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The Cost of Being a Real Estate Agent [Infographic]

If you're like most people, deciding on a new career has lots of hidden cost and opportunities, but finding a break down of what is really involved in becoming a successful agent can be a challenge. This infographic is part of a series we are doing on being a real estate agent, what other agents are spending on advertising and marketing, what you can expect to spend yearly and how you might budget.

Good luck. Let us know what you think. http://placester.com/academy/

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The Cost of Being a Real Estate Agent [Infographic]

  1. 1. Gas&Maintenance $0.21 /mile AAAestimateforamedium-sizedsedan. Itmaynotsoundlikemuch,butmany Realtorslogmorethan20,000 milesayeamilesayear. AutoInsurance $1,020 /year AAAestimateforfullcoverageonaAAAestimateforfullcoverageona medium-sizedsedan.Thegoodnews: manyautoinsurancecompaniesoffer discountsthroughtheNAR. Foragentslookingtostayrelevantandknowledgeableina changingindustry,competitioncomesatacost. EDUCATION& ENRICHMENT AveragevehicleexpenseforRealtorsin2012, accordingtotheNAR $1,790/year Somelessobviousexpensescantakeasignificanttollona realestateagent’sbottomline. OTHER COSTS Realestateagentsputanestimated3.6billionmilesontheir carseachyear,previewingpropertiesandshuttlingclients fromhousetohouse. TRANSPORTATION Gettingthewordoutaboutyourrealestatebusinessisone ofthemostdifficultaspectsofthejob.Itcanalsobeoneof themostexpensive,particularlyfornewagentstryingto growtheircustomerbase. 31%ofrealestateagents spendover$1000a yearononline marketingefforts. 17%ofagentsemploya marketingassistant. MARKETING& ADVERTISING RealEstate Website $100-500 /month WhetheritWhetherit’sanIDX websitewithlistings,a realestateblog,orboth, amarketingwebsite includesmanysmaller costs,including developmentanddesign, hosting,andSEhosting,andSEO. 70%ofagentssay they’vehadawebsite foratleastfiveyears. Online Advertising $100-500 /month PPay-per-clickads, Internetleadgeneration, socialmedia,premium placementonbigreal estatesites,andother onlinesourcesnowmake upover55%ofagents’ totaladspend.totaladspend. Print Advertising $100-500 /month YYardsigns,mailers, billboards,newspapers, andrackpublicationsare justafewoftheways agentsuseprinttoget thewordout. 40%ofagentsstilluse directmailmarketing. Continuing Education $50-100 /year EachstaterealestateEachstaterealestate authorityrequiresagents totakeanywherefrom 10-30credithoursof continuingeducation everylicensurecycle (typically2-4years). Conferences $50-1000 /each ConferencesofferanConferencesofferan opportunitytonetwork withotherprofessionals andkeepupwiththe latesttrendsinreal estatetechnology. Additional Courses& Designations $100-500 /course SupplementarySupplementary courseworkadds expertiseinniche marketsandemerging technologiestoraise yourprofileamonglocal competitors. Income Taxes $VARIES YYourtaxburdenwillvary basednotjustonyour income,butalsoyour location.Californians,for instance,bearatop incometaxrateof13.3%. Health Insurance $50-500 /month ThetheNARoffersbasicThetheNARoffersbasic coveragewithits RealtorsCoreHealth Insuranceprogram,but thoselookingforbetter optionstoinsuretheir familiesmustcontend withexpensiveindividualwithexpensiveindividual policies. Community Outreach $50-100 /course 13%ofagents(20%of13%ofagents(20%of thoseearningmorethan $100k)supportthe communitythrough sponsorshipslikeLittle League,highschool plays,andtheirlocal church.church. 49%ofrealestateagents spendover$500a yearoneducation andtraining. 16%ofagentshave workedwithareal estatecoach. Createbeautifulrealestate WEBSITESTHATWORK INFOGRAPHICBYPLACESTER BuiltwithindexableIDXforbetteronline marketing,localsearch,andSEO.Forexperthelp, visitplacester.com Sources https://placester.com/real-estate-marketing-academy/life-as-an-agent-survey-results/ http://www.realtor.org/reports/member-profile http://www.spiceworks.com/news/press-release/2013/05-29/ http://www.ocregister.com/lansner/div-446030-strong-year.html http://exchange.aaa.com/wp-content/uploads/2013/04/Your-Driving-Costs-2013.pdf hhttp://www.slideshare.net/gordonborrell/borrell-2012-real-estate-outlook http://activerain.com/real-estate-marketing Attributions BillboarddesignedbyCaseyFlusterfromtheNounProject(http://thenounproject.com/term/billboard/19719/) BookdesignedbyDiegoNaivefromtheNounProject(http://thenounproject.com/term/book/15474/) BuildingdesignedbyMartinDelinfromtheNounProject(http://thenounproject.com/term/building/5747/) BuildingdesignedbyMartinDelinfromtheNounProject(http://thenounproject.com/term/building/5747/) CardesignedbyOlivierGuinfromtheNounProject(http://thenounproject.com/term/car/4699/) CCashdesignedbyTonyMichielsfromtheNounProject(http://thenounproject.com/term/cash/38038/) ChalkboarddesignedbyAsierBilbofromtheNounProject(http://thenounproject.com/term/chalkboard/26819/) CheckdesignedbyBrandonManningfromtheNounProject(http://thenounproject.com/term/check/7718/) ChurchdesignedbyAlexFullerfromtheNounProject(http://thenounproject.com/term/church/27686/) ConferencedesignedbyDesbenoitfromtheNounProject(http://thenounproject.com/term/conference/16379/) FirstAiddesignedbyAnsteyDesignfromtheNounProject(http://thenounproject.com/term/first-aid/20146/) GGaveldesignedbyDiegoNaivefromtheNounProject(http://thenounproject.com/term/gavel/23091/) MegaphonedesignedbyChristopherReyesfromtheNounProject(http://thenounproject.com/term/megaphone/11770/) MegaphonedesignedbyMisterPixelfromtheNounProject(http://thenounproject.com/term/megaphone/35635/) OutletdesignedbyKorokorofromtheNounProject(http://thenounproject.com/term/outlet/18289/) PropaneTankdesignedbyAmbarBhusarifromtheNounProject(http://thenounproject.com/term/propane-tank/8486/) TraindesignedbyJamisonWieserfromtheNounProject(http://thenounproject.com/term/train/1707/) WWomandesignedbyLemonLiufromtheNounProject(http://thenounproject.com/term/woman/8215/) GlobedesignedbyJuanGarcesfromtheNounProject(http://thenounproject.com/term/globe/1305/) CursordesignedbyRenatoSilvafromtheNounProject(http://thenounproject.com/term/cursor/19119/) NewspaperdesignedbyJohnCasertafromtheNounProject(http://thenounproject.com/term/newspaper/1233/) DeskFees $25-$750 /month IneInexchangeforkeepingallormostof yoursalescommission,somebrokers chargeaflatfeetousetheirdeskspace andbranding.Somebrokersmayalso chargetransactionfeesonsomeorall ofanagent’sdeals. CommissionSplits 30-85% /transaction WhileWhile50/50dealsarecommon, commissionsplitsvarywidely dependingonfactorslikeexperience andperformance. Office Supplies $20 /month PPaper,ink,andbusiness cardsarejustafewof theofficesuppliesmany agentsmustfurnish. Utilities $75-150 /month Software $20-250 /month Broadbandinternetand smartphoneservicesare essentialforagents--and notoriouslyexpensive. Fromcontact management,tomarket analysistools,tocloud storage,softwarecosts canpileupforagents. Mostrealestateagentsalignthemselveswithabrokeror firm,andmustpayfortheprivilege.Whilebrokershavea varietyofwaystodeterminethiscost,twocompensation modelsdominatetheconversation. BROKER COSTS Brokerscoversomeofficeexpenses,butagentsareoftenon theirownfortherest..Sincemanyagentsworkoutsidethe office,personalcomputers,mobilephones,andhome internetservicesmayalsobeconsideredbusinessexpenses. increaseinITbudgetforsmall andmidsizebusinessesworldwide, January-June201319% OPERATION COSTS Licenses& Permits $100-500 /year Initialsaleslicenseand renewalfeesvarywidely fromstatetostate. Realtor Association Dues +$120 /year WhileNARmembershipWhileNARmembership startsat$120,stateand localrealestateboards addtothiscost. MLS Fees $25-$100 /month AccesstorealestateAccesstorealestate datacancomeatahigh price,andmayinclude astartupfee. Likeanyprofession,realestateishighlyregulated.Thereare licensestoearnandrenew,organizationstojoin,andavariety ofotherofficialhoopsagentsmustjumpthrough. OFFICIAL& PROFESSIONAL COSTS Still,onenumbercan’ttellthefullstory.That’s whywe’vebrokendownalltheexpensesagents face.Fromadstoautoinsurance,conferencesto commissionsplits,herearethetruecostsofdoing businessasarealestateagent. Whenpeopletalkabouttherealestateprofession,theytendtofocusonhowmuch moneyagentsandbrokerscanmake.Buthaveyoueverconsideredhowmuchitcosts? TALKISCHEAPREALESTATE, NOTSOMUCH APLACESTERINFOGRAPHIC RealEstateAgent THECOSTOFBEING A Realtors’total businessexpenses areincreasingrapidly. TotalCosts 4800 5000 5200 4600 4200 4400 4000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2011 $4,520 2012 $4,900 $ $ $ $ $ $ $ $

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If you're like most people, deciding on a new career has lots of hidden cost and opportunities, but finding a break down of what is really involved in becoming a successful agent can be a challenge. This infographic is part of a series we are doing on being a real estate agent, what other agents are spending on advertising and marketing, what you can expect to spend yearly and how you might budget. Good luck. Let us know what you think. http://placester.com/academy/

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