Realtor Expenses Take a Big Chunk of our Commission Checks
The NAR fees, the State Fees, Errors and Omissions Insurance, Supra Fees, MLS fees, Desk Fees, Office Printing fees and Training fees all add up to a lot of expenses for any agent and especially for new agents.
Other expenses too like clothes, nails, shoes, gasoline, car repairs, car signs, advertising of listings and sometimes a nicer car. Plus we need equipment like cameras, signs, sign riders, open house gifts, advertising materials, web sites, computers, cell phones, iPads, ink, paper, stamps, colored flyers and a lot of office supplies. All these expenses come out of our commission checks too.
Then there are the non real estate monthly expenses; rent or house payment, insurance, food, credit cards, tuition, day-care, and many other expenses for the family household.
And don’t forget State and Federal taxes; either quarterly or one big chunk in April. We are all self-employed so we typically get the full amount (3% of the selling price) less the broker fees and then we must pay for all the above mentioned items.
On short sales, we spend numerous hours calling on the phone/computer dealing with the banks while working on the files. If we broke down our hourly rate based on these phone hours, would it look good? No, if we kept track of all our hours, we might not even make minimum wages.
Don’t forget the contracts, the counters, the numerous disclosures we prepare, and the reports we must order and sent out. This takes experience, time, and money. But we do not do billable hours so it comes out of our final commission check also.
Buyers and Sellers want to hire educated agents so we must do the continual training, drive nice cars and dress appropriately. If we don’t, we look like we have no business and then we are not hired. “Dressing for Success” is a true concept for most professionals and Real Estate is not any exception to that premise.
Most agents need to plan for the new year so they do not run into financial problems during the year. Financial planning seminars are important and usually professional will come to the agent’s offices and give free classes. Take advantage of these classes as they will help you have more money in your bank accounts and less stress in your daily lives.
Yes, we make a nice income but we pay out a lot too. Real Estate is fun and rewarding and most of us love it but we need to make good business decisions to make a living. Keep your receipts and plan for the future and you will be a successful Realtor.
Happy New Year 2012 and may your business flourish this year!
Call Kristin Hamilton at 909-557-6966 to list your home.
Inland Empire Homeowners, please call me for a Comprehensive Market Analysis to assist you with marketing your home for sale and getting the best price possible. Buyers, if you are planning to purchase real estate, let me assist you in finding the right home. Google me at Kristin Hamilton, Keller Williams Realty, Redlands, CA
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Need a Great Realtor in San Bernardino & Riverside? Google me here...Kristin Hamilton 909.557.6966.
Kristin Hamilton
Keller Williams Realty
DRE-01492138
909.557.6966
CALL ME AT (909) 557-6966.
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Every year, at many locations across the country, folks slide into their swimsuits & speedos to take a dip in ICE COLD WATER. And quite a few peeps right here in Lake Arrowhead also go "jump in the lake." NO, I am not one of them.
