Real estate is a very expensive business

Real Estate Agent with Exit IH 10 Realty

Real estate is a very expensive business. Owners, realtors and all others involved this is not a cheap business. So are we running it as a business.

Realtors, you should be closing 10 deals a year at a minimum or know how to get there. Many people get into this industry and damage themselves up financially. The low costs fees to get a license never stop. You got education and a sales background to develope. Many realtors get into sales and don't have a successful sales background. If you are going to learn on the go I hope you have reserves if you believe that you are going to pick this skill up with a families most important asset.

Owners usually come from real estate sales. Understanding that your success in sales is not a complete package for a successful brokerage. Who is going to train, manage, recruit ect... Needs to be proven at least to yourself before you begin. If you are going to lease space know that you will need at least 40 agents in the office to get out of death valley.

Be patient, many able to do these tasks but we jump to soon and end up with a mess. Good luck.

Comments (5)

Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

Rick:  True, True, True!  I was talking to a new agent yesterday. I explained that I was concerned that he was expecting to "run his own business" without much investment.  It does cost to be in real estate. New agents coming in simply don't understand it ... they don't know ... what they don't know!

Oct 22, 2009 01:20 AM
Dennis Duvernay Broker/Owner
Hillview Realty - Northbridge, MA

Good points Rick...I opened my own brokerage last month after many years working for others......I did a virtual home office as everyone is going mobile....I am a sole proprietor who may after time put on a couple of agents from my past encounters......but yes you have to be careful and decide how big or SMALL you want to be

Oct 22, 2009 01:20 AM
Chip Jefferson
Gibbs Realty and Auction Company - Columbia, SC

I agree that a steady goal of 10-12 homes per year is needed to make sense of doing real estate full time. My personal goals exceed 24 homes per year and Im almost there.

Oct 22, 2009 01:21 AM
Larry Gray
Real Estate Consultant - Lakeland, FL

Alot of people don't understand all the cost involved in being a realtor.  Like everything in life it is the hidden cost and day to day operating cost that get you. 

Oct 22, 2009 01:36 AM
Ricki Eichler McCallum
CastNet Realty - Corpus Christi, TX
Broker,GRI,ABR, e-Pro, TAHS

Great blog, it costs a lot and like in the Bible Jesus told them to consider the cost before they began.  Same is true whether you are an agent or a broker going out on your own.  We must consider the cost-upfront. 

Jul 31, 2010 09:34 AM