Congratulations on making the decision to become a real estate agent. It is an exciting career path and one filled with many rewards, both tangible and intangible. However, as with any new business, there are startup costs involved in becoming a real estate agent. You’ll need to factor these costs into your timeline when transitioning from a job to being a self-employed entrepreneur.
Estimated Cost: $350
In Florida, the Florida Real Estate Commission (FREC) requires that all new applicants complete 63-hour of pre-license education. You’ll need to make sure that the school that you select is licensed by the Division of Business and Professional Regulation (DBPR) to offer this course, known as FREC Course I. Different schools offer the exact same course for various prices to make your decision based on the school that you think will prepare you to pass the exam best.
Check out our FREC approved course by clicking here.
License Application & Background Check
Estimated Cost: $170
REAL ESTATE BROKERAGE FEES
Estimated Cost: Varies
Brokerage compensation plans come in all shapes and sizes from a 50/50 split to 100% commission brokerages. Most brokerages also charge some sort of a month fee ranging from $50 to over $450 a month. Usually the higher the broker’s split, the lower the monthly set fees are. When interviewing brokerages, be sure to get a list of all fees that you will be responsible for paying in writing.
Learn more about our sister company, CENTURY 21 OneBlue by clicking here. Century 21 is the most recognized name in real estate for the last 20-years and offers the best new agent training in the industry. Learn more at OneBlueRE.com/Join or give them a call at 844.CALL.C21.
REALTOR + MLS DUES
Estimated Cost: $1,500
1ST YEAR MARKETING EXPENSES
Estimated Cost: $2,500
You’ve done it. You passed your pre-license class test, the state test, found a broker, and you’ve joined the National Association of REALTORS®. Whew! You’re finally ready to start closing deals and cashing commission checks! Whoa, not so fast. Who knows about you? Like any new business owner, you’ll need to develop a marketing plan and start marketing your business. According to NAR, on average 31% of REALTORS® spend in excess of $1,000 per year on marketing. Top producers spend more than that per month! You should have some money set aside to begin marketing your new business and obtain your first customers. Once you have your first closing, it is important to set aside 20% of your commission to put towards future marketing efforts.
Alternatively, you can join a brokerage like CENTURY 21 OneBlue that provides you with marketing support and leads to help get you started. This will minimize your upfront expenses since you’re able to leverage the power of the brokerage and the brand.