Hope you find this information below useful. I have much more to share including...
100 QUESTIONS EVERYONE NEEDS TO ASK WHEN INTERVIEWING BROKERS!
How Much Does It Cost To Become A Real Estate Agent In Ontario.
Are you thinking of becoming a Real Estate Agent in Ontario? It is certainly an exciting idea. You will be your own boss(maybe), work your own hours (maybe), get paid for how hard you work, which leaves limitless possibilities.
We will talk about all these aspects, but first, how do you become a real estate agent and how much will it cost before I even make any money, or even know if I am any good at it.
To become a real estate agent in Ontario you must:
A. Have an Ontario Secondary School Diploma or equivalent; OR
B. Be at least 18 years of age, complete the OREA Real Estate College(OREA) Admissions Test and attain a minimum mark of 50%.
If you meet those qualifications you must then take 5 courses as laid out by OREA.
These 3 courses are given regularly in various locations throughout the province. They must be taken in order and you must pass the first course before you move on to the second. And you must move on to the second before you move onto the third etc.
Course 1 - Real Estate as a Professional Career
- Fee: $525 (includes Learning Package)
Course 2 - Land, Structures and Real Estate Trading
- Fee: $545 (includes Learning Package)
Both of these courses can be taken in class, by correspondence or by e-learning for the same price. They will also recommended a specific $100 dollar calculator.(Most people don't use it, don't waste your money.)
Course 3 - The Real Estate Transaction - General and The Residential Real Estate Transaction
- The Real Estate Transaction - General $425
- The Residential Real Estate Transaction $425
Course 4 - T The Commercial Real Estate Transaction
- Fee: $425
These courses can be taken one of two ways:
1) entirely in the classroom (80 hours)
2) half correspondence and half in class(40 hours).
but it must be taken at least part in the classroom with mandatory attendance.
Course 5 - Real Property Law
- Fee: $505
This courses can be taken in class, by correspondence or by e-learning for the same price.
The total course fees for theses courses are $2850.
These courses must be completed with-in 18 months but some have done The first 3 courses in as little as 4 months, depending on course availability and your ability to travel to less popular areas to take the classes. The 5 course system is new so I can not tell you how long it will take to complete all of them.
Once you have completed the courses you must register with your local Real Estate Board (in Toronto-Toronto Real Estate Board-TREB)and the Real Estate Council of Ontario (RECO) and The Canadian Real Estate Association (CREA). You can only register with these organizations through a licensed Brokerage.
The cost to license: (approximately)
$417 – RECO Insurance (which is prorated) and are paid yearly due around August.
$350 – RECO Registration Fee and are paid every other year on your anniversary.
$44 - RECO Continuing education fee and are paid every other year .
$830 - TREB and are paid yearly due around May
$475 CREA and OREA and are paid yearly due around January.
Sub Total: $2 072
Courses and Licensing fees:
Sub Total: $4 922
*Course fees and Licensing fees can change, please use this information as approximate, and confirm the numbers and due dates.
You are not done. There are more costs to consider, as I said early you have to join a Real Estate Brokerage.
Most Real Estate Brokerages charge you something called a desk fee that can range anywhere from $0 a month to $1,500 a month. You may hear of agents that pay something like $18,000 a year in desk fees to their brokerage weather they sell anything or not.
You must also consider the supplies you will need business cards, for sale signs, open house signs, office supplies, a smart phone, a computer, internet, a car(gas)and respectable clothing.
With in the first 2 years you must complete 1 elective course to maintain your license. For a cost of $505, plus your annual fees. Some people do these courses right away to get them over with, and some people work for a year to make a little money and see if they like the profession before they start the second set of courses and fees.
When deciding on a Real Estate Brokerage besides the desk fees you should also consider other factors. What is the commission split? Which means when a property is sold and the commissions are paid how much does the brokerage get and how much does the agent get? Now this can vary, some are 60%/40% meaning the brokerage gets 40% of the commission and it can go up to 90/10 or even 100% for the agent but read the fine print and ask questions. Some of the 60/40 may offer that you don't pay a desk fee. And the 100% may pay a lot for the desk fees. Or there may be transaction fees. Some Brokerages have levels you start at 70/30 then reach a level of selling and change to 80/20 or 90/10. Some have a "cap". Be careful does the "cap" mean you stop paying or does the "cap" mean you just pay less.
You have a choice as an Real Estate Agent, you can work for a brokerage as an independent or you can work for a team. Teams offer certain perks, maybe they will give you leads or guarantee a salary. Some teams, you are building their business and some teams will help you build yours. Some teams it will be like a job with a boss and others are a little more independent.
You should also consider what kind of training does the Brokerage offer and its costs. Some will offer free training and some don't. The courses given buy OREA teach you about Real Estate but they don't teach you customer service and marketing. Some Brokerage offer no training, some offer a lot of training at the beginning but then little or nothing, some offer a lot and some will tell you they offer it, but they really don't. Get some kind of proof, maybe ask to see a class.
Some Real Estate Brokerages will talk to you now and explain their programs and policies, but a lot won't speak to you until you are at least registered for course 3. I recommend you speak to a lot of Brokerages to find out the pros and cons of each. Remember you pay them, to work for them so ask a lot of questions, don't be afraid. For a more info about choosing a brokerage, click to find out a Few New Agent Mistakes.
Hope you find this information useful. I have much more to share including...
100 QUESTIONS EVERYONE NEEDS TO ASK WHEN INTERVIEWING BROKERS!
I hope this answers all you questions. If you have anymore questions please feel free to contact me.
I chose to sign with a Brokerage called Keller Williams if you are interested in finding out about them. Contact me and I will tell you when the next open house is or I will set up a meeting for you. I can even get you into the training classes. Free with no-obligation.
Have a Great Day
Sales Representative,Keller Williams Referred Realty Inc. Brokerage
*Each office is independently owned and operated.*Not intended to solicit buyers or sellers currently under contract.
*Course fees and Licensing fees can change, please use this information as approximate, and confirm the numbers.