I am currently working to get my brokers license and will be opening an office. I am going to be offering a very aggressive commission split and as one of my main ways to keep costs down I am looking to have my office based out of my home. I do not want to have agents in my house. I would want all the agents to work out of their house and meet clients at other locations. I am wondering how agents would feel about not having an actual office to ever go to. Has anyone that has done this with the goal of recruiting agents had a hard time recruiting agents? Do agents or clients if they are made aware of this uneasy with that idea? How do you handle showings? Do you have agents call directly to the listing agent to set up a showing or use one of the eshowing type places? How do you handle earnest money deposit checks? The listing agent would need to get the check for settlement, but if I don't want people in and out of the house, how else can you work this? How do you handle conveyancing? Do you still have staff that handles that or do you have the title company handle it or the listing agent?

See my comments on the other thread, no need to repeat yourself!

its almost as expensive this way (trying to replicate an online environment through technology) I had the same vision you did and currently employ over 50 agents and I work out of my house. However, I spend just as much money as a broker with an office. The savings is minimal.

VM,
Based on your experience, can you address any of the questions in my original post?
Any help would be appreciated.

the main difference is that you will not have a commercial office environment. so, you will need to have a conference room available somewhere for meeting clients. with this type of organization, you will be attracting the more experienced, autonomous agents that don't need or want a structured office environment to work from, and don't need mentoring. you will inevitably have less immediate control of your operations, but of course, as broker you will still have the same duty of supervision. communication between you and the agents will be critical. you must be very well prepared with all systems in place BEFORE you start the operation, or you will be in disarray and lose clients. YOU will be the critical hub of the operation, so you need to be prepared to perform that function competently and efficiently.

ericka said it best, not to mention since you will be attracting the more experienced agents, they will expect you to be one of the best, most experienced brokers around. They will have advanced situations, scenarios and even lawsuits for you to handle on a weekly basis.

I have a 'virtual office' to keep costs down. We save our sellers money and my agents only pay a small office fee per closing. It does work if your agents are able to use the Internet, email, faxes etc AND you have a comprehensive web site. Agents who are new and those with experience call me frequently to find out what my agency has to offer. Too many just don't know how to function without sitting in an office all day...Since my state requires a physical address for licenses and other 'legalities' I did have to open an office and it is nice to have a place to meet potential clients for the first time, pick up checks and contracts etc.

Hi

I have a home based office here in OHIO. There are 17 agents and it works out great. I have a weekly conference call via 1-800 FREE conference number. We have 1 meeting a month (tranining). FREE Rooms in all 14 libraries in my area. We also have other meeting throughout the month when affilitates want to take us to lunch and (Pay) and talk about their products. I have new and experienced agents. WE have the new agents work with a TEAM leader at the beginning. WE have a very agreesive commission split. As the BRoker I feel I should be compensated, but I am not greedy and that is why we have been one of the fastest growing indepen. companies AND I dont take everyone. If the agent does not fit our TEAM mold I dont want them. I know many Brokers using lines of credit and their "OWN" personal funds to stay afloat. No way to have a business. If you need any help let me know. Send me your email and/or number.

A few of you have commented on having "aggressive commission splits." Exactly what does that mean? What percentage to agent/brokerage? I will bestarting my own brokerage this month, and will do so from my house through the summer (to save expenses, primarily), then hope to have saved enough to lease a place in the fall. I don't expect to hire any agents until I have a real office for them to go to, so I have some time to get my commission structure in place....
I have ideas on how I want to do it, but could always use more input! By the way, in this area, most brokerages start agents at 50/50 split. Mine will be better than that!

what do you define as "aggressive"?

I will be doing 100% split with a monthly fee and per transaction fee for back office functions.

sounds good to me!

I've watched a few other Brokers try to manage an Agency with 8 or 10 Part-Timers as their "Staff". In general it always proved to be an unsupportive revolving door with almost everyone of the upstarts leaving the Business discouraged. A few went to larger Agencies where they could get appropriate training and SUPERVISION.

I personally resent being the un-involved Co-Broker who has to conduct the training because so often they don't have a clue and are walking time-bombs. No sharing of Knowledge; No Knowledge of one another or one another's Listings; No Teamwork; No competitive spirit; and No Production. 100% of nothing is nothing.

Remember, the Broker is still vicariously responsible for supervising the entire Sales Staff. This is not a business for Hermits. Maybe your model will be the exception ? Let us know.

compare apples to apples. 50% of nothing is nothing as well, but when you do have a transaction, you make half as much as you could have made at 100%. paying a broker 50% does not mean that you will close more deals. i get better support at a 100% company that i had when i started at a 50% company. support and training is not guaranteed just because there is more money paid to the broker.

Very True!
There is also the the paid training option which is usually cheaper than giving 50% to your broker. Most associations offer training classes on just about every subject you can think of to assist agents.

Vermont007,
As far as your lack of Team concept you could not be more wrong. One can develop their own Team of professionals that do not have their hand in your pocket.
My title company closing agent does everything that an in house closing coordinator does and does not charge me for the service.
My favorite mortgage broker handles everything loan related.
I give my clients a list that includes inspectors by type, real estate attorneys, appraisers, surveyors and any other professionals that may be needed to bring the deal to the closing table.

If you cannot get a question answered by your broker then there is always your state associations legal hotline that will answer your questions free of charge.

Regarding the co-broker education well that is just one of the things you must do if you want the deal to get to the table so you can get your check. You may not like it but it must be done...kinda like paying taxes!