About the Author
My husband, Mike and I began our real estate career as investors. In the early 1980’s, Mike bought his first piece of property, a 4-unit apartment building in Huntington Beach, California. With interest rates over 15%, he was able to purchase the property with no money down, and arranged creative financing with the owner.
Since then, Mike and I have continued to invest in real estate. We chose real estate management and sales as a career because we want to help others, both in acquiring their dream home and to build wealth by investimg.
We are the owners of Century 21 West Coast Brokers real estate office, Alpha Escrow Company, and Nationwide Bankers Mortgage. This provides a one-stop shopping convenience for our clients.
With over 20 years of experience active in the marketplace, we have seen the ups and downs of the real estate cycle. We are here to offer you professional advice and hints, whether you want to buy a home to enjoy or acquire an investment for income.
Jenny Said,
November 28, 2005 @ 3:11 pm
Hi Katy Lee - I have a question for you please. I have a relative who obtained her real estate license (not sure if the full license or just part of it) last year. Thus far, she’s been temping for a new house builder doing tasks such as opening/closing the homes, showing potential custs the model homes, manning the phones etc. She said she is interviewing for a position as a full-time agent (for the new house community) that will begin at 120k per year (and that the other agents make 500k-600k per year). Is this possible? The real estate market where I live is hot, but very few realtors are making money like this except for the top agents and even then, it’s taken them years to achieve this high level of earnings. Is it really possible for novice agents in California to earn such money in their first year on the job? I’m curious to know (maybe I need consider a career change!). Thanks.
Katy Lee Said,
November 28, 2005 @ 10:12 pm
Hi Jenny;
As an independent contractor working on commission basis, a real estate agent’s income is unlimited. The more houses you sell, the more money you make.
So realistically, how much does an average agent make? I think the figure from census shows about $30,000. With rising housing prices, you would expect more than that, wouldn’t you?
Let’s do the math with some round numbers. Let’s say the average house sells for $500,000. The agent nets 1 1/2% after the split with the broker. Let’s round it to $8,000 a house you sell. That seems like a lot.
You think, surely, you can sell one a month. No, it is not that easy. In today’s market in California when there are not enough homes to sell, and an abundance of agents vying for the same client, I wouldn’t be too optimistic about making six figures as a novice in the first year. To make $400,000, you have to sell 50 houses. It is possible, but not probable.
Real estate is a great career for someone who genuinely likes to work with people, not just trying to make a sale. A potential client can smell a “salesman” a mile away, and stay away.
I find it hard to believe that a builder will pay a salary of $120k to your relative for showing model homes. But it doesn’t hurt to find out more before you decide to change your career.
If you want to know more, contact me.