Most people selling thier homes are overwhelmed by the commisions they have to pay real estate agents. With a normal Realtor commission, a seller will pay $6,000 for every $100,000 worth of house they have. Sellers like this think that real estate agents are dishonestly getting a lot more money than they are worth. They think real estate agent get paid fortunes for doing very little work. After seeing the large commissions, a lot of people think they should become real estate agents.
It’s not hard to get a Virginia Real Estate license.You won’t need a college degree to get a real estate license, in fact you can complete the required education in less than a month. Because almost anyone can get a real estate licenese, people are weeded out through competition. Most people who get real estate licenses won’t pay the renewal fee when it expires in two years.2005 statistics show that only 7% of real estate agents renew their license at the initial two year expiration. Now, with a more difficult home selling environment, the percentages are probably even lower.
Actually making a living as a real estate agent isn’t easy, and it requires an investment as well. Here are a few things you should know if you are considering becoming a real estate agent.
It costs a lot of money to start your real estate business. Paying for real estate school, the license test, and the license fee cost, money but it’s even more expensive after the license is aquired. Before new real estate agents can begin working, they must find a real estate broker to work under. To join a brokerage you need to join the National Association of Realtors, the State Association of Realtors, and the Local Real Estate board and pay their “dues. ” This can cost close to $1,000 annually. You’ll also have to pay MLS fees, which will likely be more than $30 a month. And if you actually get some business, you’ll have to pay for that too. In most real estate brokerages you’ll have to pay for your own signs, business cards, real estate website, etc. You’ll have to pay money to advertise your listing, or pay for gas to drive around to show homes.
Most of the time you will be working for free. While it is true that real estate agents sometimes get really big commissions for the sale of the property, the majority of their time is spent doing things that don’t bring them any money at all. Many buyers don’t actually buy, and many homes don’t end up selling. But, most of Realtor’s times aren’t even spent marketing properties and showing homes. Most of the time real estate agents make phone calls, knock doors, or engage in activities that will help them find clients.
Nobody is going to contribute to your health insurance or 401K. Real estate agents aren’t employees. They are independent contractors, and essentially owners of their own businesses. Real estate brokerages don’t provide heath insurance or retirement programs for agents. If real estate agents want health insurance and retirement savings, they need to pay for them themselves.
It will be months before you start making money. Most real estate transactions take month before closing. Most buyers spend more than a month looking at homes before they actually make a decision. Most Redlands Californa Homes for sale have been on the market for nearly half a year before they ever get an offer. In this “buyers market” some homes will take years before they sell. Nearly half of all listed homes don’t sell during their initial listing contract. Then, once a home finally gets under contract, it usually takes about a month before it closes, and the commission check is actually received. Even if you have a potential buyer or seller the first day you start work, you probably won’t get your first paycheck for several months.
Many real estate agents are able to overcome all of the obstacles and make a lot of money. If you know you want to be a real estate agent, make sure you have plenty of savings before starting your new career.