Another newbie question - re: fees & amount needed to spend upfront when starting out

[ISellRiverview]

I've been doing some reading here and some of the realtors were talking about how the broker covers nothing, not even business cards, and the realtor pays a ton out of pocket, especially when starting out - like for MLS fees, various associations agents have to join in their home state, etc. Not to mention things like yard signs, lock boxes, marketing, etc. I have a small savings set aside for this purpose, but in looking at all this I realized it might not be near enough - what's a reasonable amount I need to have to get started in real estate for various associations, fees, MLS, and other marketing things I need in order to start out?

Is it imperative to have a laptop these days? I have a home PC but hubby uses it for work a lot too so I may need to invest in a 2nd PC in the way of a laptop... And a home fax machine too...

And about how much do most agents spend out of pocket per listing on things like lockbox, yard sign, marketing materials, etc. Just wanted to have an idea so I can save more in this next month before I take the state exam if I need to or work some extra hours at my current job. Perhaps I need to be a buyer's agent starting out to avoid all these fees on new listings! Ha ha!

[coastal]

I had to pay my own mls fees but my broker covered the cost for some advertising, signs and desk space.

You do not need a lap top. I closed over 60 deals last year without one. But I do have a few computers at work and a few at home. You don't need anything fancy. If it can send and receive e-mail and browse the MLS it really does not have to do much else. You can get a cheap machine these days for under $400

[AnotherRE-Techie]

Hi Liane:

Well, I like to think of this in two ways: 1) you are going into business, and there will be costs and 2) You don't have to spend money to make money.

The thing to do is prioritize what you need. Make two lists What you want, and what you need. Concentrate on what you need first, then as you make more money, start working on your wants.

Example: Training class, license, MLS and Realtor membership are all must-haves. Laptop? That's a want.

I worked for 3 years full time without a laptop. My office has communal computers we can use, so I used them. I also knew where every publicly available computer was: libraries, Kinkos, college, etc., so I could stop in and do things if I had to when away from the office. Not the most efficient, but certainly the least expensive.

I also got a Treo fairly quickly, with an unlimited data plan. that way I could look up listings when out in the field. That put off my need for the laptop.

As for business cards, that's a must-have. But you don't have to get the full-color glossy two-sided ones. You could get some inexpensive plain ones that will work. After all, your personality and winning smile will convince the buyers and sellers, not the card!

I was fortunate to have found a broker who paid for the first order of cards, my initial "rookie" training course, and provided signs and lockboxes.

You need to "shop around" for the broker who wil give you the most support in terms of training, supplies, admin services, copier, FAX, etc.

Make your best deal up front, because it will be very hard to change it later!

And be creative about what you will need, and how you will get it for the least amount of money.

[Micheal Pannell Realtor]

hey here is a tip for everyone for business cards. http://www.eliteflyers.com/ i Got 5000 full color front and back for 85 dollars. i refered someone else here to this guy. if you order 4 sets he will drop the price 10 bucks per set

[kensmith]

Mike thanks for that link. Just was about to order cards for my team and that price is much lower then we are looking at. Will have to see if they can do what I want for that price.

A laptop is not needed at all in this business. You don't need it for presentations and our team will do hundreds of transactions this year and not one of my agents uses a laptop on a regular basis. I have one, but that is just because I like to work while in front of the TV.

Home Fax, no need. Just sign up for an efax account or something similar and save the money. I went a long time without a fax at the house.

Most offices have a few generic signs you can use for your first listing or two. Once you close a deal or two then worry about buying signs for yourself. Also make sure that you like your office, when you change you have to buy all new signs. Just dropped $2k on signs so it adds up.

Lockboxes is another item that many offices will have a few of, if not ask around there is always an agent that has an extra lockbox. I have 2 sitting on my bookcase now, wouldn't have any issue letting someone use one if I knew I could get it back when I needed it.

Cards and other printing. This is something that you can do on the cheap. $85 for 5000 cards is great, and other then that print letterhead and envelopes as you need them on your printer. Once you have closed a few deals then worry about buying some nicer looking professionally printed stock.

Nothing you can do about your MLS, state, NAR, and other fees. They are just part of going into business for yourself.

As a side note, most agents will do more buyer sides when they first start out. It is easier to learn the buyer side and the money comes in faster. This lends itself to being ideal for a new agent.

[Micheal Pannell Realtor]

ask for donell, i think he is the owner, he is in florida. i used him to order my office all cards. the are double sides thick paper glossy and the whole nine yards

[Sam Dodd]

You need 6 months income because it could be that long before you see your next check and then business costs. Cards, Computers, Copies, Advertising, MLS Fees, ect. You can save a ton of money doing things yourself and by being very money conscience. Y

[Goknights]

Save as much as possible. Your costs will start small and only increase. It may be a good idea to find a great agent in your area that needs help handling his/her leads. You could be his/her buyer agent and that would be a good way to get experience and learn the business. he/she may also help you with some of your costs if you work really hard.

[coastal]

We just switched over to electronic lock boxes. If you want to buy some of the old push button types I'll let them go at half price. I paid $25 each. I've got 50 or more that you can have for $12.00 each.

[Micheal Pannell Realtor]

hey mike send me a picture, i might buy some of them