Though I live in Los Angeles, I came across a Craigslist ad for Coldwell Banker real estate office in St. Louis Missouri that said the following.

“A Real Estate Career is not a job. It is a business. You become a licensed professional that is in control of your own inventory and business plan. A real estate professional is an independent contractor who has high goals for a high income. Many of our professionals are currently earning over $100,000 in annual income. You can achieve the very same result.”

Does this sound too good to be true in today’s national real estate market? Keep in mind, I do not have a real estate agent license at all.

Wilson

I would ask them to number 1, define "many"..... number 2, how long have they been in the business, number 3, how many hours do they spend a day working their business, and number 4, how much money do they spend per year to make that income (fees, marketing, etc.)

I know two very good agents in my area who do indeed make six figures...but they also spend close ts $30,000 in marketing, and they've been in the business 8 - 10 years at least and one of them has a degree in marketing from her previous career.

That said, I made a LOT of money last year, (I got licensed in 2007) not six figures, and not even close (though closer to six figures than I ever made in my LIFE...so I guess for me by my standards, I made "close" to 100,000....in a market where the average sales price is often under 200,000. I was lucky to close a few big ones...and have a few good referrals that closed)

It is hard work. Long hours. Constant being on call and being able to think on your feet. It's not easy.

The ad is somewhat correct but I think they made it sound easier than it is...though it may be easier there than here due to property values being so much higher....depending on what part of St Louis you're in...

Believe me, it's not easy but I certainly think it can be done. I may not do it this year but I'm sure I'll break six figures next year.

Coldwell Banker Gundaker has over 2000 agents in the St. Louis area and there are bunches of agents there that make WAY more than 100k a year...I've had several referrals from them over the years and a great group of people.
100k as a brand new agent might be a little difficult to obtain...OK maybe slightly harder than a little difficult but I am sure there are some that will accomplish this.

In my opinion, how much a new agent makes really depends on what they bring to the table in terms of there pre-existing circle of influence (COI).

If several of your best friends are always investing in Real Estate then your going to do significantly better then if everybody you know cannot afford to move out of there parents basement.

It's unlikely a brand new agent is going to make $100k their first year. Sure, a few will, but the vast majority won't; in fact, the vast majority will quit before that year is up.

But can a 2nd, 3rd or 4th year agent make $100k? Of course. Again, most won't, but it's 100% doable.

Very few agents make that kind of money. But, it is because they do not treat their business as a business. Too many agents who say they are "full time" really work part time hours and most agents who say they are "part time" don't work at all. You get out of it what you put into it.

A part time agent in my office covered for one of my closings three weeks ago. I left some cash and a giant box of gourment nuts(as she requested)on her desk. AS of this morning both items are still there. She has not set foot in the office in three weeks.
There is another part timer who has not been in since before thanksgiving.
Neither agent has a made a sale since last summer. You get from this business what you invest. Best wishes!

Around here, without a reasonable explanation, those Licenses would be mailed back to the State Real Estate Commission as abandoned property after 30 days.

That should be a nationwide rule IMO...It will give much more weight to a license..

Vermont,
The sad part is folks still call for her. Guess how easy it is to get her to answer the phone?

Hello Everyone. I greatly appreciate your comments, input, and suggestions about my question here. I opted to use the online email system at this particular Coldwell Banker real estate office to inquire about their local real estate market (in this poor economy), along with how much can a brand new Real Estate Agent could expect to make in their first year working under them. But so far, after waiting about 48 hours, I have not heard anything from them. If I get some worthwhile information from them in the upcoming days, I will report back to this forum.

Thanks a MILLION Everyone!!!

Wilson

I'd like to continue on with another question if that's okay.. :)

I live in Seattle, where the median price is 400k (according to a seattle statistics website)

with that said, in your opinions, how much is reasonable for a 1st year agent to make? what i mean by reasonable is working full time, valid full time, and all. what do you think is a realistic number?

ASSUMING a broker split of 50/50
ASSUMING a co-broke of 3%
ASSUMING there is no desk fee or technology fee or other fee:
ASSUMING there is no franchise fee:

If you sold 12 homes @ 350,000 = 63,000. Then you need to deduct your fees... MLS dues, NAR & state association dues, gas expenses, electronic lockbox key fees, cell phone charges, internet charges, cost of operating a website, business cards, printer ink & paper..... and let's not forget Uncle Sam.

In my opinion, a rookie doing 12 deals in his/her first year is awesome...my first year I think I only got 3 sales under my belt!

A rookie doing 12 deals @ $350k each is also ASSUMING a great deal!

BTW, Perky--I think I also did three deals in my first year. To add more perspective to this, though, I think it was my third year before I made enough money to have to start paying quarterly self employment taxes.

If you were to do the Mike Ferry coaching I think he guarantees it.