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re: How tough is being a real estate agent?

Posted on 2/5/18 at 11:40 am to
Posted by oreeg
Baton Rouge
Member since Mar 2006
5438 posts
Posted on 2/5/18 at 11:40 am to
That 3% is split with the broker. Sometimes it's 50/50 but if you can get with a good broker, you can get 70/30.

You also have to consider taxes need to be taken out.

Also, marketing costs are all out of pocket.
Posted by Shankopotomus
Social Distanced
Member since Feb 2009
21087 posts
Posted on 2/5/18 at 11:42 am to
Here.

I'll just say this, Realtors overall tend to have a bad reputation in some areas because it's true there are a lot.of shitty ones.

However, there are plenty of great ones too who will do a lot for you besides just paperwork (although that is important.)

It's like any sales career, you get out if it what you put into it
Posted by DarthRebel
Tier Five is Alive
Member since Feb 2013
26142 posts
Posted on 2/5/18 at 11:44 am to
Here in DFW, there is market saturation of realtors. The housing market is hot, but there are so many realtors out there now. I figure most of the newbies are not making that much (decent money though), but the brokers are probably just raking in 7 digits easy.

You hardly have to do anything here though, the houses sell before they are listed.

Posted by TH03
Mogadishu
Member since Dec 2008
172004 posts
Posted on 2/5/18 at 11:45 am to
quote:

You hardly have to do anything here though, the houses sell before they are listed.



With 15 other offers all above list.
Posted by TheHumanTornado
Baton Rouge, LA
Member since May 2008
4136 posts
Posted on 2/5/18 at 11:46 am to
My wife is a realtor. She worked from 10 am to 8 pm yesterday and about the same on Saturday. Right now she is busy so she is working about 80 hrs a week. Yes there are some moments that aren't busy for her but she makes it up with these kind of weeks. This is only her second year but things are ramping up. I will admit, watching first hand, that those who think it is a joke are mostly off base. There are plenty of them who don't care but she hustles and earns what she gets.
Posted by go_tigres
Member since Sep 2013
5494 posts
Posted on 2/5/18 at 11:48 am to
I was in real estate in my early to mid 20's. No wife or kids, I was able to work 6-7 days a week. I made really good money for my age, but I focused on vacant land and multi-family housing. On vacant land, the commission used to be 10%. On a 100k deal, I'd walk away with 6k if I was both listing and selling agent and after the broker's 40%.

My wife's aunt has been a realtor in Dallas for 3 years now. She hadn't sold a thing yet. She's done a few leases, but no sales.

A good agent will do 3 million a year or so, which, after splits and broker fees, would net you about 90k income. That doesn't factor in your advertising expenses though. I used to spend one to two grand a month, but I was on the cheap side.
Posted by deeprig9
Unincorporated Ozora
Member since Sep 2012
76143 posts
Posted on 2/5/18 at 11:49 am to
People I know like to get real estate license just so they can dabble for extra income for their own transactions and some family/friends. Especially in this day and age where buyers can basically do all their searching and vetting online to find their own houses, then use their realtor buddy to go through the rigmarole closing the deal.
Posted by ForLSU56
Rapides Parish
Member since Feb 2015
5582 posts
Posted on 2/5/18 at 11:50 am to
First and foremost ... it takes a lot more time/work than most people think to bring a sale to closing...and keep in mind....a REALTOR is relying on several other parties to do their job correctly and in a timely manner ... loan company, title company, home inspector, the other agent, the buyer and seller.... etc. etc.

RULE #1 ... it ain't sold until the papers are signed at the closing table.

Typical commission in the GBR area usually runs at 5% (some areas are still 6%).

IF a REALTOR gets "both sides" ... meaning they have the seller and buyer as clients...the agent gets the total commission minus what the brokerage charges (say 10% of what the agent earns ... varies broker to broker).

If the agent brings the seller or has the buyer .. the two agents split the commission.

GBRAR (EBR, WBR, Ascension, Livingston, Iberville, EF, WF, Point Coupee, St. Helena) currently has about 2200 members.

More info here. GBRAR website
This post was edited on 2/5/18 at 11:51 am
Posted by Tiger Prawn
Member since Dec 2016
26356 posts
Posted on 2/5/18 at 11:54 am to
quote:

At 3% commission, if they can close two home sales a month, that should be good income.

They split that 3% with the broker they work under. Plus marketing expenses are out of the realtors pockets. Getting started isn't easy either because it may take several months from the time that realtor first starts working with a buyer/seller to the time they actually get to closing and the realtor actually gets paid.

quote:

Can't imagine how many real estate agents there are in BR.

Not sure about BR, but I know a realtor in NOLA that complains about it being an over-saturated market nowadays because of all the part time realtors doing it as a 2nd job on nights/weekends and stay-at-home moms trying to sell houses on Facebook.
Posted by TheHarahanian
Actually not Harahan as of 6/2023
Member since May 2017
24372 posts
Posted on 2/5/18 at 11:54 am to
Google for homes for sale in the area your client likes.
Drive the client around the area looking at those houses.
Act as middleman to communicate offers when the client finds a house he likes.
Know how to fill out forms correctly.
Show up for the closing (optional).
Posted by TigerNlc
Chocolate City
Member since Jun 2006
33222 posts
Posted on 2/5/18 at 11:55 am to
quote:

It's a real killer job.

Posted by K E V 8 4
Member since Jul 2010
628 posts
Posted on 2/5/18 at 11:55 am to
quote:

I think they give half of their commission to the parent company if they work for one.


I think there's another arrangement, whereby the agent pays a fixed monthly fee to the broker and then gets the full 3%. Obviously, a high-producing agent would want that type of structure. For a part-time or low-producing agent, the split of the 3% probably makes more sense. I'm not a realtor, just passing on the little I know.
Posted by kadillak
Member since Nov 2007
7641 posts
Posted on 2/5/18 at 12:02 pm to
While you do have to pay for your own marketing, some of those expenses are tax deductible. Some companies have automated social media marketing tools that posts your listings to FB, Twitter, etc automatically. Some charge for that, some don't.

You will have fees to pay to the board of Realtors (Greater Baton Rouge Association of Realtors) and you have to take 12 hours of continuing education courses every year to keep your license. You can do these courses online.

Some companies charge additional fees to cover supply expenses whether you use those supplies or not.
Posted by East Coast Band
Member since Nov 2010
67017 posts
Posted on 2/5/18 at 12:04 pm to
With sites like Zillow, I figured real estate agents would go the way of TV repairmen.
Why can't there be a way to buy and sell a house through websites, that won't involve having to shell out 5%, or $15 grand, off a 300k house?
Posted by shotcaller1
Member since Oct 2014
7501 posts
Posted on 2/5/18 at 12:05 pm to
I see lots of college dropouts/failures go this route. And they talk about it a lot on Facebook.
Posted by seawolf06
NH
Member since Oct 2007
8159 posts
Posted on 2/5/18 at 12:07 pm to
Realtors will be obsolete in 10 years, just like car dealerships and taxi services. The only thing really keeping them in business are laws and regulations which serve as protection rackets.

As a buyer, I was able to do everything the realtor could on Redfin.com and many times received notice of a new house before she notified me.
This post was edited on 2/5/18 at 12:10 pm
Posted by SOLA
There
Member since Mar 2014
3822 posts
Posted on 2/5/18 at 12:25 pm to
You have the have Facebook and constantly talk about how you love your job and how you have the best clients.
It’s the opposite of a nurse
Posted by chalmetteowl
Chalmette
Member since Jan 2008
55421 posts
Posted on 2/5/18 at 12:35 pm to
quote:

You have the have Facebook and constantly talk about how you love your job and how you have the best clients.
It’s the opposite of a nurse
don't forget the 80s glamour shots...
Posted by StealthCalais11
Lurker since 2007
Member since Aug 2011
12555 posts
Posted on 2/5/18 at 1:23 pm to
quote:

As a buyer, I was able to do everything the realtor could on Redfin.com and many times received notice of a new house before she notified me.


This. I get several calls a week on "a possible new deal" from one of the guys. I'm like "bro, I've already seen that property, did my own vetting, & deemed it to not be worth it last week". I've told him unless he finds an off the market deal don't call me, but he doesn't seem to get the message. I swear his damned realty service has me on a list
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