Start-up costs for Real Estate Agents (new agent, contracts, closing, listing)

[Hammie]

Hey Everyone,

I've been kicking around the idea of getting my real estate license for years and am finally at a point where I can just do it. I know the market is obviously down and may be for a while yet. I have never looked into just what costs/expenses I will face up front and on an ongoing basis. I am in Texas (north of Dallas) if that matters.

Just a few of the questions I have are:
Do agents buy their own lock boxes and signs?
What are average monthly advertising costs?
What other extraneous expenses are there?
What's the average split for new agents?
Are many agents getting out of real estate now?
How many sales per month are you closing now?
What's a realistic first year income expectation?

Whatever else you can think of to tell me about why being a real estate agent is great (or not), I'd love to hear your opinions.

Thanks so much!
H.

[Brandon Hoffman]

Topic has been covered many times. Some of your answers vary by company. Some vary by location. It all varies depending on the effort you put into it. Search for the topic on the board and you'll get tons of threads about this topic that will give you great info.

[Thatguywho]

Originally Posted by Hammie

Hey Everyone,

I've been kicking around the idea of getting my real estate license for years and am finally at a point where I can just do it. I know the market is obviously down and may be for a while yet. I have never looked into just what costs/expenses I will face up front and on an ongoing basis. I am in Texas (north of Dallas) if that matters.

Just a few of the questions I have are:
Do agents buy their own lock boxes and signs?
What are average monthly advertising costs?
What other extraneous expenses are there?
What's the average split for new agents?
Are many agents getting out of real estate now?
How many sales per month are you closing now?
What's a realistic first year income expectation?

Whatever else you can think of to tell me about why being a real estate agent is great (or not), I'd love to hear your opinions.

Thanks so much!
H.

it is a business like any other and requires a lot of time doing 'sales'
The more you spend on your advertising, the more business you get.
Their is inherent costs of supplies.
You can find splits all over the place from a desk fee, a transaction fee, up to a 40% (to you) split. It is all out there.

Some make money right away, some make almost nothing for a year. A lot is luck, a lot is hard work, a lot is just business sense.

Not an easy button to fortune.

[Brandon Hoffman]

Originally Posted by Thatguywho

it is a business like any other and requires a lot of time doing 'sales'
The more you spend on your advertising, the more business you get.


A lot is luck, a lot is hard work, a lot is just business sense.

I find that the best business if from your friends and acquaintances which doesn't have to cost anything more than a phone call. Advertising need not be expensive.

I find there is very little luck involved in being successful. Those who work hard, smart, and the right way put themselves in a position to be successful. They will always be "lucky" to those who sit around the water cooler talking about how the market sucks.

[Thatguywho]

Originally Posted by Brandon Hoffman

I find that the best business if from your friends and acquaintances which doesn't have to cost anything more than a phone call. Advertising need not be expensive.

I find there is very little luck involved in being successful. Those who work hard, smart, and the right way put themselves in a position to be successful. They will always be "lucky" to those who sit around the water cooler talking about how the market sucks.

True, the cost of advertising was more about the investment of time and resources...you can spend weeks working to get one listing...but networking is a cheap easy way for sure.

And you are right, luck is usually brought on by working hard and being in the right place at the right time...the more you are in that 'place' the more luck you will have.

But I had spent 6 months dealing with buyers my first year. 7 days a week. Tons of offers, lots of showings...no money came to me. Not one sale happened.

My friend started during that time and the first three people she took out all ended up buying either the first or second home shown through her.

My seventh month though.....that was cool (7th month of my home brokerage in my second year).

Got a listing near my house and while putting up a sign the neighbor came over and I listed her house that day too. While putting out her sign the next day a car stopped and the driver asked me about selling his house, 3 blocks away.

I listed him that day...his immediate neighbor was talking to me while I was putting up the sign and I listed him.

A week later the last guy set me up with his son across town to sell his house (did it in one day with an open house on a tuesday).

Next day went to get the sign and the people across the street ended up listing.
The next day I got a call from a neighbor of mine to sell her home.

7 listings, one month, July 2001, all sold by august. Total luck of being there. Thought I was the king.

Took all that money, caught up on bills, spent the rest on advertising and tools. By the beginning of september I had 7 more listings and seven signs up. I was there.

Then 9/11 happened and they all dropped their listings (my contracts allow a no cost pull out).

So by the middle of september I was broke again...and like the rest of america depressed.

So....I went from dead broke to top of the heap to dead broke. I call that luck, both good and bad. But that is how it happens, all at once or nothing sometimes.

might happen the first month, might be the seventh, but it will happen....both good and bad.