Choosing Where to Hang Your Real Estate License

Choosing where to hang your real estate license, or which real estate company you want to work with is a major decision, and should be taken very seriously, many agents find themselves regretting their initial decision. There are many determining factors when considering a real estate company to join, below are just a couple of those factors.

Does the real estate company have business principles that are aligned with yours?
Will you feel confident linking your name with the real estate brokerage’s name?
Does the company offer additional education, a mentor program, role playing or other business building basics to speed you on your way to success?

Money is always a major concern, when beginning a new venture. Few companies offer a salary, most however are commission based. The two main types of commission based companies are 100% companies and Commission Split companies. 100% companies charge a desk fee – a flat fee that covers your franchise fee, and the costs associated with doing business. This fee may be charged in one lump sum or split into semiannual or quarterly payments. When you make a sale you then receive 100% of the commission. This is an excellent option if you have enough funds to cover your desk fee, and still have money to live on for 6 months to 1 year.

The second option Commission Split companies, give you a split of your commission based on your coldwell banker number of sales or the dollar amount of your commissions. There is no initial cash output, but you will see a drastic cut in the amount of commission you receive, as much as 50% plus franchise and transaction fees taken out of your commission. This is definitely an option if you have limited cash, but building up your bank account may take a bit longer. A few companies offer both options. You may or may not be able to switch between the two options, so make sure you have all the facts before you make your decision.

Are you interested in the power of a company name to boost your business then one of the major real estate companies like Coldwell Banker, ReMax, Prudential or John L. Scott are your best bets. If you are interested in a smaller company, or a company with an exclusive type of clientele or listings a boutique company may suit your needs better, these companies often look for experienced agents, but if it isn’t unheard of for them to bring on new agents.

Another option is working with a building contractor, selling new construction homes. This can be an excellent business, clients come directly to you because of builder advertising. Many builders offer both a salary and a commission split. Your office is usually a model home, so you don’t have to drive all over town to show clients perspective homes, a tour of the models, and drive through the development is just about the extent.

The last option is not actually in real estate sales, but in several states you do need to have a real estate license to work as a Property Manager, in this field you would work leasing homes, apartments or business space. This may be salaried or commission based, but as with selling new construction, the clients/business generally comes to you.

What questions should you ask when interviewing real estate companies?

Ask to see the companies mission statement.
Ask about commissions, desk fees, franchise fees, and transaction fees.
Ask about the cost of insurance.
Ask about any additional fees, phone, long distance, copier charges.
Ask about additional education and continuing education.
Ask about a mentor program.
Ask if they have offer floor time (answering phone calls into the office as a way to build your clientele).
Ask if they advertise to bring clients into the office, or if the bulk of advertising is up to individual agents.
Ask if they have a high volume of walk in clientele.
Ask if the do any annual or seasonal community related activities to bring in clients.
Ask if they have a strong active presence in the community, do they contribute back to the community that gives them business?
Ask if they are a member of the Better Business Bureau, and the Chamber of Commerce.
Ask to meet and speak with a few of the agents in the company.
Negotiate for your commission split or desk fee, you just might get a better deal.

When you feel comfortable and confident in a company and with your colleagues you will be happy in your work.

Always remember it is your good name and your real estate license, making a well informed choice before affiliating with a real estate company, is just good business.