Real Estate Career - What Expenses Can You Expect?
I am a licensed real estate agent selling homes in the Ft Benning and Columbus GA area. After my 33 year career, selling with a major chemical oil company , I decided to transition into my real estate career. While with the chemical/oil company they provided a new vehicle (annually) and paid all T& E (travel & expenses) all paid. I was always able to eat well, entertain customers, clients and always stay in a nice hotel. I decided to venture out into real estate. This blog will focus on expected real estate expenses in your new real estate career. I never would have believed there would be so many expenses involved with selling new homes Columbus GA and Phenix City AL. Our city is a major military installation, Ft Benning ,where thousands of military personnel and their family PCS, (Permanent Change of Station),or move for you civilians out there.
- Pre-licensing expenses: You can study on line or class room setting. In retrospect, I would recommend that you participate in a classroom setting instead of the online approach.
- CE-Continuing education. I spent $1500/year for 3 years to earn the GRI-designation (graduate real estate institute). Only about 5% of all realtors earn this coveted designation. It is well worth the expense to gain this knowledge.
- Annual State licensing fees: varies by state
- Regional/national fees.(if with a major firm):I am with RE/MAX-Executive Group and pay $400/year to the national franchise.
- Monthly office fees: This is dependent on your agreement with your broker/owner of the firm where you post your license. You could be on a 70/30, (70% of commission split to agent & 30% to broker/firm). I currently am on the 95/5 split. Under this plan I pay $1200/month to the office to participate in this program. Since I am a seasoned seller with 37 years sales experience, I had the confidence to select this commission program
- Columbus GA information MLS fees: Included in my monthly office fees
- State MLS:$40/month, provides expanded coverage for listings
- Zillow leads: I currently pay $275/month
- Vehicle expenses:$200-300 fuel expenses,$400/month vehicle payment
- Smart phone cell expenses: Currently $200/month
- Marketing expenses:
- Web site: Initial setup $500 plus maintenance fees for updates
- SEO site maintenance: My webmaster also shoots my videos & listing photos. He performs web site maintenance, consulting. Can be $150-$300/month.
- You tube videos: Lots more informative versus a silly slide show.
- Listing photos: My webmaster takes my photos and videos
- Radio: Affordable and it can definitely reach lots of potential customers/clients.
- Vehicle wrap: Mine cost $2300 put have had a 100 fold ROI (return on investment).
In closing, There are alot of real estate tutorials on the internet but I have the best article on this at my website. Columbus GA has 658 realtors. In most selling sectors 80% of the sales are produced by 20% of the sellers involved. The bottom line is to do this real estate career “full time” or not at all!
