|
|
 |
 |
|
 |
 |
<< Associate Career Path Main Menu
|
| Do you have questions about the financial aspects of a career
in real estate? How do you make money? What are the expenses that you can
expect when you get started in real estate? What expenses should you expect
on an ongoing basis? Below is general information that should help you
answer these questions. For more detailed information please discuss these
topics when you meet with a company. |
|
|
|
|
One of the most appealing aspects of a career in real estate is the unlimited income
potential. Though each company has its own compensation plan, one popular method is to
start associates on a 70/30 commission split, until the agent reaches a certain income
level. Then at the higher income level, the agent enters a bonus situation with a higher
split percentage. Be sure to ask a company what the average production is for associates
with their firm.
Here is a simple example of how you would get paid on a 70/30 split:
- You sell a home for $100,000 and charge a 7% commission.
- $7,000 is the total commission.
- $3500 goes to the company that sells the property and $3500 goes to the company that
lists the property.
- If you are on a 70/30 split, you would receive $2450 (70% of $3500), minus any other fees
your company may charge.
- You get paid when the transaction closes.
Crye-Leike's Incentive Commission Split Plan
- Crye-Leike offers a highly competitive plan. Highest and best graduated commission
splits in the business.
- For new sales associates the progressive split begins at 70% of gross
commissions. The more you earn, the higher your split; up to 95%.
- Credit is also extended for what you've earned elsewhere, year-to-date, so you remain at
a higher split until the end of the year.
- Crye-Leike does not charge its sales associates monthly agent desk fees.
Crye-Leike's Profit Sharing Plan
- Crye-Leike distributes a portion of its profits annually to sales associates that help
us recruit other associates.
- Our profit sharing plan is designed to say "Thank You" for sales associates
who help grow the company.
- The profit sharing plan is open to any Crye-Leike sales associate or employee.
- The profit share comes from the company's money. It DOES NOT come from the associate's
commission.
- When a new associate is referred to the company, the referring associate will receive 5%
of the company's part of the commission on sales made by the referred associate.
- Profit Share Bonus will be paid on the first two years of production of any recruited
sales associate.
- Click here for more information on Crye-Leike's profit
sharing plan.
|
|
|
|
|
|
It is important to know how much your new career is going to cost you. Expenses should
be covered in your interview with a broker. With realistic expectations of what up front
costs you will need, you will be able to plan to meet those needs successfully. Below are
some common areas of start up costs that you will need to plan for.
- Real Estate School - Pre-Licensing and/or New Affiliates Courses
- State Application and/or Exam Fees
- State Licensing Fee
- Local Board of Realtors Fees and Membership Dues
- Key Cards, Lock Boxes
- Errors and Omissions Insurance
- Insurance (Health, Auto)
- Technology Fees (voice mail, long distance, internet access, computer etc)
- Taxes
- Marketing Campaign - Personal Promotion (business cards, announcement postcards, web
site etc)
It is a good idea to have several months income set aside, because you will be earning
money on commission once the transaction closes. It can take a few months to start seeing
the rewards.
|
|
|
|
|
Be sure that real estate companies that you are considering explain exactly what services are
provided and what the charge is for each. This list varies greatly by company. Click here to compare costs of a career in real estate
with Crye-Leike's versus other brokerages.
|
|
|
|
| Click here to contact us about a career in real estate. |
|
|
|
