Before you sign up for the pre-license course at Real Estate Success Center, I'd like to have a conversation with you. It begins with questions about why you would like to become an agent and how much time you can devote to working as an agent before you receive compensation. As you know, revenue does not come to you until a transaction is closed. Why you want to become a licensed agent is important because you must put your client's needs before your own interests.
Working with real estate clients takes dedication of time and resources. The gratification and compensation that come from doing a good job for your buyers and sellers are absolutely worth it, but not always easy. As a licensed agent, you must be flexible enough to adjust your life to accommodate their needs. This happens often enough that I'd like you to consider all this before you step into the industry.
A revenue stream can sometimes be slow to build in your early weeks or months in real estate, yet business expenses continue.
So, let's look at the expenses for a moment.
The dollar amounts are estimates – some may vary. The Memphis Area Association of REALTORS® (MAAR) membership dues and Multiple Listing Service (MLS) dues may be prorated based on the time of year you join. 12-month dues are listed for purposes of this blog post.
Required Education:
60 Hour Principles of Real Estate course $389 (Required by TN Real Estate Commission)
30 Hour Affiliate Broker Course $165 (Required by TN Real Estate Commission)
Both courses are offered online – prices vary at different schools, classroom vs. online
Complete Tennessee Real Estate Drill and Practice (study guide) $60
PSI National & State Exam $63
Finger Print Application (est.) $45 - $50
Proof of E & O insurance – see below for further information
License Application Fee $91.00
To maintain your new license, you are required to complete 16 hours of continuing education each renewal period (2 years). During your first two years, you'll be taking courses to complete that requirement. Those courses will vary in cost based on the number of hours and where you take them. The six-hour Core course is mandatory, and the remaining 10 hours are elective.
Additional Fees: Fees are believed to be accurate but not guaranteed.
Memphis Area Association of REALTORS™ (MAAR)
Errors and Omissions Insurance – required by the Tennessee Real Estate Commission before they will issue your license. As an example, go to RICE Insurance Services at https://www.risceo.com (two-year term, which coincides with the license term). The premium may be prorated based on the month your license was issued. It is common for firms to require additional coverage, so it is important to ask your prospective broker that question during your interview. Premiums may also vary by insurance carrier. Proof of E & O insurance is required and is submitted with your application prior to the Tennessee Real Estate Commission issuing your license.
Individual brokerage expenses specific to the broker you choose could be roughly $50 to $100 per month.
After your education, the other expenses will come quickly once you pass the national and state exams. Most of the time, your broker will require you to become a member of MAAR and the MLS to access listings for your seller and buyer clients. Membership in the Multiple Listing Service (MLS) enables you to place your new listings in the MLS for all agents to see and help you sell.
Your broker should estimate marketing and printing costs, as they vary, but you need to be prepared to market yourself to build your career. Business cards must be printed, and possibly a website established. Does your broker provide a website for you, or must you maintain it yourself? Have you considered a digital business card with your personal QR Code for those interested in getting in touch or staying in touch? They can also be printed for dual purposes.
So much of real estate is digital, so plan on having a reliable computer you can always have with you. Your smartphone is inadequate for this purpose. You might consider bringing a laptop, tablet, or iPad to show or list a property.
Training is another consideration. Does your broker provide training, or will you be seeking that additional training on your own? Education is rarely free, so plan to develop your business skills through your association or online at my school. I'll be happy to discuss your training program with you and make recommendations, as will your broker. Get some advice; you'll be glad you planned for your training in the long run.
You'll be joining other organizations to promote yourself and your business talents – some are free, others you'll deem worth the investment. You'll have to decide on those, but ask your broker for advice.
Bet you didn't see all that coming at you. Well, it's a big-picture view of your first few months in the real world, and it's always better to be knowledgeable and prepared for your new career.
Want to discuss further and ask questions? I'm happy to help get you started in your real estate career. It is rewarding, so get ready to enjoy your new future.
Sheila Hensley, CDEI
Certified Distance Educator Instructor
Real Estate Success Center
901-373-3167
Shelia Hensley
901-373-3167