You’re considering a career in real estate. In order to pursue a career in real estate all real estate salespeople in Ontario must be employed by a registered real estate brokerage. Every brokerage offers competitive compensation plans and support to new salespeople and this may often vary from brokerage to brokerage. So before you decide to choose a brokerage to work with as a part of your homework align your career goals against what brokerages offer.
Income: You are choosing a career which will offer you compensation on the basis of the work you do and in comparison to any other sales profession the income is competitive. Regardless of the real estate brokerage you choose compensation is usually based on a commission structure – and commission plans can vary, depending on the number of properties sold or leased. Your earnings can also be affected by area, property type, local market conditions, and specific brokerage policies. The income is high in comparison to every other sales career however salespersons are obligated to pay monthly fees and license fees to the brokerage regardless of whether commissions are earned.
Experience: As a newbie it is advised to look for a brokerage that would offer guidance and training sessions needed to support you perform for success. So make sure when you are researching you connect with salespersons, brokers, broker of record for information on the training sessions offered by the brokerage and how do they measure the success of individual performance and the growth prospects.
Finances: Every business venture takes a while to get off the ground. So it is important to understand that; you will not start receiving returns immediately but once you do the rewards will be sufficient. It is hence crucial to set your personal goals and be financially prepared.
Budget: Set a realistic budget to get you through your educational and early career-building process. Base it on the course cost and the total investment required for Salesperson registration in Ontario. Remember that you will not be able to earn any commission until you are registered with the Real Estate Council of Ontario. Time delays must be considered. Once you complete the Pre-registration courses and obtain Salesperson registration, several months may pass before commissions are earned and several more before they are actually received.
Fees: In addition, you must pay RECO a two-year Salesperson registration fee along with the mandatory insurance program premium. If you do not remit the required fees, there is no monetary penalty you just won’t get registered. Approximately 85 per cent of registrants in Ontario are members of local real estate boards. Real estate board dues vary throughout the province. Salespeople may also be responsible for other board services fees. Contact the local board for more information.Click here to view Ontario Real Estate Boards.In addition, brokerages may hold Salespeople accountable for advertising and/or other costs associated with the real estate profession, such as telephone calls, paging services, administration fees relating to listings and transactions, and photocopy/fax services. So here is another reminder to investigate the costs and services you will encounter at different real estate brokerages. Other expenses to consider as well, including vehicle operation and maintenance, personal attire, computer equipment, and electronic communication devices.
Every profession has initial and ongoing fees – real estate is no exception. Budget wisely and carefully as you start your career and at every step along the way. Invest a portion of every dollar you earn in ongoing professional requirements, continuing education, and other career enhancements.