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Tobin S.

(10,418 posts)
Fri Jan 1, 2016, 07:09 AM Jan 2016

Do we have any real estate agents here?

My wife and I are both looking to make career changes. If we become real estate agents, she could pursue it full time and I could part time while keeping my current job until we become established. My wife has natural sales skills and I have a business degree. Between the two of us, I'm thinking we could do well.

What do we need to know? What advice do you have?

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mnhtnbb

(31,316 posts)
1. I held a California real estate sales license and worked as an agent from 1977-79
Fri Jan 1, 2016, 07:34 AM
Jan 2016

out of an office in Woodland Hills (San Fernando Valley).

Be prepared to spend a lot of hours and your own $$ up front to develop clients. You only get paid when you close a sale.

Take a look at the number of licensed agents in your county. Then look up the number of sales closed. Figure out the
number of those sales you need to take away from other agents in order to generate the income you want.

Kaplan--one of the leading real estate education companies--quotes this info on their website for Ohio:

According to Salary.com, most real estate agents earn on average between $36,566 and $47,610 annually. How much agents make depends on the number of transactions they complete, the commission paid to the brokerage, and their split with the sponsoring broker. If you are talking with a franchised agency, be sure to ask what percentage of each sales commission is deducted and sent to the franchising company. Top producers earn a lot more than the average real estate agent. Each real estate office sets its own standards for top producers, but it's probably safe to say that a top producer would need to sell at least one home a month to qualify. Mega-stars earn $200,000 and up per year. Very few real estate professionals earn a salary versus commission.


https://www.kapre.com/real-estate-courses/ohio/faqs


I never earned close to $35,000. in the two years I worked in real estate in California--and I was in it when the average price of houses sold in the office where I worked
was around $150,000. I spent a lot of time working with buyers--which, unless you have a large network of people whom you know that would list their house with you
when you first get started--is what you'll do. I did a lot of searching for houses for each client, pre-screening, showing multiple houses to clients and was thrilled if I ended
up with a sale. Most of the time, I didn't.

It's a tough business. You will work a lot of evenings--when you list--and a lot of weekends if you show houses to buyers. You'll have a lot of up front costs and no guarantee of income.

I quit the business and went back to the field in which I held my master's degree when I got divorced because I needed a dependable income each month in order
to divorce. If you have significant debt obligations--mortgage, student loans, etc.--I would think long and hard about giving up your day job to become a realtor.

Just my $.02.


Edited to add: Have you taken a look at State of Ohio government jobs? They list by county here: http://agency.governmentjobs.com/ohio/default.cfm?clearSearch=1

Tobin S.

(10,418 posts)
2. Thank you.
Fri Jan 1, 2016, 08:08 AM
Jan 2016

We live in Indiana. I have looked up salary figures for our area and it's comparable to Ohio. My wife makes minimum wage part time so I think anything would be an improvement at this point. She made less than $12,000 last year. I wouldn't quit my job, initially.

I will check those agents and sales figures. I appreciate your post.

mnhtnbb

(31,316 posts)
3. Why did I think you were in Ohio? Eh...you are right, though,
Fri Jan 1, 2016, 08:21 AM
Jan 2016

it works the same way everywhere. What's tough, though, is that it takes more closings to make a decent income if you
live in an area where the average sales price is lower.

The Velveteen Ocelot

(115,267 posts)
6. Whatever you do, don't watch "Glengarry Glen Ross."
Fri Jan 1, 2016, 12:34 PM
Jan 2016

It'll put you off real estate sales forever. But seriously, it's a tough start-up and sometimes business is bad and there's nothing you can do about it. I'm not in the business but a close friend is and he describes it thus: "Sometimes it's chicken; sometimes it's just feathers." He really had a tough time after the '08 crash. I won't say you shouldn't do it; just be sure you have some other income sources.

jmowreader

(50,447 posts)
7. Buy a really impressive-looking car and some expensive, tailored suits
Fri Jan 1, 2016, 12:44 PM
Jan 2016

Being a successful RE sales person is 60 percent appearance, 25 percent being able to read people, 15 percent technical knowledge. My company used to employ a woman who was our main ad rep for the real estate companies. Cutting out a lot of internal intrigue, she eventually quit working for us and went into the real estate business for herself. For about three months she didn't sell a thing. Then she stepped into a phone booth and emerged as SuperRealtor! - she traded in her 10-year-old Toyota for a Lexus, bought some expensive suits, got an expensive haircut, started wearing makeup and spent $500 on a professionally-done portrait - and the month after this happened, she started closing three to four houses a month. How she approaches selling homes has not changed, but now that she LOOKS like a serious, professional Realtor she is treated as one.

Both of you are thinking of doing this. That's good. You will need a name for your enterprise...Grouseland Realty Group might be good if it hasn't already been taken.

Also...how's your negotiating skill set?

Gidney N Cloyd

(19,780 posts)
17. When you wrote "professionally done portrait" I immediately flashed on this commercial
Fri Jan 1, 2016, 03:47 PM
Jan 2016

(see the pose at the end)

TexasBushwhacker

(20,043 posts)
8. Since your wife currently works part time
Fri Jan 1, 2016, 12:55 PM
Jan 2016

Is she ready to commit to working no less than 40 hours a week? Does she have a nice car to drive around clients?

PasadenaTrudy

(3,998 posts)
9. We need HVAC people out here in CA
Fri Jan 1, 2016, 01:51 PM
Jan 2016

Friend of ours can't find enough people for his business. Starting pay is $38 an hour. Just sayin'.

PasadenaTrudy

(3,998 posts)
14. I hear ya...
Fri Jan 1, 2016, 02:53 PM
Jan 2016

I was just wondering if it would be a good field to get into, anywhere in the country. It's very expensive and crowded out here, but the economy is doing well.

Tobin S.

(10,418 posts)
15. It depends on where you are, I think.
Fri Jan 1, 2016, 02:59 PM
Jan 2016

I have a brother-in-law who lost his job when a GM plant closed in Dayton, Ohio. As a part of a severance agreement, he was allowed to pick a trade that he would like free training in. He chose HVAC. Well, a lot of other people did, too. Although he completed the training he couldn't find a job in the field due to saturation of qualified candidates. He drives a forklift now for a beer distributor.

elleng

(130,126 posts)
10. No experience here at all,
Fri Jan 1, 2016, 02:00 PM
Jan 2016

but be aware (I assume you 2 realize this) there maybe/are likely to be times of little activity, depending on LOTS of variables. GOOD idea that you can do it together!

Good luck!

Happy New Year!

Fla Dem

(23,339 posts)
18. I would look into a large real estate firm like Watson, Coldwell Banker, Weichert,
Sat Jan 2, 2016, 03:30 PM
Jan 2016

Keller Williams or whatever large firm is in your area. Some offer training for new agents. You will also have to become licensed in your state to sell real estate and take required courses.

Selling real estate is a demanding career. Sometimes lots of research, time and leg work with no results. Also requires some out of pocket costs for flyers, mailing lists and mailings to get your name out in the community, photography and ad buys in the local papers or RE magazine.

Natural sales skills are a plus, but you also need a level temperament, because many times you are dealing with clients who are never satisfied and demand much of your time and attention.

Real estate is a good business to get into when the market is booming, Lots of people jumped in in the 90's when houses were flying off the shelves. Anyone could sell a house. A lot more difficult in a moderate or down market. Then there is a lot of competition and sellers look to the top agents to list their homes. Many RE agents dropped out when the recession hit. Also, firms may drop you if you don't make your quotas.

Find some RE magazines for your area. They are generally in supermarkets or walk into a RE office and ask for one. See which companies have the biggest spreads and most listings.

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