Earning $5,000 per month selling real estate as a real estate agent is very attainable. As with all methods of earning money you actually need to work at it in order to make money. Real Estate is a unique career. You may work your first 3-6 months with absolutely no sales which means you may earn no money your first 6 months in the real estate business. You not only may not earn any money but you could actually lose money. Working as a real estate agent will cost you some money each month and as a new Realtor you may not be able to make a sale for a few months causing you to actually lose money each month. If you are willing to work hard at this business and invest a lot of time in networking and learning then you could easily earn much more than $5,000 per month.
Get Real Estate License
In most States the method to obtaining you real estate license is similar. You have to take a couple of real estate classes, pass a simple background check, and then you will be a licensed agent. Once you have obtained your Real Estate license that allows you to buy and sell real estate on behalf of your customers it is time to get a job with a Real Estate company.
Find a Real Estate Agent Company
There are more than likely numerous Real Estate companies in your area. When you take your licensing classes you will learn more about what to look for when selecting a company to work for. Some force you to pay a monthly fee, but you may be rewarded with a higher cut of the commission from all homes you help sell or to help buyer buy.
The commission you earn is variable depending on many factors. In general you can assume a 6 percent commission for helping a buyer buy a home. Out of the 6 percent 3 percent will go to the listing agents company and 3 percent to your company. Of the 3 percent commission generally it will be split 50/50 between you and your broker. This can vary a lot but is a great generalization of the commission terms so you can understand how much you can potentially earn as a Real Estate agent.
You can assume that you will pocket $1,500 for every $100,000 sold. If the average home price in your area is $200,000 then you can expect to earn around $3,000 from every home you help sell. If you sell a luxury home that is listed at a Million dollars then you can expect to earn around $15,000.
Your focus should not be on attempting to sell only luxury homes. Your focus as a new agent is to develop a network and to generate as many quality leads as you can by word of mouth. You want to help people find the perfect home within their budget. It does not matter if they want a $75,000 manufactured home on a rented lot for sale or if they are looking to buy a huge mansion. You need to dedicate the perfect experience for each of your customers regardless of what their budget is for a home. These happy customers will happily refer you to their friends and family if you provide an honest service and truly work to help them out and save them money.
When you begin you may work a few months simply trying to generate leads to people who want to buy or sell their home. Once you begin to generate a network of consistent leads you will be able to buy and sell homes on a regular basis.
If you buy and sell $350,000 worth of real estate a month then you can expect to earn around $5,250 each month. Initially this will be hard to achieve until you have been in the business awhile but if you focus on truly trying to build you business and not sitting around the office talking and gossiping with your fellow agents then you achieve this. It is very probable that you will achieve this in your first year if you work at always developing new contacts.
For many top agents $5,000 per month is peanuts. You can earn much more than $5,000 per month if you work hard at it.
List to Earn More
If you are helping a client to sell their home then all the other active agents in town will be able to show the home to potential clients. It is easier to earn money with a listing to sell because more people are there to help the home to sell. Don’t concentrate on just finding listings to sell, but do try to market to obtain more leads for listings as opposed to helping buyers find the right home.
Working as a Realtor or Real Estate agent has a huge potential of earning you massive amounts of money but it is not like a regular 9-5 job. You may work tons of hours and be forced to work weekends until your business is developed and you have a team working under you to help out with the large am0ounts of transactions you have.
Your income potential is dependent solely upon the efforts in which you put into it. If you can work your butt off and develop quality leads of people who are looking to buy a home or sell their current home then you can earn big money selling homes and property. Treat your customers ethically and very honest with them and these customers will use your services again in the future when they want to upgrade from their home. More importantly you customers will refer you to their friends and family who need your services and this is when your real estate business will boom! You can make $5,000 per month selling and buying property. You can earn much more than $5,000 per month but it is very feasible to earn 5,000 dollars per month as long as you are willing to work hard for the leads.