Real Estate Agent VS. New Home Sales Consultant (Comparing Income, Benefits, Labor, Time)

Real Estate Agent VS. New Home Sales Consultant (Comparing Income, Benefits, Labor, Time)

real estate agent new home sales
consultant what’s the difference all that and more coming up on The
Jeremy Kerste Show stay tuned what’s up guys welcome back
to The Jeremy Kersten Show where every episode we show you something new on
business entrepreneurship investing and other financial things today we’re going
to be talking about the real estate agent versus the new home sales
consultant what’s the difference what’s the pay difference what are the hours
like and I don’t know maybe it’ll help you make a decision on a path that you
know you might have never knew you we’re gonna take before I know it was
definitely an eye-opening experience for me and maybe I can help you make a
decision on your own if you’re new to the channel go ahead and hit that
subscribe button and the notification bill so you can be notified every time
we upload a new video and go ahead and hit that like button help spread the
message to other people and with that being said let’s go ahead and get
started guys okay so the first thing that we wanted I guess going to is the
time the time required of you at your job okay now here’s the big deal real
estate agents can do whatever they like okay they’re an independent contractor
so let’s try IND they’re independent they can work whenever they like so
their time is flexible okay so if you’re stay-at-home mom or
you’re young just starting your business I totally misspelled that flexible okay
if if you have a lot of time to build the career I think a real estate agent
is a pretty good way to go because the upside is larger but I’ll get into all
that stuff here in a second so you have a flexible time yeah you’re doing some
open houses on weekends so you know we’ll put some weekends
okay if you’re really hustling it working hard you probably work in let’s
say every weekend right but again it’s totally optional opt baby optional
you’re not required to again you do whatever you like your 1099 that means
that you’re getting paid with no taxes okay so the you will be taxed don’t
don’t don’t misunderstand me but as you get paid you’re reliable for your own
taxes so alright responsible for taxes okay responsible for taxes okay now how
much do you get paid well everyone thinks that a real estate agent gets 6%
that’s something you typically hear it’s like oh I gotta I gotta pay the agent
six percent to sell my house well that’s true
but you’re forgetting or you might be forgetting that they’re gonna split that
so that’s six percent they’re gonna be splitting that with the buyer’s agent
okay the person that brought the buyer to buy the house that you’re selling
this the agent has to split that typically in half so then you get down
to three percent okay so three percent is a pretty typical pay okay
but pump the brakes you got brokers fees office fees transaction fees MLS dues
all this other stuff okay a lot of things not to mention marketing god I
don’t even know I mean you can you can literally just dump dump dump thousands
of dollars in the marketing okay so you got you look look let me slow down here
you got your three percent now obviously this changes according to which broker
that you work for okay what I’m about to explain but we’re gonna go for the
simplicity of this video we’re going to stick to the average or we’re gonna
stick to the most typical okay so don’t go leaving a bunch of comments saying oh
I only pay 100 in transaction fees and
blah-blah-blah-blah-blah I get that there’s a lot of brokers out there that
do that which I do recommend if you’re gonna be an agent that is the way to go
because these larger suits Coldwell Banker and Keller Williams and Remax and
century 21 and all that stuff it’s a very common thing for the broker to take
half that’s right 50% I’ll just go with Coldwell Banker and what I know that
they do okay they want to take 50% I was working for a minute for a guy he wanted
to take 60% obviously I didn’t stay there very long
so that 3% quickly becomes 1.5 okay so now you’re at 1.5 you still gotta take
the taxes out okay and let me start over here so you’re at the 1.5 okay – your
taxes – your advertising which is huge I mean how are you supposed to find buyers
and sellers with no advertising okay so you’re one in 1.5 percent of a
transaction – taxes and again or let me let me let me say that I’m talking about
residential real estate okay I mean I hope you already caught onto that I’m
not talking about commercial where the numbers are bigger and all that kind of
stuff we’re talking about the real estate let me help this family buy a new
home agent okay so there we are at one and a half percent – taxes – advertising
and then there’s a lot of other stuff I mean I you know this doesn’t even clued
again like brokers fees and that that various MLS fees you’re talking about a
couple hundred dollars a month in some cases for office fees MLS dues which is
like the the listing service you got to pay monthly dues on that there’s a thing
called a Supra that goes on the door that for you to have access to that
there’s a monthly payment for that so it’s money money money money all the
time now if you’re making great money sure I
get it you can that pays for that okay but still let me just give you what is
true okay and let me let me go ahead and put here
Watts up top my head no benefits no benefits okay and what we’re talking
about benefits I’m talking about medical vision / dental 401k none you get none
I should just erase it because you don’t even get that stuff okay so no benefits
in most cases I’m sure there’s a broker that biases people his stuff that’s
great you gotta do all your own advertising mmm
see do I have pretty much everything there that I wanted to cover I think so
if not we’ll come back in a sec now oh right here again it kind of goes with
the advertising is the marketing and the inventory okay so well right here no
inventory you’re not I’ll explain this in a second but let me just put it here
no inventory okay which means that you don’t just have a pocket full of homes
to sell given to you they’re not just here go sell it now going over to new
home sales consultant this is a job that I’ll probably make a whole nother video
on in and of itself because it’s such a diamond in the rough in my opinion
anyways I think it’s perfect okay I mean it it’s not perfect and he again get to
that in a second but let’s just go into it now a new home sales consultant first
off you are an employee okay so you’re not a 1099 they’re an employee and
you’re getting paid a w-2 okay so you don’t have to worry about
the taxes because you’re gonna fill out that form at the beginning of the year
tell Uncle Sam how much you want to give them if you know anything about taxes
you should be taking as much as you can home
it’s an idea for video there and yeah that’s that that’s that’s how you get
paid you do get the benefits when you work for a home builder okay
in most cases okay I like I said I know sometimes things can be different but
you give it if it’s so you get in a lot of cases great Medicare you get great
vision you get great dental and a lot of times you get 401k you get some matching
on your contributions up to could be three five six percent so we’ll write
you know three to six percent matching which is pretty awesome okay if you’re
gonna make a career out of this and you got a family to support you got kids man
let me tell you it was so awesome when I was making a lot of money in new home
sales and I just wrote a check which wasn’t even a whole lot because I had
you know all these benefits and I got my daughter a new mouth on braces I mean
that feeling is awesome had I been a broke real estate agent trying to start
my career trying to hustle and put on my money that just that wouldn’t have
happened no oh thank you I just remember something time it takes a lot of time to
build up this real estate agent career every real estate agent it’s gonna tell
you that I mean I’m not I’m not trying to diminish it or anything like that but
they’re gonna say yeah it’s gonna take some times we’re gonna take many years
to really get that ball going right to really be able to do the the six figures
and I’ll tell you what I’m actually gonna go ahead and post on right now as
I’m speaking this list where talks about the you know the different incomes and
how long it takes per the years for you to get that average income for me to be
able to make the money that I’m trying to make being the you know I want I want
to be the part the primary breadwinner of my house I want to provide nice
things for my family my two kids that I have yeah I’m looking for the most money
now not in five years not 10 years I want
something now okay and I’ll take with what I have now and I’ll build from
there now new home sales okay your time just what you have to
work weekends it is a mandatory thing so that’s one of the biggest things that is
a drawback in a deal breaker for a lot of people mandatory weekends and you’re
like dude Jeremy seriously Saturday and Sunday yes both Saturday
and Sunday you’re sitting in that model home so if that sounds like that sucks
and you can’t do it maybe should go be a real estate agent
okay you know work work your regular job and go show some homes on the weekend
that’s fine okay so you’re gonna be working every single weekend that’s a
must your hours are anywhere from ten to six
to ten to seven some companies do just this some people some companies will do
only ten to seven and then some switch back and forth according to the time of
the year daylight savings time okay Sunday’s typically twelve to close okay
which is six or seven let’s see responsible for taxes we already kind of
covered that right there now the pay the good part here’s the
deal I said that in most cases a lot of cases obviously not all you get paid
1.5% on the real estate agent side okay new home sales in the Houston market in
u-ace I can’t speak for all the different markets but in the Houston
Texas market the average new home sales person is getting paid 2% that’s 2% on
again kind of changes company to company but in most cases the total purchase
price okay so two percent of the total purchase price alright so and that’s a big difference if you
think about it so if you sell 10 million in real estate
10 million okay you’re either gonna make 150 K over here we’re gonna make 200 K
over here okay 50 K is fair amount of difference okay and then remember all of
these fees and stuff it just drives me nuts all the advertising kay here’s the
beauty 2% of a total purchase price and some companies pay 2.25 I’ve seen some
some competition lately of talks some different employers that pay 2.25 I’ve
talked to some that pay 2 and a half and then like my lucky self I do get paid 3%
for the company that I work for it so and that’s rare so I’m grateful for that
okay so either way new home sales people per transaction on average make more
than the real estate agent per on the transactions now here’s another thing the the inventory plentiful okay you’ve
got inventory four days the new home builder is going to be giving you I
don’t know anywhere from two to six homes at any given time
two to six homes an any given time to sell okay this is going to be completed
homes or homes they’re building for the purpose of just quick buy and you know
sell for you and it’s it’s it’s awesome I mean you got as soon as you sell one
the smart thing to do is just start another one so as its building a
customer come saying hey we like this but it uh boom sell it if it’s complete
you get paid fast and you have a company behind you like a whole business
you that is going to be dealing with the title chasing down the title stuff
making sure that things close on time you have a mortgage company a lot of
cases that are helping with the loans it just it all you got to do sell it I mean
how hard is it show up do your job do the paperwork sell the home which you
know most cases if the products good you’re a likable person you’re gonna
sell the house okay you always have something to sell even if you don’t okay
you can sell dirt and what I mean by that is you’ve got a bunch of Lots
you’ve got a bunch of Lots that could be 60 by 135 71 3581 you know forty
whatever you’ve got land and the subdivided land for someone to come in
and pick a floor plan pick an option put it on there it’s very simple this my
friends you are driving all around the city you’re going to resells you’re
having to negotiate you know fixes on an existing home
you’re having to negotiate you know just all kinds of stuff over here new home
sales you’re selling something that has a warranty I’m kind of running out of
space here right but a warranty it’s a brand new product you don’t have to mess
with any of that other stuff over here you just show up at your given time do
your job make the company money and you’re gonna make it pretty nice living
at it as well so you know I don’t know both of them have their pros and cons
the you know the biggest upside obviously is the real estate agent is
that you can make your you can build the business bigger and bigger and bigger
and bigger over the years you can eventually get sales people underneath
you kind of start actually operating as a business as that business machine and
new home sales you can’t okay new home sales you’ve got your just that
your sales person to go in and do your thing you’ve got a neighborhood and if
the community that you have is great awesome you’re gonna do well if the
community that you have is no bueno guess what you’re gonna suffer
financially and there’s nothing that you can really do about that and that’s one
of the most frustrating parts about new home sales is that if your community is
no good you can watch your coworker working for the same company make twice
as much money as you it’s a bummer okay it’s a bummer real estate agents you can
go anywhere right yeah I mean the the city or the state is your playground you
can sell any property so you know finding something that matches that
buyer is probably not gonna be as hard on this side but you’ve got you know
like I said you got business coming to you in the model home you sit there you
do me you don’t just sit there obviously you got to do your part in
marketing reaching out to Realtors and trying to drive business and being
active in the community blah blah blah blah blah okay but at the most part for
the most part you’ve got a company that’s pumping hundreds of thousands if
not millions of dollars building up that brand for the new home construction
company versus your real estate agent you’re over here dumping money on
Facebook ads and signage around your city in your town praying to God
hopefully this works right it takes so long to build this up that my best
advice personal advice coming from experience
is don’t jump into this unless you have something else to keanu keep you afloat
I went from new home sales into a real estate agent terrible idea I mean I went
broke fast because it’s just it’s just not the same thing you can be brand new
kid out of college never done real estate in your life go into new home
sales and instantly go make six figures a year promise you and if you’re not
you’re doing it wrong somebody told me that when I first start started and they
were absolutely 100 percent correct they said Jeremy if you’re not making 90 and
new home sales business you’re doing it wrong and you’re probably gonna get
fired pretty shortly and it’s true anybody who’s not making
six figures doesn’t last too long in this so you can make anywhere I’m say
from one to two to three one one twenty five why you know is is kind of like
sort of that rolling average I know people that you know I’ve done 250 I
know people have done three the guy that I’ve met through different you know new
home sales events he’s had a couple years where he was doing four and five
hundred thousand dollars and he just shows up five days a week does his job
goes home at six o’clock five hundred thousand dollars
the dude doesn’t even have a college degree you don’t need one okay so
hopefully this sparks some interest for some of you like wow I know what I’m
doing now whether it’s this or this hey best of luck to you and you got any
questions leave them down in the comments below I’ll try to answer them
if you enjoyed this video give it a good thumbs up subscribe to the channel if
you haven’t already because I’ll be talking about more stuff like this to
kind of get the idea you know the idea is rolling so hope you
enjoyed it and till next time guys take care thanks bye

10 thoughts on “Real Estate Agent VS. New Home Sales Consultant (Comparing Income, Benefits, Labor, Time)

  1. Great information! Thanks for sharing!

  2. What is the name of the builder you work for? Who do you recommend to work for in Plano Texas?

  3. Great points Jeremy!

  4. Lennar Employee here! We have hundreds of homes to sell

  5. I’ve recently found an interest in both of these and glad I can say this info has helped me decide and see the pros and cons, thank you. 👍🏼

  6. You have some great points. I work for a large builder in Florida and it is exactly as you’ve said. My partner and I are responsible for selling 610 homes over the next five years. My average home is $350k….if we split that in half and based my commission on 1.5% I’m banking $320k / yr. I’ve actually been toying with the idea of leaving though…simply because of time flexibility BUT when I stop to really think about it, my general agent friends are having a pretty tough time competing against my brand new construction. And with the amount of time I’d have to put in to make what I’m making now…there really wouldn’t be any flexibility to my schedule at all. Yeah I have to work Saturday…so what! Party doesn’t start till dark anyway 😉

    Good Stuff Jeremy…I’ll give you a follow 👍🏾

  7. Hello Jeremy,
    My name is Kay and I’ve been a barber for 11 years. I decided in 2013 to pay full price and take the Real Estate agent course at Champions Forest in Houston, Tx! I finished all courses in 2014 took my sales exam and failed! 😔 Well I just mailed off $205 again last week to TREC to get my application approved to take it again yeeessss 5 years later!

    Well just TODAY something came over me as I live in Atascocita, Tx outside of Houston and I drove by Perry homes and even went inside to talk to the sales consultant, as I was waiting and looking around the model home I noticed the sales person was like an agent!

    I walked out went inside my car and prayed to God to give me a sign if I should proceed with becoming a Real Estate agent or an New gone sales consultant! Here is where you come in the picture I JUST FINISHED THIS VIDEO and you have given me the ultimate decision to choose New hone sales consultant!! Thank you!!!!

    My only problem is the last 11 years of my career has been a barber 💈 I also have a Psychology degree but according to your video you said it doesn’t matter! So my question to you is where do I begin the process to apply for a New home sales consultant job? Do I use a resume? What are your suggestions to getting hired?
    P.S. I’m still a barber but my passion is REAL ESTATE 🏡 and I’m willing to give it up to work as a new home sales consultant !!!

    Thanks hope to hear from you soon!!

  8. Whoa ! This puts lots into perspective, thanks for that. I’m hoping to move up within a builder, and my first step is going to an interview for a Host position here in Houston. If all goes well, hopefully this is the job for me in which I can later pursue a career as a sales consultant or any other branch/department of the company. I’ve been a stay at home home for over 6 years and I kid you not when I say….I’m SCARED!!!! But I’m going to that interview rain or shine. Wish me luck!!

  9. I want to become a new home sales consultant but not sure where to start please help.

  10. I've been in sales for over 20 years. I've heard my fair share of fluff and hot air. You're actually right on the button with your answers to peoples' replies here… and you actually give really good advice. I've been helping a few friends find new home sales jobs… and what you're saying below is spot on. Good job!

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