Real estate is a great profession where you can make a LOT of money. However, many people start down that road not realizing what it takes.
What is the difference between areal estate agentand a REALTOR®?
Being a real estate agent is the minimum requirement by the State of Indiana and requires taking classes, passing the exam and taking continuing education every year. Being a REALTOR® is an ADDITIONAL higher privilege requiring a pledge to a high-level Code of Ethics and grants access to the coveted MLS®. You could technically be a real estate agent without being a REALTOR, but it would be virtually impossible to transact business in our market as you wouldn’t have access to the MLS®.
All agents on the Green Pocket Realty team must be licensed agents andREALTORS®.
Don’t start down the road of being a REALTOR® without know these things:
You will be an Independent Contractor. Not an employee, not salary, not hourly. You only make what you earn through straight commissions and you must pay your own taxes.
The current cost (in 2019) of taking the required real estate course is about $600. (see RECP.org). The class takes 9 weeks but you can complete it faster by taking it online.
The State exam is roughly $100 and you must pass with a score of 75% or better. Re-taking the exam requires a new exam registration fee.
After passing exam you must apply with the State of Indiana to be an agent and the application cost is roughly $60.
Once you’ve been notified that you are a licensed real estate agent, you must then “hang your license” with a broker company such as Green Pocket Realty. The managing broker at that broker company is responsible for all agents within their office.
Finally, you must join MIBOR® (Mid Indiana Bureau of REALTORS®) which simultaneously makes you a member of IAR® (Indiana Association of REALTORS®) and NAR® (National Association of REALTORS®). The cost to join is roughly $2,000 (membership, entry fee and MLS tech fee).
Total Cost of Becoming a NEW REALTOR®= $2,760
Once you are a REALTOR® – you must maintain your membership every year at a total cost of about $1,100 per year.
As you can see the barrier is high, however, that is on purpose. The professionals within our industry wish to keep the bar high as to promote the highest level of professionalism and integrity possible.
When you consider the high amount of money you can make as a REALTOR® and compare it to the minimum barrier of entry ($2,760) – it is one of the best decisions you can make. Just compare this to the cost of a college degree!
Lazy agents don’t make anything. Moderate to great agents make incomes to put them in the top 1% of wage earners in America!
Another misnomer that we wish to dispel about making money in real estate is that business will just magically appear.
That is not the case.
95% of being a REALTOR® is reaching out to people and making yourself known. We call that lead-generation. You must always be looking to gain relationships with people so that you will be “top-of-mind” when it comes time for them to buyer or sell a house. Successful agents know how to make phone calls, talk to people and become known.
Ultimately, successful agents work BY REFERRAL which means that people tell their friends and family and your phone rings!
If you would like to pursue becoming a REALTOR® just give us a call at (317) 662-4710 Ext 501. Or visit us at greenpocketrealty.com/career