Some of the 156 agent roles outlined here and here may seem overwhelming. Successful full-time real estate agents are energetic and efficient individuals who can handle a high level of stress while balancing professional responsibilities. The real estate industry should not be defined by those who cut corners. They are the bad apples you can find in any industry. We, at Illinois Star REALTORS®, work with highly qualified specialists. Brokers constantly absorb the stress and chaos of every real estate transaction, so their clients don’t have to. It’s one of the reasons why 90% of newly licensed real estate agents fail within their first year. The workload is intense.

Expired listing.

Brokers are self-employed individuals who are responsible for their own business expenses. REALTORS® have a lot of responsibility, but they also incur a lot of expenses. People may think agents are getting rich quick when they see commissions. After expenses and taxes, the average real estate broker earns under $50,000 annually. The income of a REALTOR® is one of the most misunderstood. What you see on TV is not reality. The stereotypical real estate agent drives a luxury automobile, spends weekends on a yacht, and occasionally shows up at work to clinch a major deal and get a hefty paycheck. After 33 years in the real estate business, I have yet to encounter this elusive agent. It’s a myth.

How much is your home worth?

Real estate brokers’ commission checks are used to fund their business, pay all taxes, and keep their licenses active. Their bank accounts typically see only a fraction of that commission. Here is a typical broker cost breakdown: Brokerage fees, Multiple Listing Service fees, Local, State, and National Association of REALTORS® fees, Errors and Omissions Insurance, Business Insurance, Liability Insurance, Health Insurance, Automobile Insurance and Maintenance, State Licensing Fees, advertising, appointment service charges, Website maintenance, salaries of assistants, yard sign installation services, professional photography, office supplies, key lock boxes, mandatory continuing education, legal fees, accounting fees, Federal and State taxes, social security, and self-employment tax.

For Sale by Owner.

A real estate broker’s job is demanding and stressful. Many talented individuals try to get into real estate because they believe it is easy money. The reality is that real estate can be a harsh business flooded with competition. The average net income is not enough to keep people in the real estate business. 10% of new licensees survive their first year in business. The survivors hang on because they love their job and they’ve been successful. They love assisting clients in achieving their goals. It can be a rewarding career, but it is not easy. Please remember that real estate agents are humans, just like you. Their employment entails a lot of responsibility. Agents often work 12 to 14-hour days, 7 days a week, for months without compensation.

Home selling process.

This is a difficult and often misunderstood job. Unless you’ve dealt with a REALTOR® face-to-face, you may not realize how unique their job is. Our local MLS (MRED) currently has 44,762 member brokers in Northern Illinois. We closed 9,069 properties in the Northern Illinois area last month. Each transaction has two sides, so around 18,138 brokers were involved in closings last month. For every agent that had one sale last month, there are 26,624 agents without one. According to the National Association of REALTORS®, 90% of new brokers fail within their first year. This statistic is startling, but not surprising when you consider the cost of being a broker, the competitive market, and the stress of the work. It’s not for everyone, but we salute those who succeed as real estate brokers. We are a talented bunch! Despite these hurdles, becoming a real estate agent is incredibly rewarding. It’s a wild job, but the perks of being an agent outweigh the cons. The Illinois Star REALTORS® have a lot on their plates every single day.