Is it OK to get into the real estate market even though the market is going down?
Posted on July 17th, 2010 in Renting & Real Estate | 9 Comments »
sammijcarlos asked:
i know that the market isn't doing as well as it should, but i am wanting to be a real estate agent in southern california. is it a good time to pursue this career? how much commission does a avg. real estate agent make off of a home? i want to do something with real estate...is it better to be a agent, or a real estate aprasier?
Frederick Md Real Estate
i know that the market isn't doing as well as it should, but i am wanting to be a real estate agent in southern california. is it a good time to pursue this career? how much commission does a avg. real estate agent make off of a home? i want to do something with real estate...is it better to be a agent, or a real estate aprasier?
Frederick Md Real Estate
9 Responses
Homes In Chula Vista Ca
If you can handle a slow market initially, there’s no reason you can’t pursue a career as an agent. You will just want to understand what you’re getting into.
The commission is going to vary depending on who you work for. If you are the agent for one side of the transaction (either working with the buyer or the seller, but not both), then the 7% commission is generally split between the two agencies (3.5% each). After that, the agency itself usually takes roughly just over half, leaving you between about 1.5%, depending upon your contract with your agency.
There are, of course, other arrangements that happen, but that’s what was common in Minnesota when my wife was an agent a few years ago.
So. Cali might end up operating a little differently.
Malibu Real Estate
I think a real estate agent needs really good people skills -they have to interact with a wide range of different types of people. If that suits your personality, you might be very good at it. If you are considering it as a career, the current state of the market isn’t really that important – your long-term happiness should be the deciding issue!
Tempe Arizona Homes
Getting into real estate is always a gamble. This is one of those professions, well it’s essentially sales, that depends on how hard and smart you work it, and how great your customer service is. The one thing anyone thinking of getting into real estate needs is money in the bank. You need to be able to pay all of the dues and other costs associated with becoming an agent, such as association dues, MLS, business cards, advertising, software, etc. Plus, you need to be able to pay your bills while you’re working on those first few transactions. Before I got my own real estate license, I worked in a real estate office and saw some new agents not close a sale for almost a year. On the other hand, I saw other newbies who were in the office every day, had an advertising budget set aside, and closed their first transaction within 2 months of starting.
Whether the market is soft or going strong, you need good customer service skills and a solid knowledge of the market in your area. Now’s as good a time as any to start a career in real estate.
Commissions here in Florida are always negotiable and are one of the points agreed upon between agent and seller at the time of listing. I’ve seen commissions on MLS from 4% to 10%. That’s something that the agent always sets independently with each seller.
There’s always a need for appraisers also. Even in a soft market, people are refinancing their homes rather than selling and most of the time the lender will require an appraisal.
Which one you prefer to oursue may really depend on how much of a people person you are.
Superfoods
Yes, it is a good time to get into real estate. With the current market you actually have to work at it to make a living, which you will learn alot doing. Then when the market comes back it will be gravy.
Cellulite Treatment
There is never an easy time to get into real estate. If you want to have a long term successful career, you have to be willing to bust your tail in any conditions.
Torrance Movies
If you can stick with it for a while I believe this is the best time to get into real estate. Slow markets weed out agents that are not up to par leaving top agents. When the market does start to pick up you can live off of the overflow of the top agents. I am an agent in South Carolina. My opinion is that we are not in a Buyers OR a Sellers market. Right now, we are in the middle and everyone is on the sidelines waiting to see what is going to happen next. Real Estate has been around for over 200 years. I believe it will get better once we clear up the mess with the war. People are kinda scared we are going to be thrown into WW III right now.
Orlando Fl Real Estate
Do not get into being an agent because of the money that you might earn, instead look at the work you will be doing and decide if the work is what will excite you everyday and don’t think about the money. The truth is that if you do not have the excitment then you will not get the money. So what would you rather do appraise or sell?
Torrance Mls Listings
Yes, it’s a great time if you commit to it and treat is as your full time job. It takes years to build your client base… do not weed yourself out by spending money on any advertising. Get good business cards and do the rest with face to face meetings and your handshake. Start with friends and family and all of your networking groups. Target buyers right now, not listings. It’s a “buyer’s market”.
San Diego Homes For Sale
I’m glad that you are asking some questions before you get into the middle of it! I hope you continue to do so. How much you make depends on a few things that you have control over. First if you charge x%. You don’t get all of it! You have to share it with your broker and if you are the listing agent you share half with the other agent who then shares it with their broker. Then you have to pay expenses up front before you ever get paid. And by the way the seller will try to get you to take less or “contribute part of yur commission to them to get them to “give ” you the listing. So if you go with a company like RE/MAX you keep more of your 1/2 of the commission but, you still pay for expenses. Rent, copies, phones advertising etc.
My best advice? Don’t go with the first broker-interview them! You will make more as an agent couple of hundred as an appraiser, couple of thousand as an agent. Start to plan now. Get everyone that you now into a database-OUTLOOK? Find a way to meet as many people as possible now and keep doing it through your entire career. Be picky about what the brokers offer you-they are not all the same and you deserve the best! So find them and make them convince you that this is the best choice for you. Good luck. 6 months of cushion in the bank will help tremendously.