What to Expect As A New Agent: Expenses

When first starting in real estate, it helps to know what costs you’ll be incurring so you don't get caught short. Here are some of the most common expenses, both required and optional, that you’ll face as a new real estate agent.

Required Expenses

Real Estate Licensing Expenses

To obtain a real estate license, you need to complete a pre-licensing course. In addition to the fee for the course, you may also have related expenses in books and materials.

Upon completion of the course, you will then have state licensing fees to pay including the fee for the state real estate licensing exam and the fee for a mandatory background check.

Brokerage Fees

When you work with a brokerage, the brokerage keeps a percentage of the commissions you earn from every sale. When calculating your earnings from real estate, you’ll always need to factor in the portion of your commission you essentially pay to your broker.

In addition, you’ll likely have other brokerage fees to pay for the benefits of working with a brokerage. These, too, can vary widely among brokerages, but they generally include the cost for errors and omissions insurance as well as potentially one or more of the following:

• Post-licensing course fee
• Start-up fee
• Monthly fee

Operational Costs

Running a real estate business costs money. There are a bevy of startup expenses and recurring expenses to factor into your budget, including:

• Board of Realtors fee
• MLS Access
• Business cards
• Lockbox key for showing homes
• Gasoline
• Coffee and lunches with clients

Optional Expenses

Many of these expenses you may not need, depending on the circumstances of the transaction. Others are up to your discretion, though the amount and ways in which you spend in these areas can play a large role in your success in the real estate business.

Listings

For each listing you manage, you may need:

• Real estate signs
• Lockboxes
• Photographer or videographer
• Flyer printing
• Snacks and drinks for agent caravans and open houses
• Paid advertising, such as in classified or on social media

Marketing Expenses

You may choose to run a website for your real estate business, in which case you’ll need to pay for a domain name and web hosting. How much you pay for the site itself depends on whether you buy a pre-built website or hire a professional web designer to build you a customized site.

You’ll also incur IDX fees for a website search in MLS, fees for Featured Agent status on third-party real estate sites like Zillow and Realtor, and fees for any other real estate marketing you do.

To make the most of the expenses you pay to be a real estate agent, join Exp Realty and work with the best real estate brokerage network, the Most Referred Experts.