“How much money will I make?” is one of the most commonly asked questions from individuals attending our Career Nights, either here in Don Mills or other sessions across Ontario. The Career Nights provide information about a career in real estate, such as challenges and opportunities, and how to enrol.
There is no straightforward answer to that question. The average income per year will vary. Specifically, there is no “average” and a yearly income depends on many factors, such as the number of properties sold or leased, type of property, local market conditions, and specific brokerage policies (i.e., commission arrangement between you and the brokerage). Although there are many types of commission plans in the marketplace, most are derived from two general categories: conventional commission plans and desk fee plans.
In conventional commission plans, commission is paid based on gross commission income received less payment to other brokerages, and fees and expenses paid by the brokerage (e.g., advertising/marketing, occupancy, communication). In desk fee plans, REALTORS® pay monthly fees to the brokerages but have a higher commission split than the conventional plan.
And, even if you sell a property right away, there may still be a time lag before you get paid, depending on the closing date of the transaction.
Advice on how to work in a commission-based profession:
• have sufficient capital available to be financially independent for at least six months
• set a realistic budget and do not overspend when you receive your first big commission
• draw a wage from any commission and put aside a percentage of the funds
Another common question asked at Career Nights is how does one select a brokerage? Again, the answer is not altogether straightforward. It depends on what you are looking for. Choosing the ‘right’ brokerage is important; it is the key to a successful career.
Advice on how to select the ‘right’ brokerage:
• shop around and interview several brokerages and, if possible, different types of brokerages (e.g., franchise vs. independent, full service vs. limited service, listing vs. selling)
• select a brokerage that matches your professional aspirations
• consider the compensation being offered (Note: this should not be your first priority)
• determine if and what kind of professional development, training programs, and support the brokerage offers and at what cost
• determine what expenses the brokerage will pay and what expenses you pay
A third common question relates to the chances of being hired by a brokerage to complete the Articling segment of the Salesperson Registration Education Program. Students must be employed by a brokerage to register with RECO. In fact, all REALTORS® in Ontario must work for a brokerage to be registered with RECO. The chances of not finding employment during the Articling segment is highly unlikely. Brokerages need REALTORS®!
The next two Career Nights will be the last for 2013. Presenters are College curriculum staff and instructors who are also practising REALTORS®. Please sign up and do attend as seats are limited. For more information, go to https://www.facebook.com/OREAcollege/events.
|Wednesday, November 6||London||Four Points by Sheraton, 1150 Wellington Rd. South||6:30 pm – 8:30 pm|
|Wednesday, November 27||Don Mills||OREA, 99 Duncan Mill Rd.||6:30 pm – 8:30 pm|
If you have any other tips/advice for new REALTORS® or potential REALTORS®, please share.