How Much Can I Earn in a Career in Real Estate?

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 60/40 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 60/40 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 60/40 split, you will receive $2100 (60% of $3500), minus any other fees your company may charge. (Some companies charge transaction or franchise fees. Crye-Leike does NOT charge these fees).
• 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 60 percent of gross commissions. The more you earn, the higher your split; up to 95 percent of the gross commission.
• For experienced sales associates, depending on your previous earnings, you may start from 60 to 80 percent of gross commissions and can work up to 95 percent.
• 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 franchise or 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.

Real Estate Career Start-Up Expenses

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.
 

Ongoing Expenses in a Real Estate Career

• Career in Real Estate - Add It Up! - Click here for a more comprehensive list of fees and Crye-Leike's charges compared to other companies.
• Real Estate License Renewal Fees
• Real Estate Continuing Education Expenses, learn more about real estate training programs
• Local Real Estate Board Renewal Fees
• Real Estate Company Desk or Franchise Fees (Crye-Leike has no franchise fee and no desk fee - ever!)
• For Sale Signs
• Marketing Services
• Technology Services
• Insurance

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.