There are over 16,000 realtors in Vancouver alone and only 10% of them make a decent and very comfortable living.
I have been in real estate during my first year in post secondary (06) and it has been tough to say the least, but compared to others it hasn't been that bad ONLY because I had help from my dad. At first I worked in presales (Sales Centre rep) which wasn't bad at all (my fave actually) and then made the switch to REsale in 2010 as my dad is slowly retiring. So many realtors get into the business thinking it's going to be easy and they're going to make millions. WRONG.
They say over 50% of realtors in their first year drop out of the business or have to find a 2nd or 3rd job to make ends meet. THis job is costly with the amount of money you have to drop for the following:
-Hanging your license with a brokerage
-Paying your licensing fee with the board
-Advertising to break your name onto the scene which could take a long time
-Time and effort to land your first sale which could take months
IF you're a new realtor, feel lucky if you even make 2-3 sales in a year.
Now back to my dad for second. THe reason I said he was a major help to me and my business is because he has been in the business himself for a long time. For the first 18 years of my life..I barely saw my dad because he was always out there working his ass off. My childhood wasn't rough but I know we struggled at times with our finances at home. His work ethic and patience was what made him successful in the long run and now my parents (here comes the pros) take vacations every 3 months at a month at a time, is putting my brother through med school, is able to support my niece with private school and all her needs because her parents are a mess, and just PROVIDE for their children. But granted, this took 18 years to build. 18 HARD EFFING YEARS TO GET TO WHERE HE IS TODAY. (I have so much respect and love for my dad and what he did for us
)
Now he's in the top 1% of realtors in Vancouver and he was a sales rep as well for Concord Pacific and basically sold the whole YT/False Creek area since 2000. Because he is well known and has housed so many clients I get to meet these past clients and start a relationship with them so when my dad bows out completely..I can take over while I am still learning from him to gain my own clients as well.
It is hard. SO FUCKING HARD. If you're not up for the challenge and patience..this job will not be for you. I'm not trying to discourage you or anything but it pains me to see people get into this business with such ill-realistic ideas, drop a ton of money, and have it not work out.
However, if Real Estate is something you REALLY do have an interest for..I'd suggest perhaps teaming up with a top producer in the office. Whether it's to be their assistant or someone who helps them hold open houses on the weekends..it can help you a lot. Learning from someone who has been in the business and done well can be a huge stepping stone in your RE career.
And yes to the 1000 questions book. If you do those questions front to back a few times..you'll pass the test with flying colours. Trust me. This is what I did.
And now to the commissions. Typically it is:
Listing COmmission (Sellers Agent): 7% on the first $100,000 and 2.5% on the balance
Selling Commission (Buyers Agent): 3.2% on the first $100,000 and 1.15% on the balance
(The selling commission can differ depending on the agent but the listing commission is standard at most agencies)
Now, if you are able to sell the property as both the sellers and buyers agent, you take the full 7% on the first $100,000 and 2.5% on the balance. But majority of the time you will probably have to split your commissions with an outside agent.
THen don't forget that your commission split will also have to be split with the OFFICE. Usually it's 60/40 but if you're a high grossing realtor you can probably get 95/5 or 90/10 split with your office. It just depends.
OH and 1 more thing, TAXES!! Because we are our own "bosses" you have to pay your GST every few months as the office won't subtract it from your pay. So you can't dip into those funds as they are technically not yours.
All in all, I wish you the best of luck and really take the time to think it over. If you have a job right now I'd suggest keeping it as a steady paychq will help LOADS if you do decide to take Real Estate to the next level.
If you have any questions let me know!