Now that we’ve covered the real estate lifestyle; interviewing brokers and setting your own hours, we need to get into the reason you’ve even pursued real estate as a career; the money. Everyone needs to make money to make a living; anyone who says otherwise is (ironically) trying to sell you something. This isn’t to say that you can’t be passionate about your job, or that you have to be a money-hungry scrooge to have a comfortable life. People hold jobs to make money.

Many people hold jobs to have a steady wage and that comforting word “security” for their futures. As thousands of jobs have been laid off over the past few years it’s starting to become obvious that a job no longer means security. Many people go into real estate to be their own boss, to love what they do and to have no limits to the amount of money they can make. That brings us to our next revelation about real estate and money; you’re going to have to work for it.

Home buying shows have long made real estate look like an industry filled with glamorous millionaires who work in their pajamas. While real estate can be an incredibly profitable industry, believe us, there’s plenty of work involved. Agents and brokers live on commission checks, which means they only get paid when someone buys, sells or rents a piece of property. An active Denver real agent‘s office will probably have multiple transactions a day, but agents need to be diligent to make sure they have a steady flow of business for themselves. Commission checks can range from thousands of dollars to fifty bucks, so knowing how much you should get paid is incredibly important, or else checks can slip through the cracks.

So what kinds of commission checks can you expect as a new agent? Most commissions are between 5-7% on the purchase or sale of a property, with the majority of brokers charging 6%. The listing agent sets the sales commission, then will most likely offer a 50/50 split for the buyer’s agent who procures a sale. On rentals agents may offer between 10-20% of one month’s rent or a flat fee for bringing a buyer. Most agents need to help someone buy or sell at least one home a month in order to make real estate work for them. New agents can become quickly discouraged if they aren’t making enough sales, so we recommend that all new agents have a contingency fund in their savings for a new career.

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