Counting the Costs: The Real Price of Becoming a Real Estate Agent

By The Colemere Realty Team

The Colemere Realty team has 58 years of combined experience in selling real estate and coaching agents. By using our hands-on mentoring system your business will grow while simultaneously allowing you the time for a balanced personal life.

Becoming a real estate agent can be an exciting career choice, but it comes with a set of hidden costs that many people don’t talk about upfront. Today, we’ll shed light on these often overlooked expenses so you can better prepare for your journey in the real estate world.

1. Technology expenses. After acquiring your real estate license, the first expense that may surprise you is the need for technology. You’ll require a computer, electronic signature software, and a Customer Relationship Management (CRM) system. Additionally, advertising costs on platforms like Castle or external websites are essential for reaching potential clients.

2. Lead generation costs. If you decide to purchase leads to boost your business, be ready to allocate a significant budget. Services like Zillow can charge you up to $4,000 a month for just four leads. Lead generation can become a substantial ongoing expense.

3. Coaching fees. In the competitive real estate market, many agents opt for coaching to improve their skills and performance. Hiring a coach can cost anywhere from $1,000 to $2,000 a month. It’s an investment in your professional growth, but it’s essential to consider this cost.

4. MLS dues. To access the Multiple Listing Service (MLS) and join the Board of Realtors, you’ll need to pay MLS dues. This typically costs around $1,000 upfront.

“Starting as a new real estate agent can be challenging, especially if you underestimate these hidden costs.”

5. Marketing and promotion. Your marketing efforts will include expenses for signs, open house materials, key boxes, business cards, flyers, and professional photos. Staging services can also enhance your listings but come at an additional cost.

6. Administrative support. As your business grows, you might consider hiring a virtual assistant or part-time assistant to help with online advertising, administrative tasks, and client communication.

7. Mailing expenses. To reach potential clients or announce new listings, you may incur mailing expenses, such as sending postcards or letters to neighborhoods.

8. Fuel costs. Don’t forget about ongoing expenses like fuel costs when you’re showing properties to potential buyers. Keeping your gas tank filled is a necessity.

The most common mistake new agents make is assuming that business will come to them without putting in the effort. In reality, success in real estate demands dedication and hard work, especially in today’s competitive market.

The good news is that if you’re committed to the industry and are willing to put in the effort, there are opportunities for support. We offer packages that cover many of these costs for new agents. So, if you’re ready to commit to selling at least 12 transactions a year, reach out to us by phone or email so that we can assist you on your journey.