Being a real estate agent and starting your career is similar to starting a small business- you will need a startup cost. You will need to cover some fees even before selling your first house. If you prepare yourself and your budget in advance, you will be in a better position in the future, and your career is more likely to prosper.
It takes a lot of maturities to be an agent, and it is not as easy and rosy as it may seem. It will require a lot of financial responsibility and planning… This article has gathered the best tips to consider when starting a career.
1. Pre-licensing Real Estate Classes And Training
As you know, you should sit for an exam, but even before sitting for the exam, you need to find a good real estate school. The cost differs in different states, and also different schools will have their fees. There is coursework available online, and they are less expensive than in-person.
Estimated Price; $ 100 +
2. Examination And Licensing Fees
Applying for a real estate license is usually around $25. You’ll have to pay for fingerprinting and a background check on top of that. The total cost will be around $100. The cost of the state exam varies, although it is usually less than $50. After that, you’ll have to pay around $150 for the license.
Estimated Price; $ 300 +
3. Broker Fees
Now that you have your license, you may rely on a local broker- you won’t start working for yourself as you start in the field. The broker will take care of some operations and their expenses. This includes; photocopies, internet, insurance, and office supplies.
This can be paid from a percentage of your commission- you may also need to pay a monthly desk fee.
Estimated Price; $ 25 – $ 500 + per month.
4. Membership Charges
When you become a realtor, you become a board member, and you must pay your annual membership to this board. Some are members of the National Association Of Realtors, but some state or local boards you may sign-up to.
Estimated Price; $ 200 + per year.
5. Business Expenses
There are some uncategorized expenses in any business or job, including telephone bills, cellphone bills, supplies, software, hardware, and office space. These costs may add up, so it is important to list them and reserve a budget.
Estimated Price; varies.
This is one of the most important and highest costs when starting your career. Most realtors will spend approximately $ 1000, but it can be much more or less depending on your marketing strategies.
Marketing will cost the most in the first year of your career. The cost includes; business cards, advertising, brochures (graphic designers and printing), mailers, etc. But these are needed for the first year because you still have to create a name for yourself.
7. Continuing Education
Once you are an agent, you will continue learning throughout your career. You will have to take some classes to meet your license requirements. It is an ever-changing field, and you should be able to catch up with the changes.
It takes a lot to be a good real estate agent and make banks. You should start with the appropriate license and education; this is the basics of a good career. These costs mentioned above are also important; you may try to bypass some- but the combination will guide you to a successful career. Let us know in the comments if you think some of the costs mentioned above are not compulsory…
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An excellent read. I will certainly be back.