Humber/Ontario Real Estate Course 1 Exam Practice

What is NOT typically included in a salesperson’s first-year budget?

1. Insurance premium payable to the Real Estate Insurer.

2. Sales performance bonuses.

3. Application review and salesperson registration fees.

4. Marketing and advertising expenses.

5. Vehicle expenses.

6. Business supplies.

The correct answer is: Sales performance bonuses.

The first-year budget for a salesperson in real estate generally encompasses essential and unavoidable expenses associated with starting their career. Sales performance bonuses, however, are typically contingent on achieving certain sales targets or performance metrics and are not guaranteed expenditures that a new salesperson must account for when planning their initial budget. Since these bonuses depend on future sales success rather than being fixed costs, they are not typically included in a first-year budget. In contrast, the other options represent standard operating costs a new salesperson would likely incur right away. Insurance premiums protect against liability issues, application and registration fees are necessary to legally operate as a salesperson, marketing and advertising expenses are crucial for promoting listings and oneself, vehicle expenses arise from the need to travel for showings and meetings, and business supplies are essential for daily operations and administrative tasks. These are regular costs that one needs to plan for from the beginning of their career.