There are fees that are associated with being a licensed real estate agent. You are running your own business when you are a part of this industry and as with any business there are things that will cost you money.
Some of the costs vary depending on what the agency you work for and some of the fees are items that you actually will choose to use in your business.
The first fees that you will have to pay as a real estate professional are the fees of your licensing course. Depending on whether you take courses directly at an agency, and they waive the class fee, you will have to pay a fee for your pre-exam credit hours plus the cost of your course materials. These fees should only be a few hundred dollars at the most.
Next you will probably have to pay to actually take your exam. Usually you have to present them with a copy of your diploma given by the real estate school in order to schedule your exam. The cost of the fee associated with the test itself varies by state but once you take your classes they will direct you on how to actually sit for the exam.
Parc Central Residences price will include the agent charges for the purchase of the property. The preparation of the strategy is necessary for the spending of the money. The charges are less to invest to have a new property. The checking of the details is essential to buy a new home.
Also because there is so much that one person would have to know most states require that an agent pays for Error and Omissions insurance. In some cases the office will pay some of this cost. Do not let this scare you. It is for the home owners, purchasers, and your own protection.
We are all human and make mistakes and this is a way to make sure that no one is harmed as a result of a big mistake. The cost for this insurance is not that high but also varies depending on your offices E and O policy.
You will most likely have to purchase your own business cards, most sites will have real estate as an option, and in most cases they will have cards specifically designed for your agency already. All you need to do is fill in your information.
Another expense that you will have starting out is buying some signs to put in the front yard. This is the primary advertising for your budding business. Again your office will dictate exactly how these signs must look.
In a lot of cases agents will buy them as a group to get a better deal. If no one in your office brings this idea up to you bring it up to them. There is no reason why you can’t get a group of people together to purchase signs that have the office information on them. The more you buy typically the more you save. You can also buy attachments to the signs that have your name and contact information on them later and just attach them to your signs.
I have already touched on advertising a little but as in any business advertising is key. You may want to invest in direct mailers, door hangers, refrigerator magnets, email marketing plans etc. Anything that will keep your name in the forefront of your clients mind is a good investment.
There are fees associated with being a part of your office. To be a part of an agency you will pay a percentage of your commission to the broker of the office who closes your transactions. Again percentage will very based on several factors.
Each agency has their own specific policy on what commissions agents in their office pay and how they change. Typically the more homes that you sell your commission going to the broker will decrease. Some agencies also charge a flat monthly rate to be a part of their office. Depending on how well you are doing this may be the best option but keep in mind if you are not selling any houses you still have to pay to be a part of that office.
You will be required to pay the local and national board of realtors to be a member. Typically if one member of the office is a member of these boards the entire office has to be a member. This may seem unfair but later in your career you will find that being a member of certain designations like this will further your career. It will set you apart from other real estate agents out in the market. You also can not refer to yourself as a realtor without being a member of their organization.
Lastly you will have to pay for your real estate website. Nowadays everything is done online and you want to be sure that you are online as well. It will be an easy way for your former clients as well as your potential ones to get to know you a little bit. You can put information about yourself and what properties you currently have listed on your site.
Samira Gutoc is the founder and managing editor of Atlas and Co. She is also a content writer, blogger, poet, photographer and an editorial associate.