Is Real Estate Right For You?
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1 Is Real Estate Right For You? Presented By Central Pennsylvania
2 2 - Is real estate right for you? 3 - Getting your license Table of Contents 4 - Money talk 5 - For veterans Why real estate? 6 - Choosing a brokerage 8 - What does it take to be successful in real estate? 8 - CBRB is committed to the success of your business 9 - Business growth through education 10 - Office map and contact information
3 Is Real Estate Right for You? Are you considering a career as in real estate? Learn what to expect in the real estate industry and the steps to build your own business as an independent real estate salesperson. If you are a self-starter, have impeccable organizational, communication, and follow-up skills and have a genuine interest in building strong relationships with people, you have many of the characteristics it takes to be successful in real estate. When you are looking to make a career change, we know that a lot of research must be done and many questions need to be answered. Managing your own business in in real estate sales is about you and your willingness to embrace something new, even if you have no prior experience. We have compiled a few of the most frequently asked questions to assist you in getting some basic information. 2
4 Getting Your License A real estate salesperson s license is required if you want to sell real estate in Pennsylvania. You can complete the required training, become a licensed real estate agent, and start your new business in just a matter of months. In fact, some daytime classes can be completed in as little as two weeks so that you ll be ready to take the state licensing exam. The Pennsylvania Real Estate Commission grants and renews licenses to real estate sales associates as well as administers and enforces the laws of the Commonwealth relating to real estate activities for which licensing is required. The first step toward a career in the real estate business is preparation for the license exam. The state requires completion of 60 hours of instruction in two main courses of study: Real Estate Fundamentals and Real Estate Practice. The state requires class attendance of at least 80% and passing a final exam. When you re finished, you will receive a certified transcript indicating you ve completed the coursework. Online courses are an option as well as traditional in-class school sessions locally. Real Estate Fundamentals Emphasis is on the underlying concepts of land, property, rights in realty and the means, methods and laws that govern the conveyance of these rights. Real Estate Practice This course is designed to acquaint the student in the basic techniques, procedures, regulations and ethics involved in a real estate transaction, along with a working knowledge of the forms and documents used including related mathematics. Pennsylvania uses PSI as the examination board that administers Real Estate professional exams. For more information, visit Upon successful completion of the Fundamentals and Practice classes you may register for the licensing exam. After passing the licensing test you can affiliate with a brokerage. 3
5 Money Talk As an independent agent you decide your future earning potential. With available support and guidance from Coldwell Banker Residential Brokerage, combined with your desire for growth, the possibilities are unlimited - it is ultimately up to you and your level of commitment. There is no limit to your earning potential as an independent sales associate. This is how earnings on a typical sale are calculated: Sales price of the home... $100,000 Commission Rate... 6% Gross Commission... $6,000 HOW IS COMMISSION DIVIDED? A traditional real estate company, depending on market area variations, would pay around half of the commission to the agent, and the company would keep the rest to pay expenses such as marketing, promotion, office maintenance, and more. As the agent s sales volume increases throughout the calendar year, the agent s split percentage of the commission might increase. Under this model, most, if not all of, the overhead office expenses are paid by the real estate company. Here s a very basic 50% model: 50% to listing agency... $3,000 50% to selling agency... $3,000 Your personal share of this commission can range from 52% to 85%, based upon your total closed commissions according to the commission plan you select. There are less traditional real estate companies who charge affiliated agents overhead costs on a per-use, per-transaction, and/or per month basis. In return for helping to stabilize the company s bottom line, the company splits the commission at a higher percentage than with the traditional model, perhaps as high as 100%. As the financial risk shifts to the agents, this model is popular primarily with experienced agents. Ask the office manager about all your commission plan options. 4
6 Money Talk HOW CAN I PLAN MY INCOME? Using the estimates below of closed sales production, you could estimate your approximate annual gross income as follows: One unit per month $18,000 Two units per month $45,000 Three units per month $77,000 Notes: Tax withholding is the independent sales associate s responsibility. Expenses are the agent s responsibility and may be tax deductible. Additional income may be generated from referrals. There is no limit on earning potential. APPROXIMATELY HOW MUCH DOES IT COST TO GET STARTED IN REAL ESTATE? Shown below is an example of the typical investment needed to begin in real estate sales: Pre-license Tuition... Approx. $400-$500 License Exam Fee... Approx. $60 one-time Licensing Fee... Approx. $100/Two Years Legal Assistance... Approx. $50 per month Multi-List Key... Approx. $50 one-time Multi-List Fee... Approx. $250 initial + $550/year Board of Realtors Application... Approx. $300 one-time Board of Realtors Membership... Approx. $500/Year For Veterans If you or your spouse is a U.S. Military Veteran, Coldwell Banker Residential Brokerage Central PA presents to you a complete Veteran Success program of coaching, education, marketing and business materials for your first year as an independent sales associate. Starting in a new business can be financially challenging, so Coldwell Banker Residential Brokerage is offering to provide you with funding that would be helpful to offset your real estate related expenses including classes, state exam, initial real estate license, REALTOR board, MLS fees, Legal Assistance Program, signs and marketing materials that are not covered under your GI Bill Benefits. Be sure to ask whether you qualify for this program at your appointment. 5
7 Why Real Estate? Take Control As an independent contractor you are in complete control of your own business. You make the decisions. The Sky s the Limit As a real estate professional, your income isn t restricted. Your income is largely dictated by the time you invest. You can choose to grow your real estate business by adding an assistant or get the appropriate license that lets you build your own brokerage. The growth potential is limitless. Attitude and Enthusiasm Go a Long Way By combining your real estate knowledge with a good attitude and solid work ethic there are virtually no limits for the growth of your real estate business. Your customers will recognize and appreciate your enthusiasm, and they ll reward you for it with repeat referral business. Flexible Schedule Set your day-to-day schedule according to what s best for you. That allows you the time to always be present at family events, the holidays and social gatherings. Genuine Satisfaction You are the expert throughout a very exciting time for both buyers and sellers. Your clients will genuinely appreciate the help that you give them, and you ll experience the sincere personal rewards that only come with helping customers find their perfect home or selling a home at the right price. Opportunity to Build Your Network Real estate agents have a vast network of contacts within their market that stretches across many miles. This list of connections include other real estate agents and brokers, potential buyers and sellers, appraisers, home inspectors, mortgage loan officers and many others. Choosing A Brokerage A major decision in the process of starting your real estate business is where to hang your license. As a Pennsylvania real estate salesperson, you are required to hang your license at a brokerage within the state. Brokerages in your area will fall into one of two broad camps: national brand or independent. National brand brokerages will have the resources of a well-established name (like Coldwell Banker) that many new agents feel is a competitive advantage when they are just getting started. Also, national brands tend to offer more resources and support than local independent brokerages. On the other hand, a small independent brand may offer more flexibility to try new business ideas on a local level. 6
8 Choosing A Brokerage Office size is a consideration. Your choice might range from companies with less than ten agents to companies with perhaps hundreds of agents. The larger companies might have more than one office, so office size might be a more important consideration than company size. You might like the excitement and buzz of a large office, or you might be more comfortable with the cohesiveness of a smaller office. That s strictly a personal preference. Brand Prominence might matter to you. A lot of for-sale signs in yards usually mean that many agents are affiliated with that real estate company. It can be an advantage to promote your brokerage s market share to sellers when meeting with them to list their property for sale. When you walk into a prospective real estate office, ask yourself whether you would feel proud to bring your clients there. While independent sales associates can meet clients anywhere, you may be meeting your buyer clients at the office before showing them properties, and you will probably return there to complete paperwork if they want to place an offer on one of the properties you showed them. Beside the esthetics of the office, does it have adequate workspace, and would you have use of computers, copier and modern office equipment? Will you have access to the office after hours? Is parking available for agents and clients? Something less tangible is how you feel about a company. After meeting with a prospective office manager or broker, ask yourself how you feel about him or her, and the company. Your intuition should weigh in heavily on your decision. You might also visit the company s website, find their directory, and call a couple of agents who are affiliated with the company. Before meeting with a brokerage, you should consider what kind of real estate company appeals to you. There s no one-size-fits-all, so find the business model, environment, and culture that s best for you! 7
9 What Does it Take to be Successful in Real Estate? It takes a commitment to being the best you can be! It takes a strong desire to help people. Real estate is a people business and the people are the number one priority. Successful agents should be willing to take the time to develop the skills necessary to be a true professional. Hard work, a great attitude, discipline, and a passion for the business is what it really takes. Taking advantage of the opportunities that Coldwell Banker Residential Brokerage provides will assist you in becoming the best that you can be. Real Estate is not a normal 9-5 business. Some of the qualifications that are required to be successful as an independent real estate salesperson and in your real estate business are good people skills, determination, motivation, a strong desire to be successful and most of all, a genuine desire to help people. Many are concerned about experience in selling. The fact is that everyone is in sales, and everyone is a sales person to a certain degree. Whether you think so or not, you are most likely in sales in your current occupation. If you work for a bank, an insurance company, a restaurant, a medical clinic, or any other business, all businesses are selling a product or service. Selling skills are developed through learning the business and working hard. Coldwell Banker Residential Brokerage offers programs that you can use to develop and further enhance the skills necessary to build your own business. CBRB is committed to the success of your business Coldwell Banker Residential Brokerage is committed to an environment that where independent agents can achieve sustainable growth. We partner with dedicated professionals who are committed to growing their business, regardless of market conditions. Affiliated agents are in a position to achieve their full potential when cutting-edge technology, personal attention from office managers, and ongoing educational opportunities and programs are available to them. Most importantly, Coldwell Banker Residential Brokerage believes that a professional and supportive environment of like-minded, ambitious salespeople inspires success. Our Core Values No one walks alone When we grow, we give back Strive to be the best through continuous improvement Empower people to succeed Each person takes responsibility for the outcomes they produce 8
10 Business Growth Through Education Education offered at most real estate companies focuses on the nuts and bolts of managing a real estate transaction. Coldwell Banker Residential Brokerage offers that, and more. The education team provides access to progressive, agent focused, results-driven optional programs designed to help you grow your business to any level you choose. Monthly Skillbuilder Sessions - You have the option to learn from top real estate professionals within Coldwell Banker Residential Brokerage and others through a company-wide intensive 12-session series, regular workshops, create business plans, start prospecting in a group setting and more. Online-Based Education Tools - Opportunities to explore new topics and fine-tune your knowledge with available online, custom-designed video courses and regular webinars on the subjects that matter to your business. Guidance - Coldwell Banker Residential Brokerage branch managers collectively represent hundreds of years of full-time, high-level residential real estate experience. In each office, the branch manager offers independent sales associates on-going support and education relating to transaction management and client relations. Ongoing Education - Live and on-demand optional educational opportunities focused on cutting edge sales tactics help make skill development convenient for independent sales professionals. These sessions are comprised of informative presentations plus hands-on workshops designed to help participants develop and practice the most effective business building techniques. Additional offered sessions focus on brand building, customer relationship software, and lead generation and management systems. Local Marketing Team - Coldwell Banker Residential Brokerage has a hands-on marketing approach that includes local support team members who are available to meet with you on your marketing plan and business promotion goals. They are backed by the resources of a powerful regional creative services group. Coldwell Banker Residential Brokerage takes pride in offering independent sales associates advantages that other companies don t. From award winning on-going education to cutting edge innovative technologies, Coldwell Banker invests in the tools and support you can use to become a top associate. 9
11 Office Map and Directory Pennsylvania Snyder Schuylkill Huntingdon Fulton Franklin Chambersburg Greencastle Waynesboro Juniata Dauphin Perry Kutztown Perry County Lebanon Berks Lebanon Wyomissing Harrisburg Hershey Camp Hill Carlisle Ephrata Cumberland Dillsburg Lancaster York Lancaster Adams York Queen York Market Chester Hanover Washington Frederick Carroll Baltimore Harford State Region Maryland Camp Hill 3915 Market St Camp Hill, PA Tel Greencastle 25 S Antrim Way Greencastle, PA Tel Lancaster 1000 N Prince St Lancaster, PA Tel Wyomissing 975 Berkshire Blvd Wyomissing, PA Tel Carlisle 52 West Pomfret St Carlisle, PA Tel Hanover 1060 Baltimore St Hanover, PA Tel Lebanon 209 W Penn Ave Cleona, PA Tel York Market 2210 E Market St York, PA Tel Chambersburg 464 Gateway Ave Chambersburg, PA Tel Harrisburg 5050 Linglestown Rd Harrisburg, PA Tel Perry County 8407 Spring Rd New Bloomfield, PA Tel York Queen 1499 S Queen St York, PA Tel Dillsburg 19 N Baltimore St Dillsburg, PA Tel Hershey 555 E Chocolate Ave Hershey, PA Tel Waynesboro 1814 E Main St Waynesboro, PA Tel Ephrata 1656 W Main St Ephrata, PA Tel Kutztown 7 South Kemp Rd Kutztown, PA Tel As of 12/
12 cpa.theplacetobecb.com 2017 Coldwell Banker Real Estate LLC. All rights reserved. Coldwell Banker Real Estate LLC fully supports the principles of the Fair Housing Act and Equal Opportunity Act. Operated by a subsidiary of NRT LLC. Coldwell Banker and the Coldwell Banker logo are registered service marks owned by Coldwell Banker Real Estate LLC. the Company is intended to be that of an independent contractor licensed real estate sales associate CENPA-5/17
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