Education and start up costs: How much are they?

Question

I recently decided that once I educate myself that I would like to obtain a salesperson license and become a real estate agent. I know the classes I will need to take will be a few hundred dollars and the exam itself will be about sixty, but what about the costs associated with working with a brokerage? How much does it cost to hang your license in a brokerage and what are the fees? I am also hearing that I should have at least six months of cash reserves when I start out. Is that because I probably won't be closing many deals right away and I'll need money to be able to pay the bills and also for marketing? So as far as classes, the exam, and working with a broker how much will that all cost? Any responses would be greatly appreciated.

Chris Martin · Answer

From this 4/9/11 post on this other BP topic, the local MLS where I am was/is $150 per quarter. MLS where I am requires that you are a Realtor. In my state RE agents are licensed by the state and independent of the National Association of Realtors (NAR). Brokers can pay to be Realtors. NAR membership fees were $416/yr and there was a $300 orientation fee. I don't know if the numbers changed since then or not.

My cost is $0 because I am unlicensed;)

Account Closed · Answer

Okay thanks.

Gary Parker · Answer

If I am understanding you correctly Terry H. there probably is no "fee" paid to the broker to sign on, but each broker is different and each state is different.  In my state I pay MLS fees, local association fees which include NAR fees (I have to pay the NAR fees) and my broker split.   Call a couple of national brokers and a few local guys and get a feel for what they can do for you.

Account Closed · Answer

Gary Parker, as far as when you first start off with a broker though, how much does that cost? I mean when you first find a broker and decide that you would like to work under them, what's the "employment" fee?

Gary Parker · Answer

Besides the fees you mentioned there are fees to access the MLS and usually association dues that vary from area to area.  Brokers also charge different commission splits.  Some brokers (typically national brands) are very structured and you will man phones a lot when starting out.  They will usually have large training programs available.  Some brokers are minimal cost with no training or structure but usually much lower commission splits.   You might want  to sit in on some of the national brand training if they will let you and also research how to market yourself.  Then decide the best path for you.

Education and start up costs: How much are they?

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