of, and drive and determination to succeed will determine your level of success, or failure.
All that said, it’s VERY difficult to be really good at multiple professions. You sometimes can become really good at one and fair to okay at the other, at best. What usually happens is that you end up being fair or just okay at both.
Raj
“So Dee not to turn this into a heated debate if you had it to do all over would you still become a realtor knowing what you know now?”
I know that questions for Dee, but my only regret is not becoming a Real Estate Agent sooner.
Note: Being a Realtor means you’re a member of an organization (not all Agents are Realtors).
“All that said, it’s VERY difficult to be really good at multiple professions. You sometimes can become really good at one and fair to okay at the other, at best. What usually happens is that you end up being fair or just okay at both.”
Good point.
It was a difficult period when we made the switch from appraising to agency. It was a mediocre time for us.
However, being an agent & investing go hand in hand. I can look for investment opportunities while I’m sitting at a site waiting for prospects.
Additionally, the type of investing discussed on this site is dramatically different than the type of investing an agent would typically be involved with.
I look for undervalued properties requiring very little work, and I have excellent resources, and possess an uncommon knowledge & experience to spot those deals.
The investors I tend to work with are builders and/or developers. From smaller builders to multi-state corporations.
I love what I do for a living!
Agents and investing do go hand-in-hand. I didn’t get into this business to just be an agent. I wanted to have a business that I can build so I can have enough cash to invest. Some agents make a lot, but the ones who have passive income are the ones who become owners.
LOL now that was funny HEY WHERE IS $CASH$ We need you LOL
If I remember I said If you are and it works great!
If you are not and it works great!
If you are and it doesnt work stop!
If you are not and it doesnt work Start!
For some it works and other’s it doesnt I personally am not one because it works for me. Now tomorrow if I woke up and thought to myself WOW if I was an agent I could profit I would go become one… But then again if Tomorrow I woke up and said if I was a FIRETRUCK I could run red lights I might try to become one of those as well that is the joy of being me!
a firetruck? ???
I would try if that is what I wanted to do!! LOL Robb
Besides becoming an agent are there any other suggested professions (besides a firetruck) that allow you to continue your real estate education/investigation while earning a decent living?
Thanks,
Josh
I checked into being a fire truck it is not the best of Ideas! As a matter in fact there is a ton of surgery involved LOL the point to that was you can do what ever your heart desires there are ways to grow in real estate that will allow you endless growth. That’s the great thing there is no salary cap and at least 100 ways to do any deal. I have been doing this awhile now and the only thing that I have learned is I have alot to learn. If someone tells you they know it all in RE I will show you a liar!
Robb