Financial Aspects of a Career in Real Estate
How do you make money in real estate? What does it cost to get started? What expenses should you expect to have on an ongoing basis? Here's some information that should help you answer these questions. For more detailed information as it applies to your particular situation, please contact us.
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 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's an Example of How You Get Paid on a 70/30 Split
- You sell a home for $100,000 and charge a 7% commission.
- The seller pays $7,000 in total commission.
- $3500 goes to the company that sells the property and $3500 goes to the company that lists the property.
- 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 with the highest and best graduated commission splits in the business.
- For new sales associates the split begins at 70%. As you earn more, you keep more, 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
Profit Sharing is another way you can generate income when you work with Crye-Leike. We distribute a portion of our income annually to sales associates who help us recruit other associates. Our profit sharing plan is designed to say "Thank You" for sales associates who help grow the company. Click here for more information on Crye-Leike's profit sharing plan.
Expenses in Your Real Estate Career
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 costs that you will need to plan for.
Start-Up Expenses for Your Real Estate Career
It is a good idea to have several months income set aside, because you will be earning money on commission only once a transaction closes. It can take a few months to start seeing the rewards.
- Real Estate School - Pre/Post-Licensing Courses
- State Application and 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)
- Marketing Campaign - Personal Promotion (business cards, post cards, web site etc)
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. (Compare Crye-Leike fees to other brokers)
- Brokerage Fees (Compare Crye-Leike fees to other brokers)
- Real Estate License Renewal Fees
- Continuing Education Expenses (More on Training)
- Local Realtor Board Renewal Fees
- Company Desk or Franchise Fees (Crye-Leike does not charge these fees to our branch office associates.)
- For Sale Signs
- Marketing Services
- Technology Services
Interested in joining the Crye-Leike family?
Contact us to discuss your real estate career and how we can help.Contact us