All contracts are negotiable, so I was wondering if anyone has had any success negotiating their independent contractor/broker relationship contract when they sign up with a company.

In particular, I would like to not pay any fees (E&O, Desk Fees, Training, etc) until after my first closing. This seems reasonable to me. My concern is that I do not want to pay upfront costs, then find out that I was misled in the interview and a month later I want to change companies.

How about no compete type clauses in the case of contract termination. I should be able to keep all contacts created while working under that broker correct?

Anything else that maybe you wish you had negotiated upfront?

Thanks for the help.

Not sure how much luck you'll have negotiating, but you ask good questions. Definitely I'd push for taking your active listings with you when you leave - although many brokers feel that since they're "paying" the costs of marketing the listing, they should be able to keep it in-house. I've never worked anywhere where I was allowed to take a buyer-under-contract with me - and that might be a lot of trouble because all the contracts would have to be re-written under your new brokerage. That would be the case with a listing-under-contract as well - anything that is heading for the closing table will not likely be allowed to leave the office.

As far as not paying your fees - I can't imagine a broker agreeing to that since whether or not you even have a closing is far more due to your efforts than any promises made by the company. I'd probably leave that one alone - besides, you MUST have E&O to practice.

I'll be interested to see what others say.

One more thought on E&O - here in Colorado, it's transferable - so if you pay for it at one company, it will follow you to the next.

Sorry - me again. If you don't want to pay much upfront until you've evaluated the company, you need to look for a split company instead of a desk-fee one, and somewhere that doesn't charge for training. You'll still have costs upfront, but they'll be lower.

Probably more luck IF you're bringing a demonstrated track record of performance with another Brokerage. They should have a Policy and Procedures manual that clearly lays out "fair" treatrment for all. Rookies have little or no clout.
From your point of view, of course. It's reasonable provided that the Broker can offer the same FREE support services to everyone else, too, so that there isn't a basis of charges of favoritism or discrimination. Never expect any special treatment if there's more than one SalesPerson (you) in the Agency . . . . it wouldn't be worth the risk to the Broker to treat someone differently.
No one "wants" to pay these costs; but this is an investment in YOU. You have to be willing to invest in YOU. Why should someone else be willing to invest there money in YOU if you don't have sufficient confidence in YourSelf to want to do so ?

Wherever you land; please stick it out for more than a month. This is not a business for those that require immediate gratification. It's more for those who have patience and a willingness to trust in the future and take a long run approach. I can hold my breath for a month !

Also, they would have similar concerns about you: what if you turn out to be a real dud who's afraid to converse with Buyers; or one who insults Sellers; or argues with co-workers; or creates ill-will with co-operating Agencies ?
Be careful of any No-Compete Clause. Run it by your own Attorney before signing one that includes such a clause - that's a red flag ! By definition, Clients (who signed Contracts) become the property of the Brokerage; while mere Customers are free game (for all of us).

Good Luck where ever you land; and expect to adapt to the program there . . . . not to have the program adapt to you !

Why does that seem reasonable to you? Why would you expect a broker to cover all of your up-front costs to start your business...when you don't have any guarantee of paying it off?

In order to negotiate, you need leverage...otherwise you have no ground to stand on.

What's your leverage? What do you have to offer that other agents don't?

If you don't have a leg to stand on, you have no position to negotiate from...

"Cuz you want it" isn't generally good enough

But hey - it never hurts to ask and if you don't ask you don't get Personally, I'd shoot for 100% split with no desk fees and paid training with start-up costs covered for 1 year and let the broker work you backwards from there. Honestly...say it with a smile on your face and the broker will probably smile back and appreciate your effort...as he shows you the door and tells you to come back when you're ready to start a business.

Understand you are starting your own business and you need to take it seriously before anybody else will. If you don't have start-up costs then you're already starting on the wrong foot.

just my .o2 ...

Here is one non compete judgement.

http://www.realtor.org/archives/judgmentsjuly05

"In particular, I would like to not pay any fees (E&O, Desk Fees, Training, etc) until after my first closing. This seems reasonable to me. My concern is that I do not want to pay upfront costs, then find out that I was misled in the interview and a month later I want to change companies."

Good luck with that one!

If I the principal broker have a track record of getting leads and closing sales you need ME alot more than I need YOU.

Your first closing could happen in 1 month or 12 months. I guarantee if you did the things I said your business would be booming. The question would be would you be chicken or have the guts to do it.Paying your dues is a right of passage. If you are this unsure alraeady you need to leave the business as the path to success only get's tougher from here.

Most new agents sit around the office playing on the computer,drinking coffee,waiting for business to fall from the sky and hit them on the head. Very few say OK I will do the things needed to succeed at any cost.

Each agent that is not producing is COSTING that broker money AND filling space another agent that had more fire in there belly could be occupying.

Hey thanks to everyone who responded to this post!! Having no experience, it is good to get a feel of the response on this subject.

You are right, as a new agent I don't really have much clout.

I am trying to decide which company to start out at and like aspects of a couple of different places. I guess trying to get the best of both worlds is probably too much to ask. But I'm going to ask anyway. What do I have to lose?

The hardest thing in making a decision about a company really though is that I liked everyone I that interviewed me. Real estate people are a likable bunch huh?!

And another thing. If I have the guts to sit in front of a broker and negotiate my contract with him or her. Do you think that I am not then going to have the guts to prospect? Come on.
While I do understand the point you are trying to make. I am just trying to get the best deal for myself. The same way that I am going to get the best deal for my clients. And yes, I will work hard for them to make sure that happens too.

Thanks again. This has been fun. my first post!

You gotta look at getting the best deal for yourself, but you also have to look at the Brokers side. He is taking all the risks of bringing you in.

You can negotiate a start up cost being delayed until closing but you have to give as well usually in the form of a commission. Joining a brokerage though with no money down and all start up costs paid, I don't see that happening for a new agent. You would have no incentive to make it work. If after 6 months you still had no sales, no income you could walk, all the time the broker carried your monthly costs and you can walk.

Let me just make you "Guts" anology more realistic. You are in a bar (agent). The woman is there (the Broker). Sure the man has the guts to pick up the woman, but will he call her in the morning and begin a relationship?

You have to put some equity into the relationship to make it all work.

As a broker, I would personally be impressed with an agent who wanted to negotiate the independent contractor's agreement before signing. BUT the agent better be able to back up their side of the negotiations with some solid reasons why I should consider it. Say, if an agent comes to me with experience doing appraisals, i will probably waive the training period before allowing them to start peforming BPOs...

And, an agent needs to realize that, just because they are attempting to negotiate, doesn't mean the broker will make any concessions to them. Some brokers may even refuse to consider an agent who is unwilling to "just sign here." But those are the ones you probably don't need to sign on with, anyway!