2 answers
Savannah
Student
Whitmore Lake, Michigan
16
Questions
Asked
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What is the year expenses to becoming a real estate agent
I am in 8th grade. My teacher told my class that we had to pick 3 jobs that we were interested in. I decided to choose a Real estate agent. I really want to learn what they do. #realestate #student #classes
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2 answers
Thomas Sutherland
Associate Continuity and Recovery Specialist, CBCP
207
Answers
Detroit, Michigan
Updated
Thomas’s Answer
Some costs you only have to pay once. Other costs you have to pay every year.
"When you launch your real estate career, as with any small business, you’ll need to budget startup costs into the total cost of being an agent. You’ll have to cover some of these expenses before selling your first property. If you prepare for these costs, you’ll be in a better position to stay on track. What does it take to be a REALTOR® or real estate agent? Planning, financial responsibility and hard work. To help you out, we’ve put together a list of seven costs to consider when starting a real estate career.
Fingerprinting and Background Checks- $100
Pre-license Education - $500
Exam Fee - $150
License Application Fee - $135
Yearly License Fee - $80
Broker Fees - $80
Errors and Omissions Insurance - $400
National Association of Realtors Membership - $150
And the grand total is: $1,595"
"When you launch your real estate career, as with any small business, you’ll need to budget startup costs into the total cost of being an agent. You’ll have to cover some of these expenses before selling your first property. If you prepare for these costs, you’ll be in a better position to stay on track. What does it take to be a REALTOR® or real estate agent? Planning, financial responsibility and hard work. To help you out, we’ve put together a list of seven costs to consider when starting a real estate career.
Fingerprinting and Background Checks- $100
Pre-license Education - $500
Exam Fee - $150
License Application Fee - $135
Yearly License Fee - $80
Broker Fees - $80
Errors and Omissions Insurance - $400
National Association of Realtors Membership - $150
And the grand total is: $1,595"
Meghan Thrasher
Real Estate Agent
32
Answers
Fort Worth, Texas
Updated
Meghan’s Answer
It depends on what brokerage you work for and if you choose to be a single agent or work on a team.
As a Real Estate Agent in North Texas you would pay about $2,000 to the Board of Realtors per year. You pay this to gain access to the MLS or Multiple Listing Services which provides you with available homes for sale, market statistics, a way to create a comparable market analysis and more. Once these dues are paid the Board also gives you something called a Supra key which is what realtors use to gain access to listings so that they can show their clients the homes in person.
Next, if you were to work at Keller Williams Realty as a single agent you would pay $18,000 as a Company Dollar split. This would not be out of pocket, it would come straight out of your commission earnings as a 70/30 split. This means if you get an $8,000 commission check and have not paid that full $18,000 yet then 30% of your $8,000 check would go to Keller Williams as a split and you would pocket the leftover $5,600. If you were on a team, the Company Dollar split would be $4,500 as opposed to $18,000.
As a Keller Williams agent you would also have to pay a Keller Williams Realty International split of $3,000. This works the same way as the Company Dollar split and is also a 70/30 split per commission check until you reach the full $3,000.
So in total as a single agent you pay $21,000 to Keller Williams and $2,000 to the Board of Realtors per year. As an agent on a team you pay $7,500 to Keller Williams and $2,000 to the Board of Realtors per year.
Typically teams also have splits as well and that varies depending on the team but a lot of them will do a 50/50 split. That means you will still have to pay $7,500 to Keller Williams and $2,000 to the board but each commission check you get will be cut in half so that $8,000 check mentioned before would become a $4,000 check.
It seems daunting but each place you pay a split or dues to will be in return for resources, training, marketing, and coaching that you will need to be successful in the industry.
As a Real Estate Agent in North Texas you would pay about $2,000 to the Board of Realtors per year. You pay this to gain access to the MLS or Multiple Listing Services which provides you with available homes for sale, market statistics, a way to create a comparable market analysis and more. Once these dues are paid the Board also gives you something called a Supra key which is what realtors use to gain access to listings so that they can show their clients the homes in person.
Next, if you were to work at Keller Williams Realty as a single agent you would pay $18,000 as a Company Dollar split. This would not be out of pocket, it would come straight out of your commission earnings as a 70/30 split. This means if you get an $8,000 commission check and have not paid that full $18,000 yet then 30% of your $8,000 check would go to Keller Williams as a split and you would pocket the leftover $5,600. If you were on a team, the Company Dollar split would be $4,500 as opposed to $18,000.
As a Keller Williams agent you would also have to pay a Keller Williams Realty International split of $3,000. This works the same way as the Company Dollar split and is also a 70/30 split per commission check until you reach the full $3,000.
So in total as a single agent you pay $21,000 to Keller Williams and $2,000 to the Board of Realtors per year. As an agent on a team you pay $7,500 to Keller Williams and $2,000 to the Board of Realtors per year.
Typically teams also have splits as well and that varies depending on the team but a lot of them will do a 50/50 split. That means you will still have to pay $7,500 to Keller Williams and $2,000 to the board but each commission check you get will be cut in half so that $8,000 check mentioned before would become a $4,000 check.
It seems daunting but each place you pay a split or dues to will be in return for resources, training, marketing, and coaching that you will need to be successful in the industry.