What does it cost just to call yourself a Realtor® ? Let's run the numbers.......

By
Real Estate Agent with John Aaroe Group BRE #01708344
http://actvra.in/t4r

What does it cost just to call yourself a Realtor® ?   Let's run the numbers.......

Have you ever thought about how much money it costs just to call yourself a Realtor® ?  We as agents know that it is expensive, but let's get right down to it and crunch the numbers.

For the sake of example, I will be using my own scenario as a licensed agent in the state of California, and we'll be basing this on an annual amount.

$155.00    - National Association of Realtor Dues
$184.00    - California Association of Realtor Dues
$150.00    - Local Association of Realtor Dues
$500.00    - MLS Access Fees
$1,200.00 - E&O Insurance
$85.00     - Business Cards
$385.00   - SupraKey Dues
$475.00   - SupraBoxes
$600.00    - Increased amount of auto insurance required by broker
$900.00    - Website
$600.00    - Open House Signs
$300.00    - For Sale Signs
$120.00    - Sign Riders
$375.00    - Continuing Education and Licensing Requirements

$6,029.00 - TOTAL

Now just to repeat, this is the total expense JUST TO CALL YOURSELF A REALTOR® .  So in monthly terms, it costs us $500 PER MONTH, just to call ourselves Realtors.

This has nothing to do with the actual expenses that we incur, which vary from one agent to the next, depending on volume, activity, location, etc.  Let's just give an example of some of these types of expenses:


$2,400.00 - Office Expense
$3,200.00 - Advertising
$1,200.00 - Auto Expense (just for real estate related activity)
$2,400.00 - Client Gifts
$1,200.00 - Travel Expense

 

So here's a MINIMUM of at least $10,000 in operating expenses on the average that are incurred.  And this has nothing to do with income taxes, broker splits, seller/buyer concessions, etc.

For those of you out there in the public realm reading this, take note:  It is not cheap nor easy being a licensed real estate agent.

Ya'll need to 'ppreciate.  Ya know what I'm sayin'?

 

 

 

 
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  1. Cindy Edwards 02/16/2012 12:31 PM
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realtor expenses
ralph gorgoglione
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Comments 13 New Comment

Rainmaker
483,990
Jill Sackler
Long Island's South Shore Real Estate Agent
Charles Rutenberg Realty Inc. "Said and Done!"

$1,200.00 for E & O? That sounds like an awful lot. I pay $450.00 and I've had agents tell me that was a lot.

February 18, 2012 05:12 PM
Rainer
30,267
Peter Michelbach
i Sell Real Estate

Ralph, let me copy this example please, and thanks for sharing.

I incure 40 % less expenses here in W. Australia.

I also would never take  a listing on bord if the seller would not pay upfront for all marketing costs: photography, for sale sign, internet advertising, and all media (newspaperr ads). Usually around $1,500/house; however for the last sale the seller, on a $750,000 incured only $500 expenses; sold before 1st home open, at 2,85 % comm less, 20% for my broker partner.  Thanks- great Post!

February 21, 2012 04:37 AM
Ambassador
1,065,379
Melissa Zavala
Broker, Escondido Real Estate, San Diego County
Broadpoint Properties

That's why you need to close one 500k deal per year. You'll cover your expenses and the rest is just gravy (and a way to support your family ;-)

February 22, 2012 07:14 PM
Ambassador
726,043
Debbie Laity
Your Real Estate Resource for Delta County, CO
Cedaredge Land Company

It seems like there is always some business bill to pay. It's not cheap, but the business is in my blood, and I love it.

March 10, 2012 08:15 PM
Rainmaker
269,225
Inna Ivchenko
Los Angeles / Valley Homes
Mannis Real Estate Group

It is really interesting what Peter shared. I'd wish we could ask upfront fees. The only upfront( i believe, here in California) is staging. All marketing, photo, video, prints, open houses food and drinks, etc. ~ all that are our upfront expenses, risk we take....

March 12, 2012 10:08 PM
Ambassador
912,008

Ralph Gorgoglione

California Real Estate (800) 591-6121
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