I assume that people have to buy books etc and study to pass the test. So most of the cost is already paid so doing the test is the sensible thing to do.
The "it is a bad career move" is only become know in the last few months so the pipeline has to be flushed
The qualifications to become a Calif Real Estate agent/broker :
Conditional License (18 Months) - 1 RE Principles course & pass the RE Exam
Salesperson License (4 years) - 3 RE classes including Principles & RE Exam.
Broker License - 8 RE courses + 104 hours RE experience (or B.A. Degree) + Broker Exam.
Cost at a local California community college: $26 per unit (or $78 per 3 unit class) + books + parking + madatory student fees = About $150 total per class.
RE Salesperson exam (150 ques) $60 + $97 for RE Salesperson license.
Overall, California school fees are very cheap in comparison to other states. But as has been mentioned, low barriers to entry. Still, to complete the courses it takes time because most schools are on a semester system, 16 weeks. If a person were tryiing to get a Salesperson license and started on his career path at the height of the boom last year they would have completed their course work within the year. So there's still some trailing interest at the moment to complete the courses and pass the exam.
This rules out the private crash RE schools that jam everything in a couple of weeks and cost considerably more.
Of course, past stories of instant riches still have their influence and create additional inertia.
before you overcommit to a deadend future, let me share with you an opportunity I found on my car (Tanta, you might want to check it out also -- much better upside than sorting socks at the local Goodwill store)...
BACK:
Offandrunning.blah.blah
The Nation's
Greatest Travel Bargain
1) Deep discounts on Stays at Fabulous Luxury Resorts Condos Worldwide.
2) 50% Off Lodging at Many of the nation's Best Hotels.
3) For RVers Deluxe Campsites for $10 per night at Good neighbor Campgrounds.
4) Huge Savings at Gorgeous Golf Resorts.
5) 20 discount membership card over 25 bonus vacation.
6) $100 Gas Card.
7) Discounts in over a 1000 Restaurants.
8) Much Much More
Plus Unbelievable Bargains On:
Cruises, Packages Tour, Meals, Airfare and Car Rentals.
This Program is usually Sold Exclusively by Resort Properties for $2500 and more.
OUR PRICE IS ONLY $1295
You Receive $15000 in value
BONUS: FREE Carnival Cruise With Purchase
Call Now!
HUGE INCOME: Our Directors Make$1000 on each sale and although results vary can easily earn $2000-$5000 or more each week with our proven system working only a few hours from home
.(THIS IS NOT MLM)
The Demand for this product is unprecedented.
Ps Register at the website and view the movie and receive a 3 or 4 day cruise just for taking a look
1-800-XXX-XXXX
[ed note: All typos and errors have been faithfully reproduced.]
Calling... 2:15am PST... as per Call Now! instructions...
"Hello, greeting on this fine, fine day. Leave a message. Thank you very much."
Dang, too bad they don't have 24 hour hotline. They just lost $1000.
I'm a little confused by it, but I think what it is saying is that I can become wealthy through consumption?
I should have started a business selling the answers to the RE exams, but I guess I'm too late to the party now. Story of my life: most likely to be able to spell "entrepreneur," least likely to be able to do anything about it.
doc, I am touched that you were thinking of me and my career woes. I have to tell you, though, that I wouldn't take a job that requires returning phone calls for all the money in M3 plus a full bottle of Percocet. If I have learned anything over the course of a long and misspent life, it is that returning phone calls only encourages them.
Every performance review I've ever had has gone something like this:
Boss: You're a huge asset to this company and we love you, but people complain that you don't return calls.
Tanta: You keep hiring 22-year-old temps to replace retiring experts. They can't get through their first Starbucks of the day without calling me twice to ask questions like "Would it really be a problem if one of the borrowers forgot to sign the note?" How do you expect me to bang my head on the desk and return calls at the same time?
Boss: You multi-task. I get a bigger bonus. What's not to like about that?
One home sale per agent per year means one battered and grizzled old mortgage vet like me per 50 screwed-up or fraudulent loans involving an inexperienced or desperate agent per week. I say this only because I want you bond investors to be as miserable as I am. They didn't make me a risk manager in order to improve anybody else's day, by jimminy.
The rags to riches stories keep the flow of applicants. I had an acquaintance that didn't perform well but made a good retirement living teaching RE classes to the hopefulls.
The owner of that large office told me every year he hires 10-15 sales people in hopes that 1 will be a keeper.
In an office of 25 sales people, 2-3 are doing well, 4-6 are making a living, the rest are in the wrong occupation.
One sale per agent per year on average? Hmmm. Pulling some semi-random numbers out of my ear: Median home price in CA around $250,000, typical commission 5% spilt between selling and listing agent $6250 each, minus expenses of selling house, feeding broker, etc. comes to a really good income...for somebody else.
I like jiminey too. And Lama's picture of the dispersion --not too equal.
This 1.5 sales/agent average statistic has me wondering about the profile (shouldn't all averages have this effect --it is the wrapper on the candy bar people, let's rip it off!) [Ok, there may be more sophisticated means to drop the drawers on this item (we could tease the clothes of this baby) without sounding every horn in the orchestra (nuanced), but I'll be satisfied with just a little taste of curiosity, you?]
Here's a nibble: how many of those "agents" (Jeeze I love this term!) are motivated to obtain this licence (another beauty) primarily to avoid the predation of other agents are licenced to perform on that first house purchase?
Boss: You're a huge asset to this company and we love you, but people complain that you don't return calls.
I make outbound calls all day - prospecting & setting up appointments. Always get buyers VM and leave a polite message & callback instructions (if they so choose).
Good thing they rarely do - how else would I find all the time to post witty comments?
Sounds like a good career move to me. Where to do I sign up?
I agree with shark - now's the time if you are ever going to do it.
'Say What?' you say. 'At the front end of a possible crash?'
I say 'Yup - best possible time, couldn't be better.'
My logic is this: Most people make career changes when it's obvious to everyone it's a good move. And everyone & their nephew is doing the same thing. Typically just prior to the top of a boom.
Then the tide turns and most get crushed. Or many at least.
The WORST possible time to enter the business was about 2-3 years ago. Just enough time in the business to learn sloppy habits, get used to easy money (and probably over-extended) and not enough time to make life long career contacts or learn the necessary survival skills to make it through the crash.
They needed to be in position, with plenty of experience & contacts well PRIOR to the boom taking off & not scrambling to elbow themselves some space with everyone else at the peak. Too late then.
There will be a recovery someday - it will take a few years, maybe many years, before a full rebound. That would give the newbie time to get an education, bloody the nose a bit, make contacts and because it's a down market maybe even learn some useful skills & earn respect from peers for making it through tough times.
When the next up beat comes you make serious money due to the experience, contacts & positioning.
You could argue that waiting a few years would be better. Maybe. If we were sure the down beat was going to last that long. But the risk is waiting too long & not getting in on the next up beat.
Plus there are so many classes available now due to the demand it would be easy to find one that works with your current schedules. In the middle of he bust there will be far fewer options as classes & schools shift to the next big thing (also too late for that).
So if your serious - I'd start looking into it now. Just don't expect it to be fast easy money. It has to be a long term career decision and if you have the aptitude, a good one.
I've always said 'busts make millionaires, not booms'. It applies to RE too.
Sounds like a good career move to me. Where to do I sign up?
You can sign up here. Be your own boss! Work your own hours!
Have fun.
How many homes are sold in CA per year? Is it more than onme home per agent?
bob, there were 680,000 homes and condos sold in California last year. So that is about 1.4 homes per agent in 2005.
For 2006 it looks like the ratio will be about one home per agent.
Best Wishes.
I assume that people have to buy books etc and study to pass the test. So most of the cost is already paid so doing the test is the sensible thing to do.
The "it is a bad career move" is only become know in the last few months so the pipeline has to be flushed
The qualifications to become a Calif Real Estate agent/broker :
Conditional License (18 Months) - 1 RE Principles course & pass the RE Exam
Salesperson License (4 years) - 3 RE classes including Principles & RE Exam.
Broker License - 8 RE courses + 104 hours RE experience (or B.A. Degree) + Broker Exam.
Cost at a local California community college: $26 per unit (or $78 per 3 unit class) + books + parking + madatory student fees = About $150 total per class.
RE Salesperson exam (150 ques) $60 + $97 for RE Salesperson license.
Broker's exam (200 ques) $95 + Broker's license $110.
Overall, California school fees are very cheap in comparison to other states. But as has been mentioned, low barriers to entry. Still, to complete the courses it takes time because most schools are on a semester system, 16 weeks. If a person were tryiing to get a Salesperson license and started on his career path at the height of the boom last year they would have completed their course work within the year. So there's still some trailing interest at the moment to complete the courses and pass the exam.
This rules out the private crash RE schools that jam everything in a couple of weeks and cost considerably more.
Of course, past stories of instant riches still have their influence and create additional inertia.
sharkbait,
before you overcommit to a deadend future, let me share with you an opportunity I found on my car (Tanta, you might want to check it out also -- much better upside than sorting socks at the local Goodwill store)...
FRONT:
Save 50% to 70%
On Brand Name Children Clothing
Sorry. Page not found.
Saving Code mk1442
$1000 A DAY
Returning Phone calls
415-555-5555
BACK:
Offandrunning.blah.blah
The Nation's
Greatest Travel Bargain
1) Deep discounts on Stays at Fabulous Luxury Resorts Condos Worldwide.
2) 50% Off Lodging at Many of the nation's Best Hotels.
3) For RVers Deluxe Campsites for $10 per night at Good neighbor Campgrounds.
4) Huge Savings at Gorgeous Golf Resorts.
5) 20 discount membership card over 25 bonus vacation.
6) $100 Gas Card.
7) Discounts in over a 1000 Restaurants.
8) Much Much More
Plus Unbelievable Bargains On:
Cruises, Packages Tour, Meals, Airfare and Car Rentals.
This Program is usually Sold Exclusively by Resort Properties for $2500 and more.
OUR PRICE IS ONLY $1295
You Receive $15000 in value
BONUS: FREE Carnival Cruise With Purchase
Call Now!
HUGE INCOME: Our Directors Make$1000 on each sale and although results vary can easily earn $2000-$5000 or more each week with our proven system working only a few hours from home
.(THIS IS NOT MLM)
The Demand for this product is unprecedented.
Ps Register at the website and view the movie and receive a 3 or 4 day cruise just for taking a look
1-800-XXX-XXXX
[ed note: All typos and errors have been faithfully reproduced.]
Calling... 2:15am PST... as per Call Now! instructions...
"Hello, greeting on this fine, fine day. Leave a message. Thank you very much."
Dang, too bad they don't have 24 hour hotline. They just lost $1000.
I'm a little confused by it, but I think what it is saying is that I can become wealthy through consumption?
I should have started a business selling the answers to the RE exams, but I guess I'm too late to the party now. Story of my life: most likely to be able to spell "entrepreneur," least likely to be able to do anything about it.
doc, I am touched that you were thinking of me and my career woes. I have to tell you, though, that I wouldn't take a job that requires returning phone calls for all the money in M3 plus a full bottle of Percocet. If I have learned anything over the course of a long and misspent life, it is that returning phone calls only encourages them.
Every performance review I've ever had has gone something like this:
Boss: You're a huge asset to this company and we love you, but people complain that you don't return calls.
Tanta: You keep hiring 22-year-old temps to replace retiring experts. They can't get through their first Starbucks of the day without calling me twice to ask questions like "Would it really be a problem if one of the borrowers forgot to sign the note?" How do you expect me to bang my head on the desk and return calls at the same time?
Boss: You multi-task. I get a bigger bonus. What's not to like about that?
One home sale per agent per year means one battered and grizzled old mortgage vet like me per 50 screwed-up or fraudulent loans involving an inexperienced or desperate agent per week. I say this only because I want you bond investors to be as miserable as I am. They didn't make me a risk manager in order to improve anybody else's day, by jimminy.
The rags to riches stories keep the flow of applicants. I had an acquaintance that didn't perform well but made a good retirement living teaching RE classes to the hopefulls.
The owner of that large office told me every year he hires 10-15 sales people in hopes that 1 will be a keeper.
In an office of 25 sales people, 2-3 are doing well, 4-6 are making a living, the rest are in the wrong occupation.
Maybe we could teach them some basic military type skills and send them in to replace the National Guard Units in Iraq.
We'll tell them that they can get 9% commission on every home sale in Baghdad- they just have to clean up the neighborhood first.
Russell
One sale per agent per year on average? Hmmm. Pulling some semi-random numbers out of my ear: Median home price in CA around $250,000, typical commission 5% spilt between selling and listing agent $6250 each, minus expenses of selling house, feeding broker, etc. comes to a really good income...for somebody else.
I like jiminey too. And Lama's picture of the dispersion --not too equal.
This 1.5 sales/agent average statistic has me wondering about the profile (shouldn't all averages have this effect --it is the wrapper on the candy bar people, let's rip it off!) [Ok, there may be more sophisticated means to drop the drawers on this item (we could tease the clothes of this baby) without sounding every horn in the orchestra (nuanced), but I'll be satisfied with just a little taste of curiosity, you?]
Here's a nibble: how many of those "agents" (Jeeze I love this term!) are motivated to obtain this licence (another beauty) primarily to avoid the predation of other agents are licenced to perform on that first house purchase?
Boss: You're a huge asset to this company and we love you, but people complain that you don't return calls.
I make outbound calls all day - prospecting & setting up appointments. Always get buyers VM and leave a polite message & callback instructions (if they so choose).
Good thing they rarely do - how else would I find all the time to post witty comments?
Now back to the phones!
Sounds like a good career move to me. Where to do I sign up?
I agree with shark - now's the time if you are ever going to do it.
'Say What?' you say. 'At the front end of a possible crash?'
I say 'Yup - best possible time, couldn't be better.'
My logic is this: Most people make career changes when it's obvious to everyone it's a good move. And everyone & their nephew is doing the same thing. Typically just prior to the top of a boom.
Then the tide turns and most get crushed. Or many at least.
The WORST possible time to enter the business was about 2-3 years ago. Just enough time in the business to learn sloppy habits, get used to easy money (and probably over-extended) and not enough time to make life long career contacts or learn the necessary survival skills to make it through the crash.
They needed to be in position, with plenty of experience & contacts well PRIOR to the boom taking off & not scrambling to elbow themselves some space with everyone else at the peak. Too late then.
There will be a recovery someday - it will take a few years, maybe many years, before a full rebound. That would give the newbie time to get an education, bloody the nose a bit, make contacts and because it's a down market maybe even learn some useful skills & earn respect from peers for making it through tough times.
When the next up beat comes you make serious money due to the experience, contacts & positioning.
You could argue that waiting a few years would be better. Maybe. If we were sure the down beat was going to last that long. But the risk is waiting too long & not getting in on the next up beat.
Plus there are so many classes available now due to the demand it would be easy to find one that works with your current schedules. In the middle of he bust there will be far fewer options as classes & schools shift to the next big thing (also too late for that).
So if your serious - I'd start looking into it now. Just don't expect it to be fast easy money. It has to be a long term career decision and if you have the aptitude, a good one.
I've always said 'busts make millionaires, not booms'. It applies to RE too.
JMHO.
I don't know, that fall in Salesmen is starting to look consistant.
Not all licensees sell real estate. Some manage property, some arrange loans etc...