An information article by Jim VanErmen ABR CRS

The  Cost  of doing  Business  in  your new  profession  of  Real Estate

In August 2005 I requested 3 former students who had entered the real estate profession to provide me an accounting of their "start up" costs which may come as a surprise to new agents.  Below is a table of their input along with current annual fees most agents continue to pay while they are in an active status.  REALTOR annual dues*  includes membership into the Montgomery Area Association of REALTORS, the Alabama Association of REALTORS and the National Association of REALTORS (NAR).  Being a REALTOR is not a requirement of the State but if the company where your license is placed is a REALTOR company then all the agents in that company will be required to belong.  For more information on NAR
Three Newly licensed REALTORs from
three different companies
(cost in dollars)

JP
TM
DA
Annual
Fees

Pre-License Course
345
reimbursed
345

State Exam (each time)
67
67
67
Temporary State License to include
Recovery Fund, Background check
and Research & Education Fund

255

255

255

Post License Course (within 6 months
of having a temporary license) followed by
Active license below **

150

150

150


Errors and Omission Insurance (prorated) annual fee
50
provided
until annual fee
???
~350
Montgomery Area Association of
REALTORS Application Fee
350
350
350

*REALTOR  Annual Dues (prorated)
177
177
177
~350
Supra Administration Fee (MLS lock box)
50
50
50

Supra (D-Key) annual fee (or)
195
0
195
199
Supra (E-Key) annual fee (either D or E)
0
109
0
336
Portrait Photo
50
company
none

Business Cards with photo
company
company
25

Name Badge




**Active License (per year)
85
85
85
87.50
Name Riders
for ten,  35
43
none

Cell Phone
???
???
???

Additional Car Insurance
(may be required by some companies)
???
???
???

MLS lock Box cost (for homes you list)
Lock boxes maintained by the agent or in
some cases provided by the company

 for one,  25

not yet
purchased

not yet
purchased

Financial Calculator
none
110
none

PDA - Palm One +
none
142
415

Notebook Computer
none
owned
825

Office Supplies as required
???
???
???

Advertising (initial ads and monthly ads)
???
???
???

Continuing Education (15 hours ever 2 years)
-
-
-
~150
Office furniture
0
249
0

Magnetic car signs and display signs
0
100
0


Additionally  the loss of income during "start up" time should be considered.  Other endeavors would provide an immediate income while being an independent contractor your income comes only from your home sales.

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