Rhonda  Eaves

Rhonda Eaves

REALTOR®

Realty One Group Inspiration

Mobile:
407-906-9135
Office:
321-233-2300
Email Me
Rhonda  Eaves

Rhonda Eaves

REALTOR®

Realty One Group Inspiration

Mobile:
407-906-9135
Office:
321-233-2300
Email Me

Is it Worth Getting a Real Estate License in Florida?

How Much is it to Become a Florida Real Estate Agent?

Are you considering a real estate sales career and want to know is it worth the time and effort?  I will address some of the benefits as well as obstacles of becoming a real estate agent in Florida.  From there you can decide if a real estate agent job is the right career for you.

 

A real estate career is not easy.  You have got to have a lot of determination, persistence and tenacity along with professional skills.  A lot of people get into the business because they perceive it to be easy, but it is far from easy (especially your first year).  Most real estate agents quit within their first two years, because they got into the businesses with unrealistic expectations.  My hope is that by reading this article you will know what to expect thereby reducing your chances of quitting. 

 

How Much do Real Estate Agents Make?

Let’s just start off with a realistic expectation of Realtor© salaries.  A lot of people watch the late night infomercials, HGTV, and reality TV shows and have a false perception that most agents are making millions of dollars.  That is far from the truth! 

 

You see the agents on reality TV selling million dollar homes, but they don’t show the final profit.  For example, if you were to sell a home for $1,000,000 you can expect to take home maybe $21,000.  See calculations below:

 

Selling Price $1,000,000

Commission 6% - $60,000

Listing and Buyers Agent Split the Commission - $30,000

Broker Takes Out Their Portion - $7,000

Your Take Home Pay - $23,000

 

Depending on the average sales price of homes in your neighborhood you will need to sell millions of dollars in order to make a good income.

 

According to National Association of Realtors©, the average salary for a Realtor© is about $40K.  If you have 16 years or more of experience the average salary is about $74K.  There are Realtors© that make more than that, but they are above average top producers.  What will you do to ensure that you are not the average real estate agent?    

 

Some of the reasons that people choose a career in real estate includes; flexible hours, the opportunity to work with people, and having the entrepreneurial bug.  Although, your hours are flexible you are going to have to put in a lot of hours and hustle if you expect to make money as a Florida real estate agent. Now that you know the average income, if you are still interested in being a real estate agent this is what you will need to do.

 

 

Steps to Getting a Florida Real Estate License

Step 1 – Fill out the Real Estate Licensed Sales Associate application at the Florida Department of Business & Professional Regulation.  The Florida DBPR will do a background check.

Step 2 – Take a 63 hour Florida real estate salesperson class.  

Step 3 – Take the Florida real estate license exam through Person Vue

Step 4 – Find a real estate company to join.  

Step 5 – Pay dues to the National Association of Realtors©, your local Realtor© association and MLS fees.

 

In order to be a Florida real estate agent first you have to take a course then pass the state exam.  I have heard from multiple people that they did not pass the exam on the first try.  I was determined to pass the first time, because I did not want to go through the time and expense of taking the exam twice.  I took an in person class then I also took the exam prep master online with Real Estate Express.

 

 

Pre-Licensing Real Estate Agent Expenses

Here is a list of some of the items that you will need to pay in order to become a Florida licensed real estate agent.

Florida Real Estate Saleperson Course* - up to $300   

Exam Prep - $69  

Florida DBPR Application - $83.75

Florida State Exam with Pearson Vue - $89

Total Exam Costs - $541.75

*You must take a 63 hour pre-licensing exam in order to take the Florida state real estate exam. 

 

If you are one of the lucky ones to get a client immediately upon getting your real estate license, it could still be months before you make your first pay check.  Let’s say you were able to list a house the day that you pass your exam.  The house could be on the market for 60+ days before you find a buyer.  Then the buyer needs to be approved and close on the home which is another 30+ days. 

 

As a real estate agent your income will be sporadic and inconsistent.  This is important to know when planning your expenses especially the first few years while you are building up clientele.

 

MLS Fees and Realtor• Dues - $1,700

Supra Key - $200

Technology Fee - $700

Marketing Expenses - $1,200++

Office Supplies & Misc - $500

Total First Year Expenses - $4,300++

 

As you can see, in addition to the $541 cost for the course and exam I spent another $4,300 to maintain my real estate business.  Hopefully, you will make a commission to offset the cost plus make a profit.  In the event that you don’t make a commission you need to be prepared financially.

 

You Will Work a Lot of Hours!

As a real estate agent you will need to hustle and work a lot of hours.  If you are not meeting with clients to show houses or going on listing presentations then you are working on marketing and obtaining leads.  Real estate is not a passive business.  Yes, you will have some flexibility and that is one of the benefits of this career.  However, overall if you want to put food on the table and cover your expenses you will need to work evenings and weekends. 

 

Also, keep in mind that the real estate class focuses on rules and regulations.  It does not teach you how to run a successful real estate business.   It is important that you get with a real estate broker that can help you during your first year with the following:

  • How to get leads
  • How to negotiate
  • How to stay motivated when there is not any money coming in
  • How to keep the deal from falling through

The above bullet points are the backbone of a Realtor’s© business and can make or break your career, which leads to my next point of finding the right fit real estate team.

 

Finding a Real Estate Broker

Once you made the decision to become a real estate agent you will then need to go about the difficult task of finding a broker to hang your license.  You will need to choose a real estate broker that can meet your needs as far as training, development, technology, commission splits, mentoring, etc.  I am with Realty One Group Inspiration located in Orlando, Florida in Metro West.  

 

Being a Real Estate Agent can be a Roller Coaster

The one thing that I have found surprising since being in this business is that no two days are alike.  There are many highs and a lot of lows.  In order to be successful in this business you need to be prepared for and be able to handle the ups and downs.  If you enter this business with realistic expectations then you should be able to whether the storms and have a rewarding long-term real estate career.

 

 

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Comments

Working in real estate sure

Working in real estate sure is a a roller coaster, so many agents are here to confirm that. However these people get attracted to work in this industry because it can be challenging and rewarding. Now that we're crossing stable economic times the real estate has a higher level of predictability.

Real Estate Career

A person might consider a real estate career if he/she loves working with people and have the special skills in sales. Knowledgeable professionals are needed mostly by home buyers and sellers in guiding them through their transaction in real estate.

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