Posted by admin on December 4, 2009 under Real Estate Careers | 
The motivation for many people to get a real estate license and enter the field of real estate is the amount of money that it is possible to make in the real estate market. Although it is clear that it is possible to make a great living as a real estate agent or broker, many people do not understand just how real estate agents and brokers get paid.
Most often real estate agents are paid by commissions based upon the sale price of a property. The commissions of a real estate transaction are negotiable and tend to range anywhere from 1% all the way up to 10%. For our purposes here we will use a 5% commission rate example. So for a $250,000.00 property, the 5% commission paid upon the closing of that property will be $12,500.00. That does not mean that the agent walks away with $12,500.00. The broker of record will receive a predetermined portion of the commission.
The most common arrangement of payment between a broker and an agent is the commission split. Depending on what has been agreed to when the broker agreed to hold the agents license, a certain percentage of the commission will be paid to the broker and the remaining percentage to the agent. Assuming the traditional 50/50 commission split, each of them will receive a commission check of $6250.00 at the closing of escrow on that one property.
As a real estate agent with an established client base the promise of prosperity is tremendous. Using the example sale and assuming only one property closes per month, a real estate agent is looking at making $75,000.00 a year. As real estate agent that is dedicated and in tune with the market in which they are working has a much greater income potential than commissions from one single closing per month, and when you are dealing with commissions of this size you are talking major increases in income. Even two closings per month could raise your annual income to $150,000.00.
As a real estate broker the commissions come even easier to you. By holding the real estate license of the agents and maintaining their space in your offices to whatever degree you are contracted to do so, you will collect your part of the commission split not just from the one agent, but every agent under your brokerage. If you have five agents working out of your office each closing just one deal per month than as their broker you would be making $31,250.00 per month without ever showing a property.
Whether you are an agent or a broker there is enormous potential for income generation that is only limited by your own willingness to work at it. As an agent, experience and extensive knowledge of the real estate market will make you an income you never thought possible. As a broker, surrounding yourself with experienced and knowledgeable agents can build a fortune. Even when the market is slowed, real estate has the potential to build more wealth than any other career.
Posted by admin on December 21, 2009 under Real Estate License Basics |
If you have been getting your real estate license and starting a new career in real estate, you will need to understand the process of listing and selling a home. Getting clients to list their homes with you and selling those homes is the bread and butter of a real estate agent. If you can master this art then the sky is the limit to the income potential of your career in real estate.
Getting a client to list their home with you requires a great deal of knowledge about the area you are taking the listing in, and on recent sales of properties listed in and around that area. Before your scheduled listing appointment do your due diligence on the property. Find comparable properties that have sold and some that have been on the market for a while. Know the neighborhood that the house is in. Research will be instrumental in securing the listing agreement.
By the time you have your listing appointment, you should know as much or more about the property and the area around it than even the current homeowners do. Confidence in your knowledge of the market is what a potential seller wants to see in the agent they list their home with. Sellers will need to feel that you cannot wait to sell their home. When they feel like you are committed to the sale of their home is when they will commit to you by signing the listing agreement.
Once you have secured the listing the work to market the property begins. Knowing what does and does not excite a buyer when they walk through a home is something that clients need the services of a real estate agent for. Make certain that the home shows in the best possible light for those potential buyers that walk through. Signage, advertisements and other marketing materials to ensure that the home is seen by the most possible people will need to be created and distributed.
Scheduling open houses to get potential buyers into the home is an important part of the selling process. Having what is called a broker’s open is a great way to make other real estate agents in the area aware that the property is available. They will be able to have a feel for the home in case they have any buyers that may be right for it. Then there is the open house which will invite not just real estate agents and brokers, but potential home buyers to walk through the property. Open houses and showings are crucial to selling a property. The buyer will need to be able to visualize themselves in the home before they will make an offer on the property.
Now that you have the listing and the house has been seen by as many people as possible you are nearing the end of the process. If the property has been priced properly and staged well for the open house and showings, the final step of the process will be accepting an offer. Potential buyers will make an official offer in writing for approval by your seller. Your seller has the option of turning down unacceptable offers or making counter-offers to a potential buyer. Once an offer that meets their approval comes in, your seller accepts the offer and you are ready for scheduling the closing of escrow and receiving your commission check.
Experience only makes the process easier each time since the research has already been done. With each listing you’ll learn even more about the neighborhoods and properties, making you a master at the art of listing and selling a home.
Posted by admin on December 17, 2009 under Real Estate Careers, Real Estate License |
As the holder of a California real estate license, you know that you will require continuing education in order to maintain your license. There will be mandatory courses to be completed to keep your license current. California real estate licenses are issued for four year periods. At the end of that period, you will have to show proof that you have met the continuing education requirements and submit the required applications to be issued a renewed real estate license.
Continuing education requirements in California call for 45-48 hours of coursework to be completed at each licensing renewal. At the first license renewal there are specific classes that are required. You must attend courses in Fair Housing, Risk Management, Agency, Ethics and Trust Fund Handling. These must be separate courses that are three hours each. Additionally you will need to complete 18 hours of continuing education in consumer protection and 15 hours in either consumer protection or consumer service.
After the first renewal of your license, the required classes for continuing education are just slightly different. Instead of the five separate three hour courses, all the same subjects with the exception of Fair Housing will be necessary. You have your choice of three hours of class work on each of the four core subjects or one six hour course that covers them all. You will also need a three hour course on Risk Management along with 18 hours of study in consumer protection. The remaining hours needed to make the 45 hours of required continuing education can be your choice of consumer protection, consumer service, or a combination of the two.
Once you’ve finished, there are forms available on the California Department of Real Estate that will need to be completed. There is the renewal application, a form for proof of continuing education, a state Public Benefits Statement and a proof of residence certification. These should be filled out and submitted to the DRE with any payment due in time to be processed before your current license expires. The DRE will mail you a renewal reminder notice as your expiration date draws near, but it is crucial that you keep track of your own expiration date.
This process can also be done entirely online through the use of the California eLicensing online system. The required forms can be completed online and the course numbers of your continuing education classes and dates attended can be entered online as well. Payments can also be made online, making this the fastest and most efficient way of keeping your license current. Whether online or through the mail, they must be completed or postmarked by midnight on the day your license is to expire to maintain a current standing.
Posted by admin on December 7, 2009 under Real Estate Schools |
When you are looking into getting your real estate license and attending real estate classes you will find that there are a few different options available to you. You can choose to attend courses at a real estate school in a classroom setting. This will require you to locate a school and find the class schedule. The schedule will need to meet the needs of your work schedule or you will need to either find a new school or adjust your work schedule to meet your school needs. If scheduling classes in a traditional classroom setting proves to be an obstacle for your everyday life then online real estate classes may be the better choice for you.
Online real estate course can be done at a more flexible pace. There is no need to worry about what time the class is starting since you will be free to attend sessions at your own pace. You will be able to set a class schedule that fits into your life which can indirectly contribute to your success in learning. When you are free to set your own pace you can be much more productive in your studies. You will not have to rush around trying to make it to class on time or hoping you brought your books and assignments. Your class will start when you are ready and all of your class materials are with you wherever your computer is. Although online classes may take a bit more self-discipline in order to maintain the lessons, the lesson in self-discipline is one that will contribute greatly to your success as a real estate agent.
Online real estate classes can also offer you education in maneuvering in an online environment. To be successful in real estate you will have to be as comfortable in a virtual environment as you are in person. The real estate market of today requires a tremendous amount of experience and savvy on the internet and taking classes in an online classroom offers you the advantage of achieving additional familiarity in this arena that is focused on the real estate market. Without needing additional classes to learn how, you can incorporate learning how to use the internet for your career in real estate into your regular course schedule.
Choosing to go to real estate school is a first step toward a career that offers unlimited possibilities for those that are willing to learn the art that is being a first rate real estate agent. Your choice in how to receive this education is the foundation on which you will build your real estate career and the strength of this foundation will determine your level of success. Traditional classroom environments are available for those who choose a more group approach to the learning process, however learning to be fluent in an online environment is something you should try to work into your classroom work. Online classes in real estate can streamline your learning process by making learning how to be confident in your skills on the internet part of every course. The flexible schedule and online experience are big bonuses in choosing an online real estate school.
Whether you are leaning toward a traditional or online real estate school, consider the added skills that you can gain from an online environment to help you become a successful real estate agent.
