Which Real Estate Broker is best for new agents
 

Hello to all RS members, it's been a long time since i've been on RS, so much that i've forgotten my password to that email and had to create a new account lol.

Anyhow, I am at a crossroads in my career path, I lost my job about 4 months ago and have been living off E.I., I don't think I want to go back to selling cars. I have been thinking about moving into the real estate field, but I have a few doubts in my head that I want to clear up before I proceed and regret it.

My questions involve the different brokers ie. ReMax,Century21,KW,Coldwell Banker,Sussex. and how commission is split and how do I know which one would be right for new agents. I know that education will cost me around 5k, which I am prepared for, but I am also unsure of what fees will I be required to pay to the broker (monthly,annually,when I first join, and what exactly is a desk fee)

I have read a few of these real estate threads and they've given some great insights, if you could possibly help me sort out the whole overhead question I would greatly appreciate it

Thank you

James

You're going to need to contact the managing brokers at offices you're interested in to get a copy of their commission/expense options, meaning you can't just goto one Sutton office and expect the same commission split or deal free structure at every Sutton office thereafter.

Transaction payouts are either commission split which usually covers your monthly dues to the office and board in full but normally that structure is reserved to higher volume brokers. Otherwise you'll likely be paying monthly dues of usually a few hundred per month minimum plus a deal fee for every completed deal. Desk fees are your monthly dues to the office if you rent space but it also covers fixed expenses like administration, etc. Everything is out of pocket and considering most brokers start out the first 6 months with zero business unless you have contacts waiting, be prepared for some financial strain.

RE/MAX historically has had high monthly dues especially versus smaller, independent brokerages - you decide whether or not it's worth the premium. All those ads you see of the balloon for example? You're paying for that. If you can get steady business and don't believe the brokerage name has much merit to your business, I would go with a cheaper brokerage. There are tons of successful brokers out there that are on both sides of the fence.

Lastly, good luck. Selling real estate is an astonishingly high turnover industry. Something like over 90% of licensed members leave the industry within the first year, and another 90%+ gone within 5 years.
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It also is at an all-time high for number of working agents as there are a lot of part-time agents.

With declining sales numbers, longer MOI, record number of RE agents, and a push to discounted online brokerages skipping RE agents entirely, its not exactly the bets time to consider this as a career. If I was looking for a RE agent, knowing sales are down and my place my sit awhile, I'd be picking an established RE agent who has connections - not a noob.

Sorry, don't mean to rain on your parade, I just don't want you to invest time/money into a career that may not pan out at this time considering you've already been out of work for awhile.

Thank you both for your replies I truly appreciate it, its not as much that you're raining on my parade, I think your replies have made some things clear for me. I don't really know how the market is, being that I am not an agent myself and rely solely on honest people who actually take time out of their busy careers to answer my question.

Like I had said, I don't really know where to move on in my career, sales are down all around, that is why I am currently unemployed, less leases, less sales = less employees.

I also have an agent that is a friend of the family who is doing good business still, maybe I will try to contact her to get everything else cleared up

Thanks again guys

I can't speak on my experience as I have been very lucky to have gone in the business under my dad's wing. But I can tell you it's not as easy as people claim it is. It's true, within the first year I'd say over half of the agents who get their licence need to either get a 2nd job to make ends meet or quit altogether because they are making no money. The challenge in this business is there's a LOT of competition and like taylor192 mentioned, people are going to use an experienced realtor vs someone super green.

My dad has been in the business since 91 and he's now in the top 1% in the city. A lot of his past clients went into the business because they "saw" how "easy" it was for him to make money, but little do they know the first few years were super tough and you really have to build up your experience and name before you can make it big. I'd be lucky if I became half as successful as him.

If you are not "born into real estate" prepare for a struggle. (Not a dig at miss crayon BTW) If you don't have any "inside connections" it will be very difficult for you.

Yes the industry is saturated with no-nothing losers, half these retards barely know anything about homes, contracts, or finances.

^totes understand. If I didn't have someone experienced to teach me the ropes I know for sure I wouldn't make it. Way too many people see this career as an easy money maker. It can be...but it ain't gonna happen overnight
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Just wanted to say, I love miss_crayon.
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this top 1% award seems to go to an AWFUL lot of people... what appears to be WAY more than 1% of realtors (although i guess if you include all of the realtors who sell no properties and work at starbucks, then maybe its 1%)

There's a glut of brokers out there, moreso than ever. A ton of them work minimal deals through their circle of influence (friends, family) and they make a killing because they happen to cash in on people who end up purchasing high-priced properties. This is common in the states (California, NY, etc) where a broker deals 2-3 transactions a year and pull in well over six-figures because of the pricey listings and their commission structure.

I believe Medallion status relies on both total commission dollars and unit sales. I think it's something like a minimum of 30 transactions annually to make top 10% these days so top 1% brokers are likely clearing at least 50-60 transactions a year. I remember veterans in the industry recalling the 80s where you reached medallion status with only 2 transactions.

Unfortunately, there are literally no barriers to entry. A semi-intelligent poodle could probably get licensed given the current pool :facepalm: