What does it cost just to call yourself a Realtor® ? Let's run the numbers.......
Have you ever thought about how much money it costs just to call yourself a Realtor® ? We as agents know that it is expensive, but let's get right down to it and crunch the numbers.
For the sake of example, I will be using my own scenario as a licensed agent in the state of California, and we'll be basing this on an annual amount.
$155.00 - National Association of Realtor Dues
$184.00 - California Association of Realtor Dues
$150.00 - Local Association of Realtor Dues
$500.00 - MLS Access Fees
$1,200.00 - E&O Insurance
$85.00 - Business Cards
$385.00 - SupraKey Dues
$475.00 - SupraBoxes
$600.00 - Increased amount of auto insurance required by broker
$900.00 - Website
$600.00 - Open House Signs
$300.00 - For Sale Signs
$120.00 - Sign Riders
$375.00 - Continuing Education and Licensing Requirements
$6,029.00 - TOTAL
Now just to repeat, this is the total expense JUST TO CALL YOURSELF A REALTOR® . So in monthly terms, it costs us $500 PER MONTH, just to call ourselves Realtors.
This has nothing to do with the actual expenses that we incur, which vary from one agent to the next, depending on volume, activity, location, etc. Let's just give an example of some of these types of expenses:
$2,400.00 - Office Expense
$3,200.00 - Advertising
$1,200.00 - Auto Expense (just for real estate related activity)
$2,400.00 - Client Gifts
$1,200.00 - Travel Expense
So here's a MINIMUM of at least $10,000 in operating expenses on the average that are incurred. And this has nothing to do with income taxes, broker splits, seller/buyer concessions, etc.
For those of you out there in the public realm reading this, take note: It is not cheap nor easy being a licensed real estate agent.
Ya'll need to 'ppreciate. Ya know what I'm sayin'?