A Career in Real Estate ... Historically Speaking
There are all sorts of real estate companies in Maryland (approximately 1,500 or more according to the Maryland Real Estate Commission). Most of the real estate brokerage firms in Maryland are just like DMS Properties, LLC ... Residential Real Estate Services ... relatively small companies that have under 10 licensed real estate agents. Each company has its own business model, fee schedule and commission structure for its agents.
Regardless of company size and business model, it is the actual real estate agents that are the focus. A buyer or seller may choose to work with a large company due to name recognition, but it ultimately comes down to the individual agent and the services they are able to provide. Not every company is a good fit for every agent. We see many agents who are struggling and who may decide to not retain their license because the expenses of being in business are not being offset by the commission income.
There are some interesting statistics about our industry, the agents who hold licenses, and the income that they earn, according to the National Association of Realtors (NAR). Here are some quick numbers:
What this is showing is that the trend in the number of agents holding licenses is now increasing again after the market crash in 2007 to 2010 when many, many people got out of the business. Now it seems that more and more people are becoming licensed again. At the same time, though, there is still a shortage of homes being actively marketed.
The interesting thing about being in business for yourself (and being a real estate agent IS a businesss) is that regardless whether a real estate agent makes $31,670 in GCL or $150,000 in GCL, the amount of most of their fixed expenses are going to be essentially the same! Every business owner runs their business differently, but the fixed expenses include, but are not necessarily limited to:
It seems that many people who get their real estate license and affiliate with a Broker don't understand that they are running a business. The first thing a business owner needs to do is generate a revenue stream. We have come across many agents who don't have any idea about how to generate business and also have no idea what their expenses are for the year.
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Properties, LLC ... Residential Real Estate Services.