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Money for nothing, and your checks . . .

By
Real Estate Broker/Owner with Cornerstone Business Group Inc 0225086119

"I'm thinking about gettin' a Realtor's license.  I'm tired of this 9-5 schedule.  I'd be nice to sleep in, take vacations whenever I want, drive a nice car, live in a big house, you know, all that stuff that Realtors do."

Please do not adjust your computer screen.  There is nothing wrong with your monitor.  On the other hand, there is something wrong with this picture.  How many times have you heard similar comments?  I've had so many people say things like this to me I think it's time to help them get started in the Realtor field.  If you want to be a Realtor because it's easy, think about the following:

  • You will need a high school diploma - no big deal.
  • You will need to sit through the salesperon classes - again, no big deal.
  • You will have to pass the class test, and then pass the state test - not really a big deal - though not really that easy.
  • You will be fingerprinted and have a background check run - remember that felony warrant?  No big deal if you don't have a felony warrant.  Oh yeah, that's not included in your testing fee.  Did I forget to mention there is a testing fee?
  • You will need to pay state real estate board fees, pay to join a local real estate board, buy E&O insurance,pay for lockbox access, pay for access to the MLS and have a business license. Oh yeah, you have to pay for that too. 
  • You will need a dependable vehicle.  And no, the Harley doesn't count.
  • You will need to hang your license with a local broker.  There may be fees involved for desk space and equipment use.
  • You will need business cards to help all your friends, family and associates know you're in the business.  They're not that expensive.
  • You will need yard signs, or as Michelle Francis calls them, "Yard Art."  There is a fee for those too.
  • You will need lockboxes.  Oh, they forgot to tell you when you signed up that the monthly fee doesn't include lockboxes.  Bummer.  Yeah, you'll want lockboxes. 
  • You will want to have a web-presence.  That may mean a website, blog page, IDX page, or a combination of all the above. There is a fee. 
  • You will want to have a smartphone to access data while on the run.  You'll want the data package with that so you can access the Internet while showing property.  Another fee.
  • You will want an IPad or some form of tablet if your smartphone really isn't that smart.  They're kind of expensive, but you're a Realtor now.  Money is no object.  Oh yeah, most don't have instant web access.  You need to find a Wi-Fi location. But, you can have on demand web access for a fee.  After all, people want to see the options right now! 

OK, now that you have the basics ready for the first day at the office, let's talk about continuing ed, and classes that actually tell you how to be a Realtor, classes that teach you how to become a better Realtor and classes that teach you how to become an unstoppable Realtor. 

Of course, you'll need to attend seminars, conferences and webinars that teach you how to use all of that equipment you invested in when you decided to give up your nasty 9-5 job to live the life of luxury in the world of real estate sales.  

Oh, I almost forgot.  It will costs you about $2000-$3500 to get started.  That might be bit low, but hey, I'm an optimist.  No big deal though, because Realtors make lots of money, and as soon as you get your license people will come out of the woodwork to find you.  You're in for the easiest job on earth!  Good luck!!

 

 

Comments(236)

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Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Wow, Fred.  That's a tight market.  I guess ours isn't much different.  I'm grateful that I have other income. 

Mark, I think a lot of folks assume that it will be so profitable so quickly that they'll make it up quickly.  Sometimes.  8-)

Right, Thomas.  Ka-ching, ka-ching!

 

Oct 02, 2011 06:55 AM
Dawn A Fabiszak
Private Label Realty ( Denver metro area, Colorado - Aurora, CO
The Dawn of a New Real Estate Experience!

Mike ~ and I am sure there are some fees you forgot to mention...fees for a good photograph, added insurance on your car since you will be driving people around, the cost to advertise a listing (once you obtain one) before it ever sells.....  Great post!

Oct 02, 2011 11:43 AM
Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Thanks, Dawn, I didn't want to scare all the competition away.  Somebody has to take the overpriced listings.  8-)

Oct 02, 2011 11:47 AM
Ben Ganje + Partners
Lakes Sotheby's International Realty - Minneapolis, MN
Minneapolis Market Leader

Mike great post! It's interesting to see that in our country RE courses don't have something tailored along the lines of what is truly costs to enter the industry and get on the fast track to doing well.  What a great read for someone thinking about all that stuff Realtors do!

 

Oct 02, 2011 02:30 PM
Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Thanks, Ben.  I'm just getting ready to become a course provider.  I think I'm going to add a session on those up front expenses.  Thanks for commenting!!

Oct 02, 2011 02:52 PM
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

All great points, Mike. And of course websites are cheap and gas is almost free and... we could go on. Also, since it's such easy work, all our clients want commission concessions just "to make the deal work" - no problem.

Oct 03, 2011 04:08 AM
Sylvie Stuart
Realty One Group Mountain Desert 928-600-2765 - Flagstaff, AZ
Home Buying, Home Selling and Investment - Flagsta

Great breakdown! It definitely costs a lot of money to be in this business. There certainly is a lot of misperceptions for what we do.

Oct 03, 2011 06:25 AM
Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Olga, you are living a blessed life.  People have no idea, do they?  Thanks for dropping by!

You bet, Slyvia.  Of course we'd do it for free because we love it so much, right?  Nah!  Good to see you.

Oct 03, 2011 07:27 AM
Dana Hollish Hill
Coldwell Banker Realty - Capitol Hill & Georgetown - Washington, DC
Branch Vice President & REALTOR

I was laughing so hard at your opening lines that I almost fell off my chair. Thre are a whole bunch of things like health insurance, self employement fees and the delay in getting paid after a home is found that are not on your list, but I love the post.

Thanks!

Oct 03, 2011 08:04 AM
Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Absolutely, Dana.  The exenses before are just a precursor of things to come!!  8-)

Oct 03, 2011 08:33 AM
Cheryl Ritchie
RE/MAX Leading Edge www.GoldenResults.com - Huntingtown, MD
Southern Maryland 301-980-7566
I should have asked which post did you write with the highest number of reblogs on the post, too. Reblog for me right here!
Oct 04, 2011 09:52 PM
Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Thanks, Cheryl.  This one got me to thinking about those statistics.  I had one earlier this year that had over 5000 clicks.  I was shocked when I went back and saw that one.  It's the only time I disabled comments on my own blog.  I just couldn't keep up.  Hot button issue, I guess.  8-)

Oct 04, 2011 10:02 PM
Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

It really adds up quick, doesn't it, Valerie?

Oct 05, 2011 12:53 AM
Bob Miller
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Mike,  How true!  Sometimes I would love to use your post in a listing presentation when the seller thinks we are making the full commission in our pocket!

Oct 10, 2011 11:08 PM
Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

That's a big misunderstanding, isn't it, Bob.  They might be surprised at how little we might actually make on a sale. 

Oct 11, 2011 12:38 AM
Dale Taylor
Re/Max 10 New Lenox Illinois http://dtaylor.remax.com - Frankfort, IL
Realtor = Chicago Illinois Homes Townhomes Condos

and if I do sleep in it is probably because I was up to 3 in the morning doing follow-up work for a client!  LOL

Oct 28, 2011 01:55 PM
Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

I hear you, Dale.  Have a good weekend!

Oct 28, 2011 02:14 PM
Debbie Walsh
SHAHAR Management - Middletown, NY
Hudson Valley NY Real Estate 845.283-3036

Mike I just wound up here on a reblog - I am not sure if I commented on this original post or not but either way I just love this post!

Apr 04, 2013 01:50 AM
Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Thanks, Debra.  It's a golden oldie.

Apr 04, 2013 04:51 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hi Mike -- Sharon Parisi's reblog brought me here today -- as Debra commented not sure if I have previously commented here but this is priceless ---- oh yes, all those "fees" even before the first showing is scheduled...this is definitely a realty reality test that should be included as part of the licensing process for those who think a career in real estate is a way to get to Easy Street -- oh yeah, you'll need more than a GPS(and the fee for that if your car doesn't have it)to find that address.   

Apr 06, 2013 01:11 AM