So you think you can sell real estate?

Q: I have been thinking about getting my real estate license for several years now and would very much like to become an agent. My question is regarding the career outlook for agents in the north Georgia area.

I'm not even sure what an average agent (not that I plan to be average!) can expect to make in a year! What are the responsibilities of being a great agent? Should I make plans to transition into this career?

A: According to the Department of Labor, the median income for a real estate agent is about $39,760 per year, as of May 2006. The middle 50 percent earn between $26,790 and $65,270 annually, and the top 10 percent earn around $111,500 per year.

Of course, superstar agents can earn several times that top number.

If you're a real good real estate agent, the money will be there for you. But before you take the leap, you should learn everything you can about being a great real estate agent.

Top agents are always on-call for their clients. It's a business where you have to be there 24 hours a day, seven days a week, 365 days a year -- or someone else will walk away with your business. It's tough to take a vacation, and you most certainly have to work weekends.

Good agents are detail-minded. There's a lot of paperwork to stay on top of, and if you mess up, you could wind up hurting your buyers and sellers where it really counts -- in their wallet.

There's a lot of follow-up: You have to learn how to tell the difference between a real buyer or seller and someone who's just playing around with the idea -- or you'll waste your time on folks from whom you'll never earn a commission.

You should also learn about what's happening in your local marketplace. Try to find a broker who is willing to take you into the fold and train you.

It's one thing to pass the agent's licensing exam, and it's another to become a full-time, working agent who is making a living.

For more information, start at the National Association of Realtors' Web site, www.realtor.org, and then go online to the Bureau of Labor Statistics' site, http://stats.bls.gov/oco/ocos120.htm#earnings.

Q: I've been reading your book, "100 Questions Every First-Time Home Buyer Should Ask." I'm curious about something: Is it beneficial to have an agent for a newly built home or should I negotiate directly myself? I'm usually quite good at negotiating. What are the benefits?

A: You should absolutely hire an agent to help you negotiate with the builder. It won't cost you any more, and ideally, the agent is well-acquainted with how the developer operates, the deals he/she has given other buyers recently, and what other, similar, developers are offering. In addition, the agent should be more familiar with the terms and conditions of a new construction contract.

But in addition to an agent, you should hire your own real estate attorney to go through the contract and explain what's really going on there. That's particularly true now, when so many builders are having difficulties selling their developments.

For example, you wouldn't want to buy in a development that is only half-sold, unless you really understand the ongoing risk. What if the builder never sells another house? What if the builder files for bankruptcy before your house is finished? What if the builder runs out of cash before the roads and other amenities of the development are put in?

Nothing personal, but being a good negotiator doesn't mean much compared to larger real estate legal issues that can come into play if a developer has been comingling funds (instead of keeping your deposit separate, which means you could lose all of your cash in a bankruptcy), and hasn't been playing right with the numbers. What will you do about a warranty if the developer goes under or starts up under a new name?

In my mind, there's no benefit to any buyer buying without the assistance of a qualified team including an agent, attorney, professional home inspector and quality mortgage lenders. (And while the appraisers might get upset that they're not in this list, buyers don't hire them directly.)

This is the largest purchase you're ever going to make. Why not have a roundtable of hand-picked experts to guide you, help give you perspective, provide objective advice and make sure you're protected in this deal?

To get even more valuable advice from Ilyce, visit her Personal Finance and Real Estate Center.

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