The Top 6 Biggest Real Estate Agent Expenses

Posted by Premier Commission on October 08, 2015 in Cash Flow, Commission Advances, Real Estate Agent

Being a real estate agent is an outstanding way to make a living. The money making potential is limitless, and you get the freedom to work in the way that you prefer to. Like all independent careers, being a real estate agent does come with its expenses. Here are the top 6 biggest real estate agent expenses that you need to know about:

1. Getting licensed

Being a real estate agent is not a profession that you can legally jump into without proper licensure. This means that you will have to pay some licensing fees to get started, and should count this among your expenses when becoming a real estate agent.

2. Developing your real estate education

Even though you will learn a thing or two about real estate as you earn your license, there are still many things that you need to learn about real estate in order to be successful. The best way to effectively educate yourself is to invest in the resources that will bring you up to speed on all of the jargon and prepare you to make the right decisions.

3. Marketing

You cannot find people looking to buy or sell a piece of real estate by simply getting licensed, learning a few things and sitting on your hands. You must invest in marketing resources that will draw these people to you so that you can convince them that you are the best person to work with to buy or sell their property. This is only stage one of the marketing process for real estate agents.

Next, you must invest in marketing resources to actually close the deal. For seller’s agents, this means putting the real estate in a position to be noticed by those who are seeking that type of property; for buyer’s agents, this means investing in marketing tools to attract relevant sellers ASAP.

4. Getting around

Succeeding with real estate will require more than the internet. You will have to drive around, get to know neighborhoods and try to find — and sell your services to — independent sellers. You will likely have to invest in a reliable vehicle, and then pay to run and maintain it.

5. Other real estate agents

In many cases, a real estate agent will work with another agent to close the deal. The most common example of this would be a “buyer’s agent” and “seller’s agent” relationship. In this case, the two agents work together to close the deal. While this enhances the real estate buying and selling process for all parties involved, the buyer’s agent is not usually paid by the buyer, but rather by taking a percentage of the seller’s agent’s commission. This, in effect, makes working with the buyer’s agent one of the real estate agent expenses that the seller’s agent has to deal with.  For buyer’s agents, you are negotiating how much you get out of the commission; whatever you don’t get is an expense, because it is not going into your pocket.

6. Membership with professional real estate organizations

The connections that you need to succeed as a real estate agent won’t simply come to you. You have to go out and get them; joining a professional organization is great for this, as some of the top real estate pros in your area will be members. These organizations typically charge a membership fee.

Preparing for your expenses allows you to overcome them

Instead of a burden, your real estate agent expenses should be considered a part of doing business. This happens when you expect and prepare for them. Premier Commission is here to help you plan for your ongoing real estate expenses by allowing you to get your hard earned commission as soon as you close a deal. We’ll help you keep your cash flow steady so you can manage your expenses with ease! Simply apply online today.

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