Are you a Mom interested in entering the real estate industry? If you’ve ever pondered jumping into real estate, you want to have a good idea of what kind of costs you will incur as you start your business. Because there are costs involved in becoming a licensed agent.
First and foremost, you will have to pay for schooling. You probably have some options in terms of where (online vs. offline) and their respective pricing. But you will still have to pay. You’ll be looking at anywhere from $250 to $800 for the licensing classes.
There are a few instances where brokers may pay for your education. Especially if you are currently working in the industry in some capacity and your boss wants you to become licensed. In that situation, you should definitely get your employer to foot the bill. Some brokers even have their own school where tuition will be refunded if you sign with them as a licensee.
And don’t forget to ask the school (whether online or offline) if there is any tuition assistance available. For example, active duty military can typically get discounts or assistance. It never hurts to ask. There’s a lot of competition out there. In fact, some online schools will beat out their competition’s price by 10% if you show them the numbers. So it pays to do a little legwork in order to save a few bucks on the schooling.
Another cost that you won’t be able to shake is the state exam and the state license. Each state has an exam you will be required to take and pass before a license will be issued to you. Exam fees can range from $25 to $200 but can also include other fees, such as the state license, so it’s important to understand what is included. Each state has a department of real estate website, or at least one page dedicated to professional licensing and all your education, exam and fee requirements will be found there.
Additional up-front costs can include fingerprinting and background check fees. Again, this information may be found at your state’s department of real estate website.
But what about after you have the license in hand? When you interview brokers and decide where to hang your license, you will find that each broker is different in terms of what you can get and what is expected of you. Many will expect you to attain membership in the local Association of REALTORS and the fees associated with that will also gain you membership into the state and the national associations as well. But you may have to fork out anywhere from $100 to $200 for the annual fees. Not only will this provide you entry into the largest professional association in the nation, but it will also provide you access to the MLS, also known as the Multiple Listing Service. This is important, as most homes for sale and rent can be found in your regional MLS.
Other start-up costs can be business cards and signs. There are ways to cut costs. You can have some temporary cards made inexpensively online through websites such as VistaPrint. And the same is true of signage. With a little bit of searching you can save $20-$100 on your initial order of signs by just looking around online.
You will also need a lockbox key. This will run you somewhere between $80-$120. This is the gadget that will allow you access to homes with keys kept in lockboxes. This is pretty much a must-have. And if you plan on working with sellers, you will want at least one lockbox in your inventory. This will also run about $80-120. But it’s good to have on hand so you’re ready when a client is listing his home with you.
Starting up a career in real estate isn’t expensive, but it does take some money. You’ll want to budget at least $500 to $1000 to begin your real estate business, but if you think of it as an investment towards a long and successful business, it’s well worth it!
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