What are the monthly costs associated with being a realtor?

Question

I’m planning on taking the 90 hour training course so I can sit for the exam and no longer have to rely on realtors for open houses, MLS listings, etc. But before I do, what can I expect as far as monthly fees? From what I understand I have to be hitched to a broker initially.

Blair Poelman · Answer

If you're going to be successful as a Real Estate Investor, you will be successful with or without a license. Just my 2 cents - but a license isn't really necessary to make money in this game.

Yes, you will have to work for a broker for either a specific amount of time, or you will have to close some amount of deals before you can get a broker license -this varies by state, so check your local division for the requirements.

So... are you asking about the financial costs? or the emotional costs?

Financial: moderate / but can be heavyAt a minimum you should plan on paying at least $200 depending on how active you are.Annual renewals (usually 2 or 4 year renewals) are about $200.MLS fees are usually $30-$50 / Mo, mine is $35.Local association ranges - mine is $75 / mo. paid annuallyNAR is $10 / mo. paid annually.CE can be free, or can be a cost. My MLS does a bunch for free.Any other certifications you get may have an annual membership cost.Marketing material, signs & lockboxes get pricey. Driving around clients is going to cost gas, plus you're going to detail your car once a week to make sure it's always clean when a client gets in.Some brokerages charge a desk fee - usually $100 but I've seen these range as low as $50, and as high as $600

Emotional cost: HEAVY.Working as a full time agent is pretty tough. Representation is a hard game to play. You really have no control of what happens, no matter how well you manage your clients.

The really good money most of us make in Real Estate is made by doing deals. Sure, I'll represent clients - but I turn a lot down (refer it out), and I pick and choose who I'm going to work with.

Max T. · Answer

2-3k per year for me.

just MLS and Realtor dues.

my broker doesn't charge me anything except his split of any commissions.

Jeff Brower · Answer

I have my license more for personal reasons, and to help friends/family every now and again. I am with KW. Having only done 2 transactions last year, I am a good example of 'basic' as it gets when it comes to fees. I would estimate about $1500-1800 just to keep the license active without doing any deals. That is in Ohio and covers my local, state, and national realtors associations dues, KW fees, MLS fees, etc. Obviously it will depend on which broker you go with, as splits matter.

Christine Kankowski · Answer

The biggest item that can cary greatly is the amount your pay to your broker. Some brokers charge an annual fee and you can do as many transactions are you want. Others charge a percentage of each transaction 5-30% so this could make a huge different. Some charge a flat fee per transaction. DO your research. Typically if you are new, you may want to go with a large firm taht offers excellent training, hand holding for the first few transactions, etc. That is worth the higher commission fee to start.

Russell Brazil · Answer

Thats going to vary by location. For me its about $5-6k per year just to maintain a license.

Jack B. · Answer

So are we talking a few hundred a month on average

Russell Brazil · Answer

Mls fees, board association, e&o insurance, general business liability insurance, electronic key fees, licensing fees, continuing education, any fees your broker might charge, increased auto insurance rates.

What are the monthly costs associated with being a realtor?

What are the monthly costs associated with being a realtor?

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