My realtor claimed that she is working for me for free, and claimed that she legally cannot show me the inside of the house (when we were standing right front of the house for sale) without signing a contract for her to be my exclusive realtor. I just didn't feel right, that's why I am learning the insights via your videos, and subscribed!
She can't show you the house without a buyer representation agreement because agents automatically represent the seller by default (sub-agency). The agent can get in trouble if they say the wrong thing about the house without the buyer representation agreement signed. Your realtor is trying to do the right thing. At the very least sign the agreement where they represent you ONLY for that specific property. I am licensed in MD, this might not apply to every state.
I’m looking for a brokerage to hang my license. I interviewed KW and it was okay if you have money to give away. The split was 70/30. I interviewed Coldwell banker it was $110 a month and a 50/50 split. I interviewed at Remax 90/10 split and $240 a month desk fee. Last but not least Cutler they said no fees for the first year, 50/50 split. It’s a toss up between Cutler and Remax. I’m in Columbus Ohio it’s a super hot market.
Thanks man I’m pursuing a career in Business Management and entrepreneurship and a minor in real estate. This is really a huge eye opener appreciate it✊🏾
Thanks for this video brother im tired of seeing so many real estate people say oh yea we make 11k a month this that and another..... hyping people up. when their not telling you your gonna have to split up that 11k between the brokerage and all that plus you gotta pay taxes too so that 11k aint really 11k to take home in your pocket! Much RESPECT to you dude for being REAL :)
Referral fees from relocation corporations could cut that amount in half, plus your time, gas money, lunch or dinner expenses, taxes, mls fees, office supplies, etc..you are an independent contractor.
Wow before I really wanted to become a real estate but google said only 45 k a year but then this guy he reminded us that we are above average and we can earn over 500 k a year I’m so happy man 😊
This is definitely one of the more helpful videos I've seen on this topic, very transparent and taught me exactly what I was looking to learn, thank you!
Good job Matt. The first big mistake for most agents is a business model, a focus. So this is Matt's business model, this will differ from different Brokers. Now I I have much better splits but my market is much different of course. My way of teaching this is to put a value to your hourly rate. Let's say you want a rate of $150 per hour, I would have a max of 38 hours with the deal above minus expenses, which can make or break a deal. And adding to the fun, if this is a referral, add another 25% plus coming out of your pocket. Now let's say this is a new construction deal. Now you are talking about $500 per hour or more, take note newbies, lol. Now for the dark side of the force, the expense can add up to alot. Gas, closing gifts, marketing, lead gen tools, signs, key box, and did I say marketing? Keep track of it all per deal. And, all the time spent on deals that fell through or clients that ghost. All that zero time goes into your year end. Great job Matt, I subscribed!!!!!
So you're telling me that after "Other Expenses" you're still willing to help a buyer for only 2.75%? Come on man. Use the buyer representation agreement from the beginning and have them agree to pay you the remaining gap for 3%. Or move to a brokerage that only charges you a transaction fee of $99 and lets you keep all your commission.
Nice overview. That is way more fees I imagined. Thinking of getting my license and doing this to a) supplement my day job income at first, but once I get going b) replace my day job income and c) pursue flipping/investing in my own properties. Is this really something someone can do part time (like nights and weekends)? How many houses can you potentially sell per month/year part time vs full time?
Really depends. You can always start part-time and then go full-time. It's tough to do part-time, but once you get a few sales under your belt, you'll want to go full-time
How can a buying agent represent the buyer's best interest when they are getting a percentage of the sale price? The buyer's best interest is a lower sale price but the agent makes more money the higher the price
I have a friend who started off as a part time Real Estate Agent back in 2017. He didn't know what to expect. He didnt even think he was the right person to engage and communicate with clients or anything like that. He figured once he got his license, he was gonna sell one, maybe two or three houses per year as extra side cash. Well skip ahead 2 years from when he started out and now, he has closed 21 deals and has accumulated $187k take home from JUST that as a side job. He keeps the money in a high yield savings acct so it pretty much grows a bit on it's own. Now I want to be an agent lol
@@TheMattLeighton Like what firm? I'm not too sure. I dont ask a whole lot of questions. All I know is that he does have experience in sales because his full time job is selling time shares. Hahahaha. Which ironically, he doesnt make a whole lot doing that ($60k a year salary I believe) but he likes doing it. I just found it hilariously ironic that his side hustle job brings home more $$$ than his full time.
Great video - well explained. I have been a real estate photographer/videographer for the past few years. Do you think it'd be beneficial to get my license? Do you think the added value of my experience with photo and video would increase my deals?
Did you account for lead generation & home marketing expenses (photography, staging, advertising (print and digital flyers/ads, facebook/google ads) etc?
True but then you have to be prepared for not selling a house for a few months. I always thought being a real estate agent would be cool but I prefer the steady income.
I noticed you said you are in Arlington. I am actually a GMU student and have had thoughts of becoming a real estate agent. Would you be willing to talk over the phone?
If real estate agents only make that much for one sale how are so many agents rich as hell with nice houses lol this vid actually kinda scares me to want to become an agent
It's not supposed to scare you, it's supposed to be realistic. The agents you see that are rich with nice houses are either faking it or the best of the best
So if my budget to buy a house in NJ is 100-150k (because it is possible) then there will be less interested real state happy to help me? (Meaning the commission they are getting in considerably lower). Thanks
+Luis Almeyda there's a buyer for every price and a real estate agent for every price. Your real estate agent won't really care about the price point your at, their goal will be to provide such an amazing experience that you will tell all your friends to use that agent (ideally)
I think Realtors need more regulations..They can say anything and never be held accountable should it blow up on their client..Besides what the incentive to help someone buy a home for realtors to get their client the best deal? We all know the higher the cost of the home the bigger the commission..So realtors aren't out there to help a client get a deal.
As someone who is considering getting into Real Estate, I would gladly offer a lower priced house and fit you a better deal if it results in a close on the sale. If folks walk away, then I can see unconfident agents upselling to maximize the commissions in between dry moments. Both side must win for both sides to benefit. If one side loses then it gets worse for both sides.
When I used to work a commission based job, selling the higher price was not the only thing on my mind. I would gladly help people into a lower price if that makes them feel more comfortable with their purchase. If people feel they recieved a good value and quality service, referrals and good reviews are worth more than a single transaction. Not everyone who works commission or real estate is out to empty your pockets, a lot of the time, there are people out there that still have good morals.
@@TheMattLeighton From what ppl have told me, u don't get your hand held at all in real estate. U don't get no training. They say here's your desk.. Go! But yet they wanna take 50% of your commission? Why?
There are brokerages out there that will train you. A common mistake is focusing on commission splits as a new agent. 87% of new agents fail. Find a mentor and training and once you have a client base, maybe think about going solo
@@TheMattLeighton might just be me but I'm selling my house for 139900 built in 2009. The agent says that because I refinanced twice im screwed and I'm not getting one dime plus I still have to come up with $355 for something and pay 1400 in taxes that i'll get back in six weeks
Real estate agents are a scam for the average middle class seller, “ uh here’s the kitchen, uh here’s the living room with new hardwood, uh this is the basement ...” thanks mr or mrs real estate agent, I’ll gladly pay you 6% so you can name to potential buyers what room they are standing in
Sorry you've had such bad real estate agents. Just like any industry, there are many agents that do a poor job and don't represent the industry as a whole
Matt Leighton my agent, my families and friends went through countless realtors and the tv shows that star the buyers all depict the same thing, just don’t see the value for majority of people to use real estate agents with today’s resources and tools available to regular people
I understand. Many people share your view. I know I can't convince you real estate agents are worth it and I won't try. Best of luck with your real estate purchases in the future.
It would really suck to sell 10 houses at low purchase prices. Lol what if the whole year you were only getting paid off of houses in the low 100s. A house for 400k may take a few months to sell but you only make about 5700? You would have to juggle 3-4 houses at one time to make really good money in a quarter year
