Does anyone know of Brokers in San Diego that are 75% to 100% commission and are minimally fee based.

I am looking for a Broker that can provide more on the side of commission, not monthly fees.

Anyone here from San Diego using this sort of Broker. Can anyone give me some options?

Thanks!
Keith

KGB,

I thought you stated in one of your other threads that yu have already jumped into this career? Aren't you with a broker already? If so , who are you signed with?

When choosing a broker, just make sure you remember a few things. It is not always about making a higher split that is important. Great training is very important to most new agents. Name recognition is important to some agents. Leads are important to some. Most seasoned agents will also agree that it's not always about the commission split with your broker. You can be making 100% on a commission split, but if you're not doing any business because you're at the wrong place, then 100% of nothing is nothing.

Just trying to give you some helpful tips when starting out.

@ Agent 007

I did say that I jumped in. I do not currently have a broker, as I just passed my sales exam. Yes, you are correct. Though, I suppose it depends on ones definition of jumping in? I'm actively prospecting already, so, to me that means "jumping in." I'm not waiting for the Dept. of Real Estate here in CA to mail me my final approval. I'm proactive that way.

Name recognition is not important to me (well, not as much as making a name for myself). I will sell myself, not my broker. Though, I do understand that point, I can understand the benefit of having that for some agents. Who knows, I still may end up with Keller Williams, but I want to explore my options first. But, I do know my capabilities. Based on my past experience and personality, I already know what I am capable of.

I would like some training, I think I will need it in the beginning. That is for sure. More than classroom training, I will need a mentor, someone I can call upon to answer questions. I already took all the Real Estate Courses in my community college, so much that next semester I graduate with an Associates in Real Estate.

Leads... I wouldn't turn them down. Though, I'm confident I can generate my own. Leads wouldn't sway me to a broker, would just be a bonus.

Good point about the 100% split, one has to conduct business for 100% to mean anything.

This leads me to my next question:

Do some real estate agents give rebates to their buyers or sellers?

The point of this question is to explore higher volume sales at lower commissions vice lower volume at normal commission.

For Example:

Have agents in the past given buyers or sellers a refund after close. The rebate would be paid to the buyer or seller after close of escrow. Lets say the real estate sways buyers or sellers to use him/her as an agent because he/she will give the buyer or seller a discount, or basically pay the buyer or seller a % of his commissions. Though, not part of the commissions, but separate money.

If a client of mine buys a house for $300,000 I would give them say $1000 (or even $1500) after the close. Though, the theory is that the loss in income would be made up in more volume and more sales.

I feel I could do this because I have career already that pays enough money for everything I need. Even 1 sale a year would be nice, and I would be happy with that, even if its buying my own investment property! Though, I want to do more than that. But I had an idea about this volume theory.

Has this been done? Under a 50/50 split I would generally get 1.5%. So, I could even give .75% of that 1.5% to the client. Though, I do not intend on working under 50/50.

What do you think? Would this work, or is this stretching too far?

Any input would be helpful.

Thanks!
Keith

The legality of "kickbacks" or the sharing of commissions with unlicensed individuals should have been addressed in preparing for your California Licensing Examination.

I thought I made it clear enough. It is not a commission share, since unlicensed agents cannot receive commission. I know this. That was not my question. Though, who said rebates or collecting less commission is illegal? It's not a kickback to a third party.

One example would be, if I list a seller under a %5 commission contract, and I take less commission for myself, but everyone else still gets their full share, for example.

Vermont,
I think KGB is talking about rebates to his own clients. This is perfectly legal.

KGB,
You have hit a sensitive spot in our business with your question. Yes, you can rebate money back to your buyers and sellers if you choose to. Most agents frown on this idea though because it is like whoring out our business for pennies. It makes the business look like less of value when you start giving it away. It sounds like you may be interested in a little company called Zip Realty.

Practicing real estate without a license and without a broker is illegal and is nothing to brag about.




In some states this is illegal. I do not know about California but since you just took the course you should have learned whether it is legal in CA or not.

KGB: In California, it is legal to give rebates to buyers and sellers. But remember, it is up to your broker first, not you. The broker represents the client and you are an agent for the broker.

Some brokers will allow the practice but will not allow you to advertise rebates in any of your written communications. They want to discourage calls from the public where someone says, "KGB just promised me a $2,000 rebate. I noticed you have 60 agents on your website. How much rebate will your other agents give me if I use them instead? Which of your agents gives the biggest rebate?" If your broker allows rebates, then you can give away all of your share of the commission if you would like.

But you will not need to give clients a rebate if you have earned their respect and trust. They will recognize your value if you are providing a professional level of service. If your promotional gimmick is that you give rebates -- prospective clients will see you as a fungible commodity -- they will quickly jump ship to a different agent who promises a dollar more in rebate. If they don't jump ship, they will ask and/or expect you to throw in other freebies -- pay for their inspection, throw in some money for repairs, pay for their home warranty plan, etc. But don't take my word on this. Go ahead and give some of your commission away and see how it works out.

@ Bigtoe,

First, I am not practicing Real Estate, if you've been reading, I am prospecting, a monkey can prospect. There is a difference and there is nothing illegal about it. I am not entering into any agency agreement, nor am I entering into any contract, verbal or implied. Yes, practicing is illegal without a license. I love how people tell me things I know already, instead of providing anything constructive to the conversation.

If I tell a friend, hey soon I will be a licensed real estate agent, keep me in mind. This is illegal? I think not, but it is a form of prospecting. I really wish people would pay closer attention to detail when reading posts and not just react with knee-jerk reactions to everything they read. I thought agents payed closer attention to details?

@ Cave Man,

Thanks for your constructive comments, this is what I was looking for vice what I am getting from the others, text book quotes from my Real Estate Law class that I just took.

I'm not set on any one way of doing things, I just want to know what I can and cannot do and what has worked for other agents.

What exactly are you saying to your prospects?

If I were you, and until your first few deals are closed, I would concentrate on going to a place that provides great training. After you close a few deals, then you can jump elsewhere for a sweeter arrangement. Most 100% shops (not all) don't offer much agent support. They want agents who know what they are doing and who won't need much handholding. That's the tradeoff.

@ Perky REALTOR

Just that I passed my exam and that soon I will be a licensed Real Estate Agent. I'll let you know soon when I receive my license.

@ Cave Man

Thanks, Cave Man, I think you have good advice, thanks for providing something other than something I can read in a text book.

KGB,

I told you this topic hits a sensitive spot with many agents...lol. Many of the veterans and major contributors on this forum can help answer many topics with excellent advice. Even though some responses will not always be constructive, it is good to hear other people's views and perspectives.

KGB (this for real?)

You want to do what you want to do, so do it. Find a broker that will play your game and try it. I know you asked for names, well try that old fashioned thing called a telephone book and start calling.

Your theory is strictly that, theory. Many in the past have tried and taken a nosedive into the poorhouse. One of the best examples was a company called Walker and Lee that had offices all over California and was going to take over the state with a 4.5% commission. If you say Walker and who that is exactly my point.

I had multiple offices and bought out a small broker who was retiring to get his lease. I moved his producing people into my offices and about this same time a group of my agents had been convinced by another agent that they could grow their business by offering "loss leader plans" of several types.

So I put them all in this newly acquired office under the existing name and gave them all 100%, just had to pay the overhead. It was nice to see that everything I told them would happen did happen. Even their existing clients were wanting them to work for "nearly free". The biggest surprise to them was clients that they sold their homes for at a good price, would not jump into the next leg with them and buy their new home with them so they could make some money. Instead they said they wanted to use a real agent, their service was perceived as low value even though they had gotten very good results for the seller. And whatever referrals they got were for more money grubbing prospects.

When they did their income taxes for the year they didn't need to pay much, if anything, and the reality set it. So one office closed and the lease sold for a profit, and several agents that needed to restart their businesses.I suggest you go a more conventional route until you get your own brokers license (you won't lose any money) and then fly or die in your own plane.

@ Agent 007

hehe, thanks for laughing... It's almost like most agents here need to be in a support group of some sort? I honestly hope all agents are like this because it will be easy to step over them down the road. Why agents are so sensitive on this board, does not make sense much sense to me. Why aren't these agents working instead of reading and complaining on forums? I was curious if they would speak to their clients this way. Amazing.

@BayAreaBrian

KGB - well kind of for real, but no not really. hehe... My wife is Russian, so I am just playing around with the name KGB for fun. I speak some Russian as well of course, even took some college courses, but mostly I learned from my wife. - Thanks for your input, it was received and I thought you spelled it out quite clearly. I did find a broker by the way. At the end of last week I found a smaller broker and I'll start with 60/40. but with no monthly fees and no E/O. Basically, my overhead is only my annual NAR/CAR/SDAR costs and MLS. Perfect! I was looking for higher than 60/40, but each transaction will change the split by 2%... 62/38... etc.... until the cap at 85/15. He provides training and even before my license he wants me to come in and get some training on Monday. I don't care so much about name recognition, I'll make my own name recognition.

I do plan to eventually get my own brokers license and I can afford the risk. In CA, I read the DRE only requires that one have either 2 years experience or a Bachelors Degree. I graduate with my BA next year. I will toss the idea around in a year depending on how well I am doing, or how I am not doing. At least my degree is in business and marketing, exactly what Real Estate is.

Thanks again for your input. Helps out.

KGB