Real estate agents are independent licensed professionals. Many people call this a job but it really is an entrepreneurial, independent position, IE: Business. It is better classified as a business because it carries the following characteristics:
1. It has multiple start up costs.
2. Licensed by State or Province.
3. Many agents operate under business names.
4. Expenses such as: Shuttling potential clients around, dinners & lunches with potential clients, advertising costs & office expenses etc.
5. Most agents right off most expenses as a business for tax reasons.
Jobs on the other hand are generally free to find & get started. You do not have the opportunity to right off expenses because you will be classified as an employee.
How much can you make as a real estate agent?
First of all real estate agents get paid by commission. They usually get paid anywhere from 5 to 10 percent of the selling price of the home. This can be good for you if you are a good salesman. The more homes you sell, the more income you can make.
Here are the 2006 US Estimates from the lowest to the highest:
o The lowest 10 percent earned less than approximately $20,170.
o The average agent (25 – 50 %) earned approximately between $26,790 – $39,760
o The top 5 percent earned approximately $111,500 +
How much does it cost to become a real estate agent?
It may cost you anywhere from $2,000 to $5,000 to go through the full licensing procedure depending on what state or province you are located. This is only the bare requirements of obtaining a real estate license. Find a licensed school near you for more detailed information on obtaining your license.
How many positions are there?
Based on the constant up & down real estate market, it would be very hard to say exactly how many positions there are currently. You would have to take in to consideration how many agents may be potentially leaving this industry, the amounts of properties for sale & the current market (buyers or sellers).
In 2006 in the US there were approximately 432,000 positions. You would also have to take in consideration to what area you are planning to business in. Generally if you are in a big city there will be more positions available but also a lot of competition as well.
What does it take to succeed in real estate?
The real estate agents who do extremely well are usually in the top 5 percent. You can drive down any street in your neighbourhood & plainly see the main names of these top earners almost everywhere. Most of these people have one thing in common. They are achievers & very good in sales. More than that, they are very good communicators, quick thinkers, organizers, & excellent in customer service. It takes a special breed to become a top realtor. It all starts with a burning desire or passion for this business. Many have gotten in to this industry & out just as fast mainly because of the transition from employee to entrepreneur. It takes a lot of courage for anyone to make this transition because of the whole principal behind this. Most people want job security & have a hard time digesting the fact that their commissions are not guaranteed. The flip side on this issue is that the top real estate earner has surpassed this level of thinking & reaps the rewards of being an entrepreneur.
If you are considering real estate as a career & are prepared to do what it takes to succeed then this can be a very rewarding career move. If you are the type of person who wants to stay safe with a steady pay check this may not be for you. Please keep in mind that anyone who makes $100,000 + per year most likely has made a commitment to their business & themselves.
The top realtor’s have gone the extra mile in this career & are highly compensated for their efforts.
Other options instead of real estate:
1. Life insurance agents.
2. Mortgage specialists.
3. Car Sales.
4. Travel Agents.
5. Direct Sales Consultants (Home Based)