Being a real estate agent is an outstanding way to make a living. The money making potential is limitless and you get the freedom to work in the way that you prefer. Like all independent careers, being a real estate agent does come with its expenses.
Here are the top 5 biggest real estate agent expenses that you need to know about:
1. Getting licensed
Being a real estate agent is not a profession that you can legally jump into without a license. This means that you will have to pay some licensing fees to get started and should count this among your expenses when becoming a real estate agent.
What is more is that you will see a lot of bold claims. Especially when it comes to passing your state exam.
People will say:
“We have the answers to the exam”
“All you need is our crash course and you will pass”
“100% pass rate”
My advice here is use to use common sense and know what works for you.
Can sit through 2 full days of real estate law and take it all in? Can you sit and read a book on real estate law? Or maybe you need to have online access to the material you need to pass to fit your busy lifestyle. Only you know what is best for you.
What I will tell you is that there is not magic wand or secret formula to get you passed. Do not fall for bold claims with large price tags. Sadly there are a lot of scam artist out there. Look for reviews on Facebook or other locations to see if it is money well spent.
2. Developing your real estate education
You will learn a thing or two about real estate as you earn your license, however having a business is a constant learning process. There are still many things that you need to learn about in order to be successful. The best way to effectively educate yourself is to invest in the resources that will bring you up to speed on all of the jargon and prepare you to make the right decisions. There are many books, conferences and seminars out there to help you learn how to build your business. But much like getting licensed that are a lot of scam artist out there that can charge very high fees without giving much substance.
It all comes down to doing a little research and getting referrals to find out which path to further your real estate education is right for you.
After you get licensed and educate yourself on how to build your business you will have to spend money to execute all the things you learned, more specifically your marketing.
You must invest in marketing resources that will draw these people to you so that you can convince them that you are the best person to work with to buy or sell their property. This can be costly, but there are also many affordable ways to market yourself these days that did not exist in years past with the advent of social media and other forms of online marketing.
4. Getting around
Succeeding with real estate will require more than the internet. Eventually you will have to get out there, shake hands and go to the properties. You will have to drive around, or if you are in a big city use the public transportation quite a bit. Weather you are driving around in the suburbs or taking the subway in the big city the amount of money you spend on your transportation can sneak up on you very quickly.
This can be solved by using credit cards that give benefits for spending on transportation related items and by planning your day. If you know your routes in advance this can save not only time but a lot of wear & tear on your car, gas mileage or subway tokens.
5. Membership with professional real estate organizations
The connections that you need to succeed as a real estate agent won’t simply come to you, you have to go out and get them. Joining a professional organization is great for this, as some of the top real estate pros in your area will be members. These organizations typically charge a membership fee.
Some of these are optional and some are required depending on your area and what the broker you are working for requires of you.
We do not put the fees of your brokerage on this list because that can vary so much depending on who you are working with and what you agree upon. But be aware that brokerages can take a chunk a change out of your pocket. But if they help you grow your career then it is worth it.
Preparing for your expenses allows you to overcome them
Instead of a burden, your real estate agent expenses should be considered a part of doing business. Don’t let this hinder on your way to your real estate career. Document your expenses and plan them in advance and you will be ok.