What are the Expenses I Need to
Pay to be a Real Estate Agent?

DMS Properties, LLC Residential Real Estate Services is a small, private real estate brokerage company.  We do not charge franchise fees that some companies force their agents to pay.  We also do not charge transaction fees or desk fees to our agents.  We use a commission structure that we believe is fair to our agents and also to the company.  Naturally, there are expenses that every real estate agent much pay during their career, regardless of their company.

Having a real estate career means you are in business for yourself.  Every business owner has expenses.  It doesn’t matter if you make $8,500 or $38,000 or $150,000 in Gross Commission Income (GCI).  The amount of your fixed expenses is going to be essentially the same.  The fixed expenses include, but may not be limited to:

  • MLS Subscription — this is currently about $125 per quarter with Bright MLS.
  • Association Annual Dues (NAR, Maryland Realtors, local board, etc.) — these run about $750 per year and are due in November.
  • Errors & Omissions (E&O) Insurance — it varies by company but can be as high as $400 per year.  Our Company E&O Insurance policy covers all of our agents, so there is no out-of-pocket expenses to you.
  • Business Cards — There are many outlets for these, but you can expect an expense of about $100 for 500 cards.
  • Signs — There are many outlets where you can buy magnetic car signs.  We have company signs that are put on properties that we have listed for sale or rent.
  • Gas and other car expenses — this varies based on your usage.  The mileage is deductible, as is a portion of your automobile insurance.
  • Cell Phone and Data — this varies by carrier and the type of plan.
  • Computer, Printer, Fax — most people already have these set up and it varies based on each person’s program and the cost can be split between personal and business use.
  • EMail and Website — most people have email already and there are many cheap options for websites.
  • Postage — many agents don’t buy postage because they don’t market themselves and their business.
  • Marketing — many agents don’t pay for marketing, although it is possible to spent a small fortune “buying leads” from outside companies.
  • Continuing Education — this can cost up to $450 per 2-year licensing period.

Every business owner runs their business differently.  It seems that many people who start a real estate career and affiliate with a Broker don’t understand that they are running a business.  We try very hard to teach our agents about how to run their business for a successful career.