Career Opportunity
What You Need To Know To Get Started
In a Career In Real Estate.
Country Home Real Estate, Inc.
1911 E. Market Street
York, PA 17402
(717) 755-1800
(800) 218-7380
You have an interest in the world of real estate. By reading this Guide you will be one step closer to deciding whether a full or part time career in real estate is right for you. The real estate industry provides an exciting, rewarding career with two of the most desirable attributes: flexibility of time and unlimited income.
Through this Guide you will learn:
1. What Real Estate Agents Do. Page 2-3
2. The Benefits of a Real Estate Career. Page 4-5
3. The Educational Requirements. Page 6
4. The Costs of Becoming an Agent. Page 7-8
5. How Real Estate Agents Get Paid. Page 9
6. The Benefits of Working at Country Home Real Estate. Page 10-11
7. How to Get Started. Page 12
1. What Real Estate Agents Do.
The first thing that you need to know is what exactly real estate agents do. The answer is quite simple: real estate agents either find homes for buyers or market homes for sellers. Buyer’s Agents work with buyers and find real estate that their buyer may want to purchase. Seller’s Agents lists their client’s house and looks for potential buyers. We will discuss in more detail both buyer and seller agency, but before that we will discuss the nature of agency.
The Nature of Agency
An agent, in any business, is someone that is hired to represent someone else. In real estate, agents represent either buyers or sellers who then become their clients. It is important to know that a client is different than a customer. When working with a client you must always work in their best interest. You have certain responsibilities to your client such as care, obedience, loyalty, and disclosure. Someone that is allowing you to represent them in a real estate transaction should expect these things.
Let’s look at an example of a client-agent relationship: John wishes to sell his home and after searching for an agent he decides to go with Joe. Joe and John sign a seller agency relationship agreement and now Joe must go to work for John. He now has the responsibility of helping Joe come up with a reasonable sale price through performing a Comparative Market Analysis. Then he must advertise the property and arrange for it to be shown to potential buyers. He will need to explain to John any and all offers that potential buyers make on the home. The final decisions are John’s; Joe is simply working with John to help him make informed and wise decisions in John’s best interest. After the home is sold, Joe will receive compensation for the work he did for John through a commission.
It is important to know the difference between a customer and a client. In the example, John would be the client and any potential buyers would be customers. Agents hold different responsibilities to customers than they do to their clients because they are working in their client’s interest before their customers. Customers are provided with factual information and are entitled to fair and honest dealings as a consumer, but they do not receive advice and counsel. The agent works for the client and with the customers.
Agents can either have single agency, meaning they work with only the buyer or only the seller, or dual agency, which means they are the agent for both the buyer and the seller. This is shown in the diagrams on the next page.
Buyer’s Agent:
When a real estate agent works for a buyer, he/she is the “buyers agent.” The real estate agent’s job is to find a home that will fit the buyers’ needs. In what area do they wish to live? Do they desire a specific school district? Do they need a rancher, or would they rather have a two-story? Do they want several acres for horses, or would they rather live in a townhouse and not shovel snow? What is their price range? Finding a home to fit the buyer’s needs is the first job of the buyer’s agent.
A buyer’s agent will show potential homes to the buyer. After one is selected, the agent will help the buyer write an offer, called an “Agreement of Sale,” for the home. The buyer’s agent will facilitate the negotiation process with the seller’s agent. After all terms are accepted in writing by both buyer and seller, the Agreement of Sale is said to be “ratified.” The buyer’s agent will then oversee the details of the sale, such as home inspections, pest inspections, and septic or well tests.
The agent will also keep in touch with the buyer’s loan officer to make sure the mortgage process goes smoothly. The agent will convey all necessary information to the settlement company, and will attend settlement.
Seller’s Agent:
When a real estate agent works for a seller, he/she is the “seller’s agent.” The real estate agent “lists” the home for sale, and markets the home to potential homebuyers. Marketing homes for sale is the key to becoming a successful real estate agent. There is a saying in the industry, “If you list, you last.” That is, if you as a real estate agent always have a good listing inventory, you will always be in a position to make money, and your career will flourish.
There are many advantages to being a Seller’s Agent: 1) Seller’s Agents do not spend every evening and weekend driving around to look at houses with buyers 2) Seller’s Agents negotiate their commission with the seller, whereas buyer’s agents usually must accept whatever the seller’s agent is offering to them. Because of this, Seller’s Agents generally make more money and spend less personal time than Buyer’s Agents.
To market a home for a seller, the Seller’s Agent will research the history of the home, prepare a market analysis of the home to determine the listing price range of the home, develop a marketing plan specific to the property, present the marketing plan to the sellers, and implement the marketing plan. Research must go into preparing the Multi-list Information Sheet to be entered into the MLS Computer System so that other real estate agents can show and sell the property. The agent will take care of details such as yard signs, directional signs and lock boxes. The Seller’s Agent will keep track of the “showings” of the house…What agents made appointments to show the home to clients? What was the feedback of the showings?
When an offer comes in from another agent, the Seller’s Agent must present the offer to the seller, explaining the offer in detail. What is the sale price of the offer? How soon does the buyer wish to settle? Is the buyer asking the seller for money back towards closing costs? Does the buyer want the refrigerator to be included in the sale? After the sale has been negotiated and all terms are agreed upon in writing by both seller and buyer, the seller’s agent will focus on making sure that the details of the sale are accomplished by staying in touch with the buyer’s agent, and working out any problems that arise. The seller’s agent will also attend settlement.
Working with both Sellers and Buyers:
An agent may choose to work with both sellers and buyers, and most agents do. Real Estate firms are licensed to work for both sellers and buyers. When a real estate firm represents both the seller and the buyer on the same transaction, it is called Dual Agency. In a Dual Agency transaction, the interests of both seller and buyer are protected by confidentiality and honesty. Neither seller nor buyer should be favored, but both should receive equal and honest treatment. The goal is to bring all parties together for the benefit of everyone.
Single Agency
Selling
Agent
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2. The Benefits of a Real Estate Career
This section will discuss five major benefits that are unique in having a career in real estate. These major benefits are: real estate agents are independent contractors, your time is your own, you can have unlimited income, a professional yet varied environment, and expanded opportunities.
Real Estate Agents are independent contractors.
Have you ever wanted to run your own business? If you become a real estate agent, that is exactly what you will be doing. As an independent contractor, you choose where you want to work, how much you want to work, how much you want to be paid, and what clients you want to represent.
Your time is your own.
As a real estate agent, you set your own hours. This is great for those who are self-disciplined, not so good for those who lack willpower. Ask yourself: When the alarm clock goes off, will I chose to stay in bed, or will I be the first one in the office to receive a walk-in customer?
On the other hand, are you working too much? Perhaps a career in real estate is just the thing that will allow you to make the money you need in less time, so that you can spend more time with your family. Real estate sales allows you to “work smart,” not work long hours. You will learn how to work smarter at Country Home Real Estate.
Unlimited income.
As an independent contractor, you will determine how much you will make. If your average commission check from listing or selling a house is $1,500 and you wish to make $40,000 per year, you will need to sell 27 houses. If you want to make $50,000 you will need to sell 34 houses…that’s about 3 settlements a month. (Which, by the way, may certainly be an attainable goal in your first year.) The sky is the limit. Figure out how much money you wish to make and do the math: I want to make $____________ divided by $1,500 average check = ______ deals. (First, ask what the average commission check is…is may not be $1,500.)
Professional yet varied environment.
Most of a real estate agent’s time is spent in the office, prospecting for business, doing research for sellers and buyers, implementing marketing plans, and taking care of pending sales. Since agents are independent contractors, they are not “chained to the desk,” nor are they required to give an account of their time. They come and go on appointments as they please.
Business attire is expected, but certainly may be “business casual.” (It is good to wear a suit to settlement, but it is not necessary everyday.) Many exceptions to the “business attire” rule include showing farms or acreage, where jeans and hiking boots may be in order, or when installing yard signs.
Country Home Real Estate is a professional company founded on Judeo/Christian ethics where honesty and integrity are core values. We do NOT advocate high-pressure sales. Those who wish to be high-pressure salespeople are encouraged to join another real estate firm.
Expanded opportunities.
As an agent learns the real estate industry, he/she may become interested in other areas of opportunity such as property management, home building, or personal investment. Investments can include buying property to resell, or buying property to keep for rental income. Many real estate agents decide to purchase investment property once they get to know their market…they know when a good deal comes along, and since they have the inside information, they buy it themselves! Perfectly legal.
Other opportunities include furthering one’s education to become an Associate Broker, able to manage real estate offices, or to become a Broker of Record, operating your own office. Country Home Real Estate offers a unique plan for those who wish to open their own Country Home Real Estate office…but that’s another book.
3. The Educational Requirements
of Becoming a Real Estate Agent
What do you need to do in order to become a licensed Agent? It is simple, you have to complete pre-license classes and then pass the State Real Estate Exam.
…In Pennsylvania
The State Real Estate Commission of the Commonwealth of Pennsylvania requires two pre-license classes for those wishing to practice real estate. The two classes are:
1) Real Estate Fundamentals
2) Real Estate Practice
Depending upon which real estate school one attends, the classes may take approximately one month each. (Please refer to the brochures of recommended real estate schools.)
After completing the two pre-license classes, the individual is eligible to take the State Real Estate Exam.
Credits for taking the pre-license classes are good for 10 years. (If you take one class, but circumstances prevent you from taking another class right away, you do not have to start over.)
An individual may take the State Real Estate Exam as many times as necessary in order to pass. Please note: 87% of the people that take the Exam do not pass it the first time. Do not be discouraged! The exam is “tricky.” You may know the material, but still fail the test. Be patient and try again. If this happens to you, call your broker for uplifting stories of those who had to take the test multiple times who became very successful agents!
4. The Costs of Being an Agent.
This chapter will go over in detail the costs of becoming a real estate agent, and maintaining a real estate license.
Obtaining a license:
Two pre-licensing classes are approximately $200 to $250 each. Text books may be $20 to $50.
The State Real Estate Exam costs $45 each time you take it, so it pays to study. (But remember, most people take it more than once, so budget $90 for the exam.)
Total costs of obtaining a real estate license will run approximately $500 to $650 depending upon which real estate school you attend.
The Frederick Academy is an excellent school, and is the most economical as well. Country Home Real Estate, Inc. is not affiliated with any school, but recommends The Frederick Academy as first choice for these reasons. If going to The Frederick Academy, $500 is a safe budget.
Beginning your practice:
Once you have passed the exam, you will want to affiliate with a full-service real estate office that provides access to the MLS System. The MLS System is operated by the Realtors Association, and therefore is only accessible to those offices that are members of the Realtors Association. Country Home Real Estate is such an office. Agents at these offices are required to pay fees and dues to the Realtors Association and to the MLS System. (These fees and dues are imposed by the Realtors Association and MLS System – not by Country Home.) Dues and fees are pro-rated throughout the year. Current costs are as follows:
$ 400 initiation fee (one-time)
$ 96 PA State License
$ 420 yearly membership dues (RAYAC, PAR,NAR)
$ 475 yearly MLS dues
$ 50 Lockbox Key issuance fee (one-time)
$ 148 Lockbox Key yearly lease
$1,589 Total dues and fees for the first year
Maintaining your license:
Ongoing dues and fees will be as follows, subject to increase from time to time:
$ 420 yearly membership dues (RAYAC,PAR,NAR)
$ 475 yearly MLS dues
$ 48 State License ($96 every 2 years)
$ 148 Lockbox Key yearly lease
$ 1,091 Total dues and fees each subsequent year
Ongoing Educational Requirements and Costs:
The State Real Estate Commission requires licensees to take two continuing education courses, every two years. The classes are 7 hours each, for a total of 14 hours. Depending upon which school you attend, the classes will cost from $40 to $150. The expensive ones are more than 7 hours each and may be used as credits toward other designations such as an Associate Broker license. You are not required to take expensive classes. Most continuing education classes are $55 each, so budget $110 for education every two years.
Recap of Costs:
Obtaining a license: $ 500
Dues & Fees first year: $1,589
Total Investment in your new career: $2,089
One Average Commission Check: $1,700
You need to make little more than one sale
to recapture your investment.
In what other business can you do that?!
A career in real estate is very cost effective.
5. How Real Estate Agents Get Paid.
Generally, real estate agents work on commission. That means that they get paid a percentage of the sale price when a property goes to settlement. If a property never goes to settlement, the agent is not paid. This is good for people who want to get paid on the basis of how much work they do. This is bad for the people that drive buyers around every weekend, only to find that their clients were not really serious about buying a home after all.
Here’s an example: If an agent lists a home for 6% commission, he may offer 3% to a buyer’s agent for selling the home. If the home is sold for $100,000 the gross commission is $6,000 which would be $3,000 to each office. If the office splits the commission with the agent, and the agent’s paycheck would be $1,500.
Here is why it is good to be a listing agent (i.e. seller’s agent):
If an agent lists a home for 7% commission, he may still offer 3% to a buyer’s agent for selling the home. When the home is sold for $100,000 the gross commission is $7,000 but the buyer’s agent still only gets $3,000. The listing agent gets $4,000 to split with his office, taking home $2,000. Listing agents are more in control of how much they make.
Real Estate firms offer a variety of commission structures to agents. Some offer a 50/50 split such as in the example above. Some offer more to experienced agents.
In many areas, full time agents can expect to make $30,000 to $50,000 their first year in real estate sales. Part time agents (those who have one transaction per month) can expect to make $20,000. or more.
You can earn as much money as you want. Some agents at Country Home Real Estate are making $80,000 and $100,000 per year. If you want to make more than that, you may need to hire an assistant to help you with the details.
6. The Benefits of Working At
Country Home Real Estate.
A real estate agent may get licensed and then work as an Independent contractor for any broker they please. However, the management at Country Home feels that they are the best company to work for, especially for new agents. They offer such things as in-house training and a positive atmosphere for new agents to come and learn the trade. There are also some other benefits that Country Home offers that will be discussed further.
In-house training.
After you’ve been through the pre-license classes and have passed your exam, your on-the-job training will begin right here at Country Home Real Estate. Other companies send people away for a week of training out of town. We prefer the hands-on training method of train-while-you-work. Training classes are one afternoon or one evening per week for six weeks and are tailored around the scheduling needs of the new licensees. Our focus is to get you started making money as soon as possible. You should expect to make appointments with new clients the very first week. Country Home staff will be available to go on appointments with you as long as you need help. In-house training is free.
Positive atmosphere.
Our motto is “Attitude is Everything.” We are a happy bunch. We are not a dog-eat-dog office. Our agents and staff are true team players, working to help each other.
We live here.
This makes us accountable to our agents and our clients. We are your neighbors. Country Home Real Estate offices are independently owned and operated. This one is owned by someone who lives in your area. Country Home offices do not constitute some out-of-state-mega-company. You are not a number here.
No hidden charges.
Other companies may charge desk fees, voice mail fees, fees for making too many copies on the copy machine, fees for providing forms or other supplies. Some companies make the agents buy their own yard signs or lockboxes to place on their listings. Some make the agents pay a portion of the company advertising. Some companies charge the agent for franchise-specific training classes. At Country Home Real Estate, we charge the agent nothing. No fees are ever charged to Country Home agents. Here, you will never have to buy your own Agreement of Sale forms or your own yard signs. We won’t keep track of how many copies you make. Country Home Real Estate provides those things for an agent to be successful.
We pay the most.
At Country Home Real Estate, an agent is on a 50/50 split with the company until he/she has made $25,000. At that point, every commission that the agent brings in belongs to the agent, 100% until the end of the year (anniversary date for that agent).
No other company in the area puts a cap on what the company can make off of an agent. When the agent has made $25,000 and the company has made $25,000 everything else for the rest of the year belongs to the agent.
Here is a recent example: An agent at Country Home Real Estate made $25,000 by June. He then listed a farm for $450,000 at 10% commission. He offered 3% to the buyer’s agent and kept 7% for himself. When the farm settled, the agents check was: $31,500. This is a true story, August 2002.
Would you like to get a paycheck of $31,500?
7. How To Get Started
Country Home Real Estate, Inc. recommends The Frederick Academy of Real Estate for pre-license classes, based upon the success rate of its students.
The Frederick Academy of Real Estate
18 South George Street, Suite 217
York, PA 17401
Phone: (888) 857-2898
The Institute of Real Estate Studies
Multiple Locations in York and Harrisburg
Call: 1-877-290-3711
Classes are conveniently held at 15 N. Main Street, Stewartstown, PA, three evenings per week. Please refer to the following information, or call for additional locations and times.
Thank you for your interest in a career in real estate! Keep us informed in your progress, as we are eager to help you succeed! If you have any questions involving your interest in a career working at Country Home Real Estate, please give us a call!
Thank you,
Mindy Vance Bouman
Managing Broker, GRI
Marty Sowa
General Manager
Associate Broker SRES ABR
Country Home®
Real Estate
1911 E. Market Street
York, PA 17402
(717) 755-1800
(800) 218-7380
A Career Opportunity is waiting for you.