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What are the cost involved in becoming a real estate agent?

How much does it cost to get licensed? What do you have to invest in with your own money (signs, cards, etc...)? How do you get on with a real estate company like Coldwell Banker or Century 21?

Public Comments

1. You go to a real estate Broker, as you mentioned and tell them, you want to work for them and make your license. The license seminar costs between 1300 and 2000 and then you have to pay for MLS and other fees about 1000. 1 out of 100, who start, actually make any money. Most agents are poor schmucks. If you want ot be successful, you have to hassle 24/7 and just go for listings, don't waste any time with a buyer. It will take you 2 - 5 years to build up a clientel. If you don't have the financial endurance, don't waste your time.
2. I can only speak about how much it currently costs in Oregon, but I cannot imagine that it is significantly different anywhere else. Some community colleges offer a real estate examination prep course, but if that doesn't work, contact brokerages in your area to see if they offer an online version. Make sure they have someone available to mentor or tutor you if there are questions or formulas you don't understand. These classes are around $600. To take the exam, there is an application process and background check ($40), fingerprinting (about $20), testing fee ($75). Once you pass the exam, you have to join the National Association of Realtors ($500), your state RE organization ($250ish) and your local board of Realtors (this will vary a bit by location). Then you have to buy your key to access lock boxes, pay to have it insured, etc.. It can easily cost $2,000 to get started. Because you are an independant contractor (you don't get paid unless you sell), almost any brokerage will want you. So you have to look at the entire package. Some brokerages nickle and dime you for everything. You pay for signs, letterhead, postage, advertising, E&O, franchise fees, desk fees, MLS fees, Virtual Tour fees, website fees, you pay for every long distance call - it goes on and on what you can be charged for. Real Estate is one job you have to pay to do. So when you are deciding on a brokerage, take notes on of course what the compensation split is, what you have to pay for and what the brokerage pays for. Because you are new, you are going to want to sign on with a brokerage that has a good training and mentoring program. Some places give you a desk and a phone and expect you to figure it out. Not a recipe for success unless you have a strong background in sales and marketing. Ideally, you can shadow and experienced broker who is a good trainer for awhile. Good luck in whatever you decide.
3. Cowboy, I'm sure each state is a little different. What I might suggest you do first is talk with several Brokers in the area. From Coldwell Banker, to the small independent offices. I can tell you each one will tell you what they think you want to hear. You need to gather costs from them, ask what expectations they may have, what requirements their offices require. While most have the same marketing tools for you to use, each is different in cost and product. Ask alot of questions, before you decide on which company to work under. And believe me, you really select them, all of them will select you. LOL Once you have the license you can begin work with whomever you select. There are courses/classes you will need to take as required by your state. You may or may not have to pass a state exam. I'd say you could spend upwards of $3,500 to get all the classes and exam out of the way. Now here is the hard part: It's best if you have 2-3 years of income banked to work with. This is having your own business, which you will operate the way you see fit, but keep in mind you need to be diciplined enough to prospect every single day. This isn't a part time job. If you don't funds to get you started and keep you going, then maybe you need to consider keeping your full time day job. In today's market, most are just surviving, a few are doing ok, very few are doing well. It's a tough time altogether in this industry. Best of Luck!