This is a question I get all the time: How much does it cost to be a Realtor? I will break this down for you based on my costs for last year.
The biggest cost is your desk fee or split percentage with the company you work for based on their business model. Desk fees can range from $800 to $2,000 a month depending where you live and work because some cities will have higher rents for their office space. When you pay desk fees you will get most of your commission when you make a sale–95% to 100% of your commissions. If you do a split percentage, especially if you’re new, it will be in the 25% to 50% range. This means when you receive a commission for a sale made the company you work for will take a percentage of your commission.
For me I have a nice office in Louisville, Colorado which is in between Boulder and Denver. Ten minutes from Boulder and thirty minutes from Denver. My desk fee is around $1,200 a month.
Realtor Association Fee: $675.00 for the year
I pay an annual fee to RE/MAX Corporate of $390.00
My annual MLS fee is $429.00
Error and Omissions Insurance: $500 for the year
Docu Sign program (electronic signature): $200 for the year
Continuing Education Classes: $100 a year minimum
Direct Mail Marketing: Minimum of $1,000 a year
Other costs are your cell phone and auto expenses.
Website, Domain names and software: $500 to $1,000 a year.
When you’re new you will need to buy “For Sale” “Open House” signs and business cards.
Listing Costs such as photography (if you take your own pictures then you will need to have a good camera), virtual tours and staging if you’re doing higher end properties.
Office supplies: $500 a year.
Customer Marketing: Lunches, coffees, give-a-way gifts, etc.
Advertising costs: This depends on what type of programs you do.
Other costs are personal such as health insurance, dental, CPA, etc.
Take these numbers to heart when you’re starting out as a new Individual Realtor.
Good luck 🙂