How profitable can being a real estate agent be?

[slackerinabox]

I'm probably heading back to school and thought about being a real estate agent part time- how profitable can it be? I'm very good at selling things (worked for a marketing company) and wouldn't need to make a career out of this, just enough to pay for school,rent, and..ok.. alcohol..

I live in NYC if that helps.

 

[radioouman]

Very, if you get hte right properties.

But the real question is how much have real estate agents driven up the price of real estate?

 

[maddogchen]

not sure..right now in my area there are way too many real estate agents. way more than there are houses available to sell. so some haven't had a house to sell for a year now.

 

[Queasy]

Depends on the area, the amount of competition, and how much work you put into drumming up new clients.

 

[IceBergSLiM]

if you are a well connected go getter you can make oodles of money. dont expect much your first year.

 

[dullard]

Now isn't the time to get into real estate. There has been a boom in agents and at the same time fewer and fewer houses are being sold. There will be a lot of real estate agent pain in the next few years.

 

[IceBergSLiM]

Originally posted by: dullard
Now isn't the time to get into real estate. There has been a boom in agents and at the same time fewer and fewer houses are being sold. There will be a lot of real estate agent pain in the next few years.

Your don't really know what your talking about. People will always be buying and selling homes. THere may be certain markets that are in a downswing but it isn't ever across the board like you make it sound.

 

[Mellman]

agents in my area...lets see, several 1 million dollar homes, 3% commission on 1 mil? you do the math

 

[Queasy]

Originally posted by: Mellman
agents in my area...lets see, several 1 million dollar homes, 3% commission on 1 mil? you do the math

minus the broker's commission, minus other brokerage fees, minus taxes, etc etc.

It'll still be a good chunk of change but the real estate agent never sees the full 3% commission unless they are also their own broker.

 

[trmiv]

Everyone and their momma is doing real estate now. I swear if I had a dollar for every time I've ran into someone from high school and asked what they are doing now and the answer was "real estate" I'd be a rich man.

 

[LegendKiller]

Originally posted by: IcebergSlim

Originally posted by: dullard
Now isn't the time to get into real estate. There has been a boom in agents and at the same time fewer and fewer houses are being sold. There will be a lot of real estate agent pain in the next few years.

Your don't really know what your talking about. People will always be buying and selling homes. THere may be certain markets that are in a downswing but it isn't ever across the board like you make it sound.

First off, it's "you're"(sorry, pet peeve). Second, this boom is like no other in history and the bust will be the same way. In P&N there is a housing thread in which Dullard and I are major contributors. I personally work on the financing side of origination (securitization of receivables) for a non-mortgage company, but I do know the industry, and I can certainly say that many mortgage companies are worried.

The next 18 months will see a lot of downsizing in this area. Everybody and their mom is doing RE and there will be a lot of culling, no matter where you live. Furthermore, even if you work in a better area, which is still going to do OK, it's going to attract a concentration of the best talent, making those areas all that much more difficult to do well in (money attracts, simple economics).

 

[dullard]

Originally posted by: IcebergSlim
Your don't really know what your talking about. People will always be buying and selling homes. THere may be certain markets that are in a downswing but it isn't ever across the board like you make it sound.

That is the second thread today that you make wild claims disputing my post without any proof or reasoning to your disputes.

Please research my thread and report back here with your disputes to the facts presented there. You have until tomorrow at 5 pm your time to finish this assignment.

Edit: thanks LegendKiller for jumping in.

 

[alien42]

Originally posted by: LegendKiller

Originally posted by: IcebergSlim

Originally posted by: dullard
Now isn't the time to get into real estate. There has been a boom in agents and at the same time fewer and fewer houses are being sold. There will be a lot of real estate agent pain in the next few years.

Your don't really know what your talking about. People will always be buying and selling homes. THere may be certain markets that are in a downswing but it isn't ever across the board like you make it sound.

First off, it's "you're"(sorry, pet peeve). Second, this boom is like no other in history and the bust will be the same way. In P&N there is a housing thread in which Dullard and I are major contributors. I personally work on the financing side of origination (securitization of receivables) for a non-mortgage company, but I do know the industry, and I can certainly say that many mortgage companies are worried.

The next 18 months will see a lot of downsizing in this area. Everybody and their mom is doing RE and there will be a lot of culling, no matter where you live. Furthermore, even if you work in a better area, which is still going to do OK, it's going to attract a concentration of the best talent, making those areas all that much more difficult to do well in (money attracts, simple economics).

i hate grammar nazis, but when they make a mistake its ownage material.
its "you" and not "you're don't really know"

 

[quikah]

This is CA focused, but worth reading. Your area may be different.

http://www.mercurynews.com/mld/mercurynews/business/15852383.htm

 

[dullard]

Originally posted by: alien42
i hate grammar nazis, but when they make a mistake its ownage material.
its "you" and not "you're don't really know"

Alien42, you are correcting a different mistake than what LegendKiller corrected.

Originally posted by: IcebergSlim
Your don't really know what your talking about.

The grammar error that Alien42 corrected is in italics. The grammar error that LegendKiller corrected is in bold. Note: my post here is probably full of both grammar and spelling errors.

 

[Tremulant]

My aunt is trying to get out of RE after trying for 3 or 4 years. She made good money, but she grew tired of the business because she didn't have the contacts that more established realtors do.

My dad has been doing commercial realty (specifically gas stations) for the past 5 or 6 years. He went through a period of time where a lot of closings fell through and he wasn't making any money, but over the past 2 years he's had numerous good closings and is no longer in the red.

 

[LegendKiller]

Originally posted by: alien42

Originally posted by: LegendKiller

Originally posted by: IcebergSlim

Originally posted by: dullard
Now isn't the time to get into real estate. There has been a boom in agents and at the same time fewer and fewer houses are being sold. There will be a lot of real estate agent pain in the next few years.

Your don't really know what your talking about. People will always be buying and selling homes. THere may be certain markets that are in a downswing but it isn't ever across the board like you make it sound.

First off, it's "you're"(sorry, pet peeve). Second, this boom is like no other in history and the bust will be the same way. In P&N there is a housing thread in which Dullard and I are major contributors. I personally work on the financing side of origination (securitization of receivables) for a non-mortgage company, but I do know the industry, and I can certainly say that many mortgage companies are worried.

The next 18 months will see a lot of downsizing in this area. Everybody and their mom is doing RE and there will be a lot of culling, no matter where you live. Furthermore, even if you work in a better area, which is still going to do OK, it's going to attract a concentration of the best talent, making those areas all that much more difficult to do well in (money attracts, simple economics).

i hate grammar nazis, but when they make a mistake its ownage material.
its "you" and not "you're don't really know"

Heh, owned yourself. Are you going to add anything to the thread or just troll?

 

[IceBergSLiM]

Originally posted by: dullard

Originally posted by: IcebergSlim
Your don't really know what your talking about. People will always be buying and selling homes. THere may be certain markets that are in a downswing but it isn't ever across the board like you make it sound.

That is the second thread today that you make wild claims disputing my post without any proof or reasoning to your disputes.

Please research my thread and report back here with your disputes to the facts presented there. You have until tomorrow at 5 pm your time to finish this assignment.

Edit: thanks LegendKiller for jumping in.

ummm where does everyone live if not in houses? if people are buying houses or selling houses at 75% less than what they are selling/buying today the agents will be making smaller commissions not less sales. Some of the fringe people in real estate may jump ship but anybody who is a decent agent is still going to have plenty of work they may be just getting less per sale than in the past. Again its all relative to the market your in. 4 million dollar homes now going for 1 million or 1 million homes going for 250 k the agents are still making out pretty well.

 

[vi edit]

Originally posted by: IcebergSlim

Originally posted by: dullard
Now isn't the time to get into real estate. There has been a boom in agents and at the same time fewer and fewer houses are being sold. There will be a lot of real estate agent pain in the next few years.

Your don't really know what your talking about. People will always be buying and selling homes. THere may be certain markets that are in a downswing but it isn't ever across the board like you make it sound.

All it takes is a few hour course and a couple hundred bucks to become an RE agent. The market is saturated with people holding RE licenses that entered over the last 5-7 years. Take a look at the thread in P&N. Inventories are up, sales are down. Houses are sitting. Across the nation. Not just in pockets.

I wouldn't quit my day job to get into the industry. You don't get paid until the house is sold. It's taking a whole lot longer to sell a place right now than it has in the last 10 years.

Also, RE agents with a fresh printed license see a fraction of the comission. The broker or parent office they work out of take a majority of it.

 

[InlineFive]

It's a buyers market right now. In my area agents aren't doing so well.

 

[RagingBITCH]

Originally posted by: IcebergSlim

Originally posted by: dullard

Originally posted by: IcebergSlim
Your don't really know what your talking about. People will always be buying and selling homes. THere may be certain markets that are in a downswing but it isn't ever across the board like you make it sound.

That is the second thread today that you make wild claims disputing my post without any proof or reasoning to your disputes.

Please research my thread and report back here with your disputes to the facts presented there. You have until tomorrow at 5 pm your time to finish this assignment.

Edit: thanks LegendKiller for jumping in.

ummm where does everyone live if not in houses? if people are buying houses or selling houses at 75% less than what they are selling/buying today the agents will be making smaller commissions not less sales. Some of the fringe people in real estate may jump ship but anybody who is a decent agent is still going to have plenty of work they may be just getting less per sale than in the past. Again its all relative to the market your in. 4 million dollar homes now going for 1 million or 1 million homes going for 250 k the agents are still making out pretty well.

Your assumption that the number of houses being sold is staying steady or is increasing is incorrect, which is the basis of your entire argument. It has nothing to do with the % of price of the houses. That was dullard's point to begin with. It has nothing to do with RE agent's commissions.

 

[dullard]

Originally posted by: IcebergSlim
if people are buying houses or selling houses at 75% less than what they are selling/buying today the agents will be making smaller commissions not less sales.

I refer you to my graph. There are two effects that are relevant to this thread in this post.

(1) Look at the bottom/middle graph. It is hard to see, but prices are just starting to go down nationwide. Prices have been going down a bit more and a bit longer in some specific locations. And prices may go up a bit in some specific locations. But overall, prices are now going down. And since Oct 2005 was the peak of 2005 prices, unless we get a miracle price increase now, we will be much lower in Oct 2006 than Oct 2005.

(2) Look at the top three graphs. Both the number of sales of existing homes and the number of sales of new homes has been dropping for more than a year. The total number of homes sold has dropped about 15% in the time period of the top/right graph.

So real estate people have BOTH fewer homes to sell AND lower commission per home. The net effect is that either real estate agents will take a substantial cut to income or real estate agents need to find other lines of work.

Where will people live? Where they currently live.

 

[IceBergSLiM]

Originally posted by: RagingBITCH

Originally posted by: IcebergSlim

Originally posted by: dullard

Originally posted by: IcebergSlim
Your don't really know what your talking about. People will always be buying and selling homes. THere may be certain markets that are in a downswing but it isn't ever across the board like you make it sound.

That is the second thread today that you make wild claims disputing my post without any proof or reasoning to your disputes.

Please research my thread and report back here with your disputes to the facts presented there. You have until tomorrow at 5 pm your time to finish this assignment.

Edit: thanks LegendKiller for jumping in.

ummm where does everyone live if not in houses? if people are buying houses or selling houses at 75% less than what they are selling/buying today the agents will be making smaller commissions not less sales. Some of the fringe people in real estate may jump ship but anybody who is a decent agent is still going to have plenty of work they may be just getting less per sale than in the past. Again its all relative to the market your in. 4 million dollar homes now going for 1 million or 1 million homes going for 250 k the agents are still making out pretty well.

Your assumption that the number of houses being sold is staying steady or is increasing is incorrect, which is the basis of your entire argument. It has nothing to do with the % of price of the houses. That was dullard's point to begin with. It has nothing to do with RE agent's commissions.

Ok. Well if people stop living in houses then yes I am wrong.

 

[RagingBITCH]

Originally posted by: IcebergSlim

Originally posted by: RagingBITCH

Originally posted by: IcebergSlim

Originally posted by: dullard

Originally posted by: IcebergSlim
Your don't really know what your talking about. People will always be buying and selling homes. THere may be certain markets that are in a downswing but it isn't ever across the board like you make it sound.

That is the second thread today that you make wild claims disputing my post without any proof or reasoning to your disputes.

Please research my thread and report back here with your disputes to the facts presented there. You have until tomorrow at 5 pm your time to finish this assignment.

Edit: thanks LegendKiller for jumping in.

ummm where does everyone live if not in houses? if people are buying houses or selling houses at 75% less than what they are selling/buying today the agents will be making smaller commissions not less sales. Some of the fringe people in real estate may jump ship but anybody who is a decent agent is still going to have plenty of work they may be just getting less per sale than in the past. Again its all relative to the market your in. 4 million dollar homes now going for 1 million or 1 million homes going for 250 k the agents are still making out pretty well.

Your assumption that the number of houses being sold is staying steady or is increasing is incorrect, which is the basis of your entire argument. It has nothing to do with the % of price of the houses. That was dullard's point to begin with. It has nothing to do with RE agent's commissions.

Ok. Well if people stop living in houses then yes I am wrong.

Have you never heard of apartments? I guess houses are the ONLY places in the world to live. Excuse me.

 

[Homerboy]

Your assumption that the number of houses being sold is staying steady or is increasing is incorrect, which is the basis of your entire argument. It has nothing to do with the % of price of the houses. That was dullard's point to begin with. It has nothing to do with RE agent's commissions.

(speaking entirely for my neck of the woods) that # of houses being sold/bought is CERTAINLY on the dramatic decline simply due to the fact that people can't/won't sell as quickly as they did 2yrs ago as they don't have as much equity in their house (and therefor likely doesn't benefit them to move or at least makes it less attractive).

The entire RE business is in the tank right now and will likely get worse before it gets better. There has been an onslaught of new agents in the recent years. Combine that with lower average prices for houses and again add in the lower number of houses being sold, and you have a once profitable market stretched thin.

Not to mention I know more and more people that are doing FiSBO now as the mystique and difficulties of selling a house have declined with the onset of the internet.