Are you considering a career in real estate in North Carolina? Starting a new business venture, such as becoming a real estate broker, comes with its fair share of expenses. It's crucial to familiarize yourself with the costs involved in order to plan and budget effectively. This article will provide you with an overview of the seven essential costs you need to consider before launching your real estate career in North Carolina.
Pre-licensing real estate classes and training
Estimated cost: $479
Before you can sit for your real estate licensing exam, it is mandatory to attend a qualified and accredited real estate school. North Carolina requires in-person coursework, so online classes are not an option. The cost of education can vary from school to school, and you may also need to purchase additional course materials and study guides.
Real estate examination and licensing fees
Estimated cost: $185
To obtain a real estate broker license in North Carolina, you will need to cover the application and exam fees. The application fee is $100, while the exam fee is $64. Additionally, a criminal background check is required, which typically starts at around $20. Keep in mind that the background check cost can vary depending on your previous state of residence.
Real estate broker fees
Estimated cost: $25-$500+/month
As a new real estate agent in North Carolina, you will likely start as a provisional broker. This means that you will be inactive until you apply to activate your license and work under the supervision of a broker-in-charge. While some business expenses, such as photocopies and office supplies, may be covered by your broker, you will also need to pay a desk fee and a percentage of your commissions.
Real estate membership dues
Estimated cost: varies
Membership dues and fees can significantly impact your budget. As a real estate agent, you may be required to join state and local real estate boards, your local Multiple Listing Service, and potentially the National Association of REALTORS®. These memberships often come with monthly fees, which can be paid directly to the association or through your broker.
Business expenses
Estimated cost: varies
Running a real estate business entails various expenses. Some common ones include cell phone and internet bills, office space rental, office supplies, a laptop, and software. Additionally, costs for meetings, lunches, and client gifts should be considered. While your broker might cover some of these expenses, most will likely be your responsibility. It's crucial to factor them into your business start-up cost estimates.
Marketing costs
Estimated cost: $1,000+/year
Marketing expenses play a vital role in establishing your brand as a real estate agent. On average, more than 31 percent of real estate agents spend over $1,000 per year on marketing. Marketing efforts encompass various elements, such as maintaining a professional website (which can cost over $1,500 per year), advertising, business cards, signage, and creating brochures, flyers, and mailers. These expenses cannot be avoided when starting your career in real estate.
Real estate continuing education
Estimated cost: $100-$300+/year
In North Carolina, continued education is essential for maintaining your real estate license throughout your career. You will need to take post-licensing classes to meet licensing requirements and eventually lose your "provisional" status. Additionally, there are special designations available that can help you establish your niche in the market as you progress in your career. Many agents find that investing in continuing education is highly beneficial.
Thinking about embarking on a real estate career in North Carolina? Superior School of Real Estate has a proven track record of helping aspiring agents pass the North Carolina real estate licensing exam on their first attempt. Attend one of our career nights, explore the Superior Plan, and enroll in our 75-hour pre-licensing course (approved by the North Carolina Real Estate Commission) to kick-start your real estate journey.
Remember, planning and budgeting for the costs associated with starting a real estate career is crucial for your long-term success. By understanding these expenses upfront, you can set realistic goals and make informed decisions as you navigate the exciting world of North Carolina real estate.