I am interested in getting my MN Real Estate license, but then what?
Posted on February 14th, 2010 by admin
I have always had my eye on Real Estate, and now I have the opportunity to take classes and get my license. The problem is that I cannot find any information on the steps to take afterwards. Do I have to join a Brokerage place like Edina Realty or can I just start selling my friends and family’s property? Are there public housing listings, or is everyone a client, etc…. I would like to know where to find this info, or get a general layout of what the steps are after the classes.
When you are just starting out, you are going to want to work for a brokerage rather than trying to be a sole proprietor. RE is one of those rare occupations where you have to pay to do it, especially at first. So, everyone you talk to is probably going to try to get you on board, it is a very low risk for the brokerage because they only have to pay you if you produce.
What you are going to be offered will vary greatly, there may even be different compensation packages within the office. There may be monthly fees (aka desk fee). There may be all sorts of other things you have to pay too, advertising, website fees, transaction fees, franchise fees, E&O, postage, letterhead, signs, copy fees, etc, it can add up quickly.
Also, you are going to want to inquire about mentoring/training. Some offices will give you a desk and a phone and expect you to figure it out. Others will have nice classes and/or mentoring to get you started. And everything in between.
Another thing you are going to want to check out is the climate of the office. In some offices, the top producers are high maintenance and they basically run the office rather than the owner/broker. Some offices are very laid back, you’ll see a dog trotting through, agents toting their kids, people wear jeans. Then the other end of the spectrum would be the power office, everyone is in suits, they would trip their grandmother to get to a sale before you, highly charged, very competitive. And it doesn’t matter whose name is on the door, if it isn’t a right fit for you, you will be miserable.
People will tell you that it really doesn’t matter where you start because you can change offices at any time, and this is true. But it costs money and clients every time you change.
So, there is a lot to consider. Good luck.
February 14th, 2010 at 7:33 pm
After you pass your state’s test and get your license, you must work for a real estate office under a broker.
You cannot sell real estate on your own until you have a broker’s license too.
You can start looking at potential brokers anytime. Go to real estate offices near your home to start and ask questions about working there.
You may be charged a monthly fee for working at some offices and you will definitely have to give part of your commission on each deal, to your broker.
These figures will differ with each offer, so "shop around".
For instance, my office does not charge a monthly fee and I am not required to work X amount of hours in office. I do most of my work from home.
Also, my broker only charges me 25% of each commission up to $7500. per year. This works for me. After I reach $7500. 100% of the commission is mine. Each year starts a new period.
Some offices in my area charge up to $300. per month to work in the office and 50% of each commission up to $15,000.
Good luck
References :
RE Agent-MI
February 14th, 2010 at 7:38 pm
When you are just starting out, you are going to want to work for a brokerage rather than trying to be a sole proprietor. RE is one of those rare occupations where you have to pay to do it, especially at first. So, everyone you talk to is probably going to try to get you on board, it is a very low risk for the brokerage because they only have to pay you if you produce.
What you are going to be offered will vary greatly, there may even be different compensation packages within the office. There may be monthly fees (aka desk fee). There may be all sorts of other things you have to pay too, advertising, website fees, transaction fees, franchise fees, E&O, postage, letterhead, signs, copy fees, etc, it can add up quickly.
Also, you are going to want to inquire about mentoring/training. Some offices will give you a desk and a phone and expect you to figure it out. Others will have nice classes and/or mentoring to get you started. And everything in between.
Another thing you are going to want to check out is the climate of the office. In some offices, the top producers are high maintenance and they basically run the office rather than the owner/broker. Some offices are very laid back, you’ll see a dog trotting through, agents toting their kids, people wear jeans. Then the other end of the spectrum would be the power office, everyone is in suits, they would trip their grandmother to get to a sale before you, highly charged, very competitive. And it doesn’t matter whose name is on the door, if it isn’t a right fit for you, you will be miserable.
People will tell you that it really doesn’t matter where you start because you can change offices at any time, and this is true. But it costs money and clients every time you change.
So, there is a lot to consider. Good luck.
References :
Oregon Realtor