I have researched the basics of getting into real estate such as the classes you need, the cost of the license, the test you need to take, and other legal matters. My main question is, how much money is typically needed to really get going? I live in Georgia, and am pretty sure that the cost of the license is $170.00, and the test is $70.00. I’ve heard that in-person classes range from $700.00-$1000.00, while online classes go between $300.00-$500.00, and that you shouldn’t take the online classes. If someone could elaborate on this, it would be much appreciated. Also, a ballpark estimate of how much money would be needed for other fees that pop-up, such as advertising yourself. I live at home with parents currently, so living expenses would be minimum. Any information would be much appreciated.
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#1 by linkus86 on September 17th, 2009
Advertising prices vary and when you advertise in newspapers sometimes certain companies offer “special deals”. One cost you aren’t considering is the fees to join and maintain a membership to your local board of Realtors which in my neck of the woods costs about $900 a year. Also it might be necessary for you to keep errors and omissions insurance which will likely cost you $150-250 a year. Then there are the everyday expenses that catch when you aren’t looking like gas, color copies, signs (or the rider signs with your name and phone number you put with your company signs), continuing education, lock boxes and or the electronic key to open them, cell phone (your usage will rise) and other office expenses. The big one is that after all that you have to split your commission with your broker (often 40-50% when starting out). I hope this helps you toward your final tally.
#2 by Mildred S on September 17th, 2009
it does not matter where you study or how you study , you are just preparing for your state test. i would not take it online at all , there is too much content , and it’s too complex to understand if you do not have law background.
an instructer knows the content of the state test you will be taking so they teach you in class how to pass the test. how questions will be asked . you can ask questions/get immediate feedback/answers from the instructer. it’s just much better / easier to do in person vs. on line.
you can take the prep courses at a local community college for cheap. Century 21 usually has offices that give you 4 week or so courses. I would call several schools that are accredited. Your state’s real estate licensing agency, office banks/real estate , will have lists online of the schools that are approved/accredited .
After you get your education/ test out of the way , it is easy to get a broker to hire you. They don’t really care how many agents that they hire because you are paying them for a desk/phone/office space. The fees can be very different depending on where you work . The only other big expense is the MLS to have access to the listings. 200 ? Any professional organizations you join. You will need business cards . You will probably have to pay to have signs made / photographs of yourself. Depends on the agency you work for. you need a cell phone / email account and to be able to be available to your clients almost 24/7. Advertising is expensive but it sometimes is included in your monthly fee.
You can advertise yourself/market yourself without a lot of expensive work. Some other expenses, You need to have a professional appearance/maintain that. Car kept clean because you will need to meet clients/might drive them. to advertise yourself, you just need to let everyone know that you are a realtor and everywhere you go / everyone you meet not jus your freinds. get active in your community , because you need to meet people. i do not think it will be hard to get listings in the future … selling will be tougher. i think realtors will have to negotiate more / get creative.
#3 by operabab on September 17th, 2009
Getting your license is only one small piece of the pie. Here are typical expenses in my area:
MLS dues: $30/month
National Assoc. of Realtors dues: $800/year
An electronic lockbox: $125
eKey to open the lockbox: $125/yr
Yard signs: around $50 each (get 5)
Open house signs: around $35 each (get at least 4)
Business cards: $75 for 1000 (if your broker doesn’t buy them for you)
Newspaper ads: vary widely, but plan on $60/ad
Craigslist ads: FREE! (I get a lot of inquires from here)
Printing costs for flyers, door hangers, brochures, etc.
You need a web site if your broker doesn’t provide one for you: $50/month for a basic one
And aside from that you should plan that you won’t earn a dime for 3-6 months while you’re getting started so you need enough in the bank to pay your bills until you get your first commission check.
All in all, I’d say you need a few thousand bucks minimum or you will be setting yourself up for failure. You have to spend a lot of money in this business before you make anything. But when that paycheck comes, cha ching!
Best of luck to you!
#4 by Lion J on September 17th, 2009
Check in with the real estate companies in your area that say “Looking for Agents” on their signage. They will train you, and then offer a desk for a monthly price, and pretty soon, you’re an Agent!
#5 by ABC on September 17th, 2009
Adam,
Try http://www.investinuglyhomes.com
#6 by Monika Wilson on September 17th, 2009
Regarding taking online classes or going to real estate school depends pretty much on your personallity. I would rather go to class because due to interaction with other people i personally just learn better and easier. After you took your state exam you will need
Business cards (around 50,–), you will need a Web Site, a computer at home is helpfull, you have to pay MLS Fees and the National Association of Realtors and the local board of Realtors as well.
If you just start out brand new you might want to pick the company you want to work for, talk to them about the starting fees and in house trainings. A lot of companies are more than willing to help you out with some of the costs