Reply by Judy Cobb on 11/3/05 10:44pm
Msg #74138
I've been a Real Estate Broker for 16yrs. Things have certainly changed over the years. It cost more money to be a realtor, dues and fees to the owner/broker. Since you would be new, you cannot start out owning your company, and in ORegon, must be hold a license for 2 yrs and be a principle broker before "cutting loose" and owning your own business. I've spoken to a few who have started their own businesses and they've said they had no idea of the costs involved, more so if others join you. Then you are responsible for their accuracy in contracts as an owner. So, yYou will need some experience under your belt. You must understand Real Estate law in regards to representing your buyer or seller, study and in Oregon, pass your exam after 90 hr.s I don't know who could study and take the exam in 90 yrs. Is a requirement to take competencies to see if you understand what the information you are studying. Taking the exam and passing it is not the hard part.
People just don't seem to be loyal today. They sometimes work with you and turn around and buy from a stranger if you can't be with them everytime they are out driving around. (just had this happen on a $1.5 million dollar property. They knew I would be gone for the weekend (a rairity), arranged to have someone in my office to assist them if they happened to go into an open house of the weekend...everything! Many agents use buyer contracts to try to keep this from happening.
As an agent, a segment of your income will go to your broker, or you will pay a desk fee. Some are paying $25,000 a year or more. Usually a percentage of a sale goes "to the house".
Real estate is expensive. Not only the money going to the broker, but E&O which is manditory and is at least $150 yr, some pay more, depending upon the number of agents in the office and suites brought to litigation. More over, it is RMLS fees to access properties on the MLS system., varioius fees to National Assoc of Realtors, etc....etc...
I have been a high producing agent over the years. I continue my manditory education yearly, sell homes, but like the freedom of being a Notary. I meet with people, do the signing and leave, collect a paycheck shortly there after. A pay check as a realtor is going to be 30-445 days after a contract is signed. The hurdles of inspections, screwy agents sometimes to deal with can test you patience. Sometimes there is a sale fail, hard work, no pay. Yes the paychecks are a heck of a lot bigger. I've had $200,000+ years. Ulcers and stress too. I would say just remember a broker will generally not stress you need to have some funds set aside for the months your sales might be dry, or you just can't find a property that meets with the needs of your customer. Usually 6 months of household expenses would be a good number to have set aside. I was a sales trainner for 3 companies. I used to say, it is the only business that you wake up ievery morning unemployed. You've got to be a hustler. To be effective you've got to meet with people nose to nose. Agents now what to send their customers out to look at houses, call them with their selected home and write it up. As I've said, things have really changed. The internest has caused people to be more independant. They think they know as much as you do, even after a number of years in the business. You see, people start looking for a home most often on the internet first, not to find an agent, but to see homes. So the old "saw" " if you list, you last,." is accurate. People start by looking at listed homes, not looking to find a nice agent to work with, Advertising too, is a big cost ...how will people get to know who I am? Will I be a "secret agent" and not advertise? No. Most agents have websites. This expense is about $400 a year, some pay more.
So I do both, my husband is a RE Broker too, so we do double time., he will show homes, or go on a signing. It helps to fill in, keep beans on the table. We'd like to retire one day...soon...please.
Hope this gives you some ideas., this post is not to discourage you. I wish you well in what ever endevor you strive after. But interview some realtors in your town, I'm sure you know several. Take one for coffee, they will give you some ideas too.
Judy Oregon
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Reply by Cindy Dorman on 11/4/05 6:39am
Msg #74170
I have been an SA for three years....passed the RE Exam and started working p/t at real estate sales in May, still keeping my other p/t job. In September I gave up my other p/t job and went into real estate full time and still doing signings. Been lucky to have a husband that is supportive....he is picking up the slack.....I am now finding out that RE sales is not an easy job...lots of stress from dealing with sellers, buyers, banks, lawyers etc, but I really like it so far. I am realistic though. There are a lot of costs involved. I know that even though things have been lucrative so far, that there will be times that won't be the case, so I still have the signings(that I really enjoy), which gives me an income that helps during slow times in real estate. I have been pretty steady with that and the fact that my time is flexible now, I have been able to do more of both. Time management and flexibility is important. Being a people person is important. Staying on top of the laws is important. These jobs aren't for everyone, but I don't condemn anyone who wants to try. As far as becoming an SA I do recommend reading these posts from beginning to end, because there is a lot of helpful information here that should be considered before making the final jump. Good luck to you!
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