What do you think about this broker company in florida called GRAND REALTY of America?

www.grandrealtyofamerica.com

The website for agents is this one:

www.grandrealtyagents.com

They offer:

-100% on all sales and listings.
-The fee they only charge is $395 per deal. NO DESK FEE, no hidden costs, no surprises.E&O included.
-Free training.
-Great meeting rooms. 24 hour access.
-NO sales meetings to attend.
-No floor time required.

And more other things.

So what do you think? I am right now with Keller Williams, and getting all the personalized training I can get, also at the Miami Board of Realtors (they offer great training). When I feel I'm ready, that I know all what I have to know to start working and performing a good, knowledgeable and competent service to my clients, do I really need to work in a recognized company like Keller Williams? I mean, what are the REAL benefits by working with a company like KW, Century21, so its worth it giving them 30-35% of my commission? plus insurance, plus desk fees?

Please, need your thoughts about this! thanks!!

That sound too good to be true!

That's actually right about what I charge...Only differences are that my operations are 100% virtual so I don't have meeting rooms, but I find that clients like it better that I come to them anyway. My training would also be limited since I wouldn't hire a new agent. (You could get whatever type of training you want on your own with your commission savings.)

Once you hit a certain economy of scale, you can offer everything they offer no problem. They've got 600+ agents working for them, so clearly they can afford more than what I could offer as a broker. However, with that many agents, I would have to wonder how much personalized attention I'd get from my broker or manager on the more difficult transactions.

As to your second question...Some people like having the security of a large firm, but it's really local market-based and you're going to get the vast majority of your leads through your own personal efforts no matter who you're working for. I've never worked for a brokerage with large-scale name recognition, so I can't really comment on that. I, for one, prefer the independence and flexibility that come with being a very small operation.

Perkins, I like the way you work > virtually.

This company I mention here, they have several offices and they are going to open many more offices. At the actual offices, they have broker available 7 days a week, and they say that the most of their agents work from home. They have mortgage brokers to assist all agents. Clients chooses where to close: his office, at home, club, company's office or anywhere the customer decides. Kind of the same way you work.

And I agree 100% with your philosophy, that if agents have more money on their pockets, they are willing to negotiate their commission. But you can't do it if you are giving 30% to 50% of your commission to your broker!

And agree also what you said: "...you're going to get the vast majority of your leads through your own personal efforts no matter who you're working for". That's exactly what I'm talking about! I have to do all the work, getting all the leads on my own, paying my own advertising and I still have to give them 35% of my commission just because I'm using their name? I consider this is very exaggerated!

People will hire me, because of me not because I'm with "this or that company". They will hire me because I'm honest, because I have integrity, because I'm competent, because I will do a good work and take care of them, giving them what they deserve: a good service.

So why lots of agents work for these big companies for years? if they already have good experience, why they still with them if they can work with other companies and get better splits? what exactly are they getting from them that its "so valuable"?
I just don't get it yet.

Thanks Perkins for your input.

[quote=RealBoots]That sound too good to be true! [/quote]

And when it's too good to be true it probably isn't. There must be something that they are not offering for that sort of savings.

How long have they been in business? How long will they be around?
That is one that would nag at me...

I can tell you from my years in the business that hopping from company to company no matter the split will not give you the silver bullet to succeed.

I would put much more weight on a mentor.Say a top 5% nationally broker or agent closes 40 million a year for example you could learn a ton from that person.

I am not talking about a person with a 100 teams and 100 assistants.I am talking brokers or agents who do massive volume and have maybe one secretary and one assistant.

I have seen agents hop from company to company and split to split and it does no good.

I don't even take on agents anymore at my company because I don't have time for them. Between my own deals and my investments I lose money by having agents and giving time to them.

My initial goal 3 years ago was to build up a 100% company real big and then have the competitors or a national company buy it out.Once I reached about 50 agents though it became a huge headache.

If one agent has a fire in their belly and you train them extensively on good split to the broker such as 70/30 then that one agent will outpace 30 so-so to crappy agents.

imho, there is no "one size fit's all" agency model. $395 per closing sounds great for the agent and a potential nightmare for the broker/owner. one bad deal or rouge agent can wipe out profits and cause massive headaches.

i do beleive that consumers care what company you are with - but not to the extent as some franchises would have you beleive. in many respects, franchises are more for attracting agents than consumers.

in the end it's the person/people you work for/with and you have to be comfortable knowing they have your back and can support you if needed.

Super Realtor:

It would be great to work with a person that closes 40 million year and learn from him, the problem is to find that person that has only one assistant and don't have a lots of agents working under him. Very idealistic. I prefer being realistic.

And how you said: "I don't even take on agents anymore at my company because I don't have time for them". That's EXACTLY what the 40million-annually-maker is thinking. A person/broker making that money don't want and have the time to train other agents.

You don't need someone who closes 40 million a year to learn how to sell enough to make a decent living.

I still don't understand: what are these big companies offering that its worth for giving them 30%-35% of our commission?
Really, I still don't see yet the value of giving them so high cut. I have to get on my own all the leads, I have to pay the advertisement, I have to pay them separately for desk fees and insurance.

Why I see here, is that Agents join this big companies and give them high cuts because of the name. That's it.
The same like people prefer using a Calvin Klein or Ralph Laurent Shirt instead of one unknown brand. Even if its made with exactly the same fabric, the same style, the same color and complies the same function. People prefer paying more just because has a famous name.

So I see this very funny, that the public prefer a Realtor of recognized broker company than another Realtor with X company, even though they can perform EXACTLY the same service? And maybe the Realtor with X company can perform a better service?

Before I was into Real Estate, I didn't care about big companies or small realty companies, what I look is the personality and the good service the Realtor can give me and what that Realtor can do for me. I think a lot of people think the same as me.

In my experience you need your name, reputation and experience to get business (luck helps a little too). If you do not have that you'd do well to have a popular name behind you so someone will have some reason to call you. And that is worth something. How much is debatable and negotiable.

Well yes Perky you are correct in that you don't need someone like that if you just want to "make a living".

I know I don't want to just make a living.I want to make as much as I possibly can to fund more investing so that I can eventually retire and do investments full time except for some core clients that have been with me awhile.

To the Original Poster the reason brokerages charge those rates is they know about 90 percent will be gone by the end of the year.

So the big brokerages it's "churn and burn" and how many agents can the recruiters get signed up so we make a fat split off of the 1 to 2 deals from their sphere of influence before they quit.

It takes money and time to train you and create systems and put in place.For that the brokerage wants a big chunk of change when you have your closings.

You've got to stop being so negative. Look at the converse . . . . they're allowing you to earn 65 to 70% !

Having spent the better part of November being so discontented, did you have time to pick up any Listings or put anything under Contract ?

I think you'll be much happier AFTER you put some deals together and produce some Commissions - regardless of the split. Let's see how much support you get once you've proven you can bring home the bacon. This sulky disgruntled attitude can become contagious and will be reflected in your general demeanor. I'm sensing it from 1500 miles away. Think positive.

@Vermont,

You are completely missing the point here. This has NOTHING to do with being positive or negative. Your "the secret" speech is irrelevant here.

They are "ALLOWING ME"? So they are not giving me anything free, I pay them a monthly fee to be able to use the office, (something I really don't use because I work from home and use eFax/MongoFax), I have to get ALL the leads on my own, I have to pay for ALL my advertisement, I have to do all the hard work and you say they "are allowing me" to earn 65%? HAHA!

Why do you think all these broker's companies send postcards, letters, call the new licensees inviting them to work in their offices? Why do you think we are the ones who choose the broker and not otherwise? Because we give them money! not the opposite! So you are completely wrong when you say "they are allowing me to earn 65%!"

If you feel very happy and positive to put in your broker's pocket money that should be yours, that's up to you. You can feel very happy about it and that's respectable but many people feel different and kind of exploited.

I just want to know what are exactly the real benefits of working with these big companies that its worth GIVING THEM (not the opposite) a high cut of MY commission. I haven't read or heard anything different than "be able to use their name". And I think that giving them 35% of my commission just to use their brand name, is VERY exaggerated. And that's has nothing to do with being negative or positive, IS BEING FAIR AND REALISTIC.

@Super Realtor, what you said makes lot of sense. Now I understand one of the reasons why they ask for a high cut. And because of the "training" they give. The problem is that the most of the "training" they give is in PROSPECTING and giving motivation using "The Secret" method. That's how it is in my office. The real good training I'm getting it from my Realtor's Board and my mentor (that doesn't belong to that office). At the office, they don't train you in how to do a good listing presentation, how to do great CMA's, how to do a lot of things in order to perform a quality service. They just focus on prospecting through cold calling and door knocking! Is this the training you are talking about?

If I were to go to an area where I didn't know anyone and decided to buy a house, I would find an agent by calling an office. There are a few big names that I know will be everywhere so those are the ones that I would know to look for. I would have no idea to look for the other brands and would never have heard of most of them. While they are not marketing you specifically, there is a lot of money spent on national advertising to make sure that the public still remembers only the big brands. I also believe that the franchises usually have different marketing tools at your disposal that wouldn't be available otherwise.

The larger offices with the high splits that you are referring to usually also have the fancy offices with larger support staffs.....secretaries, mortgage brokers, managers, trainers, etc. Many of the top agents that I know do in fact work at the big name offices and are happy to do so because they can simply worry about listing and selling and hand everything else off to the staff. When the commissions are lower something has to give. That being said, once you get to the point where you can show that you are a valuable asset to the company then you can also negotiate a better split.

There is also a high turnover on agents who either fail, or move on to other brokerages after using the brokerages training so yes, they do have to get their money out while they can.

I'm certainly not suggesting that this is the best type of office but it works for many people. Personally, I own a small independent office in a rural area. Around here the brokerage name doesn't mean much but if I were to move into a larger centre and go work for someone else, I would consider the big name offices.

I guess it depends on how much the desk fee is. A 70/30 split would be really good for a beginning agent. For most "big box" brokerages, even the top agents would only be getting 80/20 split. Franchise fees and such will take up around 10 percent.

[quote=Anyelina]I just want to know what are exactly the real benefits of working with these big companies that its worth GIVING THEM (not the opposite) a high cut of MY commission.[/quote]

I know it feels that way, but in fact the broker is giving you a cut of HIS commission. I don't know how they do it in Miami but here on the West Coast the listings and commissions belong to the broker, and you work for the broker in return for a cut of the action.

This is regardless of the fact that the IRS has determined all agents must be independent contractors, as per the tax code. So, for tax purposes: you are an IC, no choice in the matter. But according to the contract you signed with your broker, I bet it says that all listings and commissions belong to the brokerage. If so, then according to contract law it's not your commission until the broker pays out to you.

Even if your clients are loyal to you and would follow you elsewhere, the deals you have going right now are your broker's deals, and you're providing service on those deals as a sales agent. Please correct me if it's different in Florida. I don't think I'll move there any time soon but I'd be curious to know. I lived in Miami and Ft. Lauderdale in the Miami Vice era, I was a bartender with a view of the ocean. I kind of miss those days.

And to answer your question: this is my first year in real estate and I went with a big name franchise. I don't like the size of the split going to the franchise. But I have received a lot of good training, personal training from some of the "heavy hitters" in my office, I always have people available to answer questions, cover for me, back me up. Nice work environment, nice conference rooms and offices and technology, etc. etc. Maybe I'm paying too much, but I can also see what I'm getting for my money. If you really can't see ANY benefit that your broker is giving you then maybe you really should jump ship.

On a slightly different topic: when I was looking for a broker to work with I interviewed one place where the recruiter held up a copy of "The Secret" and asked "Have you read this yet? It is VERY important. EVERYBODY here has to read it, and YOU WILL TOO." I decided not to work there!

@MHT: Well, in my case, if I have to go to an area I didn't know anyone, I would do my research on the internet, call the Realtors I like better after doing my research, then I will meet them in person and then I will choose. I don't think its a good way to find an agent just by calling an office of a big name company, where there are hundreds of agents, both good and bad.

But reality is, that most of the people are not "out of the area", the most of the leads are people that live in the area. The most of the people don't call an office to find an agent, they rely on their friends or people they know to give them referrals.

But you are right when you say that top agents like to work at the big name offices where they can hand all the paperwork to the staff. But what I don't understand is: if they are top agents, making a lot of deals, have lot of experience, getting the most of their leads by referrals, have built very good momentum in their business, why they don't get their broker's license and work on their own instead of cutting their commission and giving it to another one?

@Mr. G: I understand what you mean, when you say that the broker is giving me a cut of his commission. It seems that way because BY LAW it HAS to be that way, because sales associates CANNOT receive directly commission from clients, and by law it's mandatory to put a broker's name on all the advertising and listings. But this doesn't mean that the broker is really paying us, is the client! The broker is AN INTERMEDIARY because its MANDATORY BY LAW, and here in Florida, all agents within their first 2 years, they have no other choice but to work with a broker. After 2 years, associates can get a broker's license. So it seems the broker pays me, but in reality its not! The commission is paid by the client, and I'm the one getting paid because I'M THE ONE DOING ALL THE WORK, the broker its just offering me what its necessary by law for me to get paid! And it seems these companies are really taking advantage of that by asking a high cut!

I am a newbie, I'm not saying that I'm looking right now to look for a better company that gives a better split. For new agents its good to start in a big company, that's exactly the reason I am with Keller Williams, because they suppose to have a great training. But in my office, they focus more of their training in prospecting, especially with the cold calling and door knocking. I don't like that kind of prospecting, but at least they have people willing to help me as a new agent with other things.

But my point with this thread is, why agents that knows what to do, that have learned all what they need to learn, that have been more than 2 years working with a big company, that have built good business and referrals, that are making good number of deals, they still working with these big companies giving them these high cuts, having the option to make more money by working with other company that offers better split or getting their own broker's license?

[quote=Anyelina]
@Mr. G: . . . I'M THE ONE DOING ALL THE WORK, the broker its just offering me what its necessary by law for me to get paid! And it seems these companies are really taking advantage of that by asking a high cut! [/quote]

And if you're making good money two years from now, and you really like the business, you can become a broker. Or go work for a 100% commission broker. Take the long view: two years is not too long to learn the business and see if you want to stay in for the long term.

[quote=Anyelina]
But my point with this thread is, why agents that knows what to do, that have learned all what they need to learn, that have been more than 2 years working with a big company, that have built good business and referrals, that are making good number of deals, they still working with these big companies giving them these high cuts, having the option to make more money by working with other company that offers better split or getting their own broker's license?
[/quote]

Lots of reasons. For example: a successful agent who's making good money will lose a lot of their income to the costs of starting up and running an office. It's financially safer to just keep on working for a broker and taking your split. In addition, an agent like you've described above has flexibility in their life: they can quit the business and do something else any time they like. If you start your own brokerage you have a responsibility to your agents and clients and may feel more tied down. Finally, I believe most people just have the employee mentality. They don't want to worry about a budget, insurance, business development, managing people, etc. They just want to keep doing the thing they've been doing. Even for a successful agent, it's a big jump to go from working by yourself, or with an assistant, to running an office.

Just a couple of points that I thought of when reading this thread. (1) KW doesn't do any national advertising, so it is much more well known among agents than by the public. I don't think their name will bring you business like REMAX or CB, or Century 21. (2) Although the 70/30 split isn't very good for someone who is starting out and just doing a few deals a year, they have a cap, meaning after you have paid so much into the company ($21k around here), you get 100%. That's a better deal than paying by the transaction if you do a lot of business or if you are in a high-dollar market.

This argument has been on here for years. Every newbie wants a low split because they see no value in the services provided by the broker. Everyone that has been with a big box office for years praises their office and is okay with the split.

The fact as a broker is that 35 or 25 or 20% of nothing is nothing. Build a book of business and show what you can do, then talk to the broker about adjusting the split. Go talk to a ReMax or Realty execs broker and find out what their monthly "desk rent" for agents is. Do some research and discover what the actual cost of operating a brokerage business is. I think you'll be surprised. Things like workman's comp insurance, unemployment insurance for employee and liability insurance are usually not part of an agent's knowledge base.

70/30 is tons better than 50/50!

This is exactly my point with new agents.

HIGH DEMANDS & LOW RETURNS

The top producers that stay at companies get such a great split that companies make very little from them.Where the companies make money is when the top producer brings on new agents with teams and then helps those agents close deals and the brokerage gets a nice return on their split.

Brokerages ARE NOT the red cross. We are a FOR PROFIT business. You as a new agent after putting in your years of service and training and paying out the big sums to start your own brokerage can then make the rules. Until that times once you haven't closed anything you don't have leverage to make demands.

Why don't you go to the office where your mentor is at?? Seems like that would be the logical choice.

The Anyelinas of the world do not understand what it takes to open and run a business. They do not understand that brand MATTERS to most people. And that she will be kicked to the curb after many listing appointments unless she works for a brand with high visibility in her area. And that BRAND VISIBILITY gets listings and has value.

Anyelina, instead of b'ing and m'ing, generate some real business over 2-3 years and then you can have a bigger split. A newbie agent is a piece of useless protoplasm, yet they feel the need to make demands. It's priceless...

Hey people, you have to read again what I have written here. I'M NOT SAYING THAT A NEWBIE (LIKE ME) SHOULD GO TO A 100%-SPLIT-BROKER. I'M NOT DEMANDING RIGHT NOW AS A NEWBIE A 100% SPLIT.
I have said, that as a newbie, its important to start in a big name broker firm, in order to have the training, the knowledge and experience. AND I SAID THAT'S WHY I JOINED KELLER WILLIAMS. IF I WOULD WANTED NOW TO GET A BETTER SPLIT, I WOULD HAVE JOINED ALREADY ANOTHER ONE WITH A 100% SPLIT.

Am I clear now? So stop with the comments that "go get some deals first, make money first and blah blah blah".

With this thread, I wanted to know: why agents, that has experience, that is having lot of deals, gets lot of leads, referrals and business and making lot of money, they're still working with brokers and giving them a hight cut, if they have the option to get a better cut somewhere else or either get their own broker's license. That's why I posted as an example a Company that offer 100% commission and only ask for a transaction fee. I wanted to know what do you think about these kind of local companies that offer this kind of deal.

Mr. G it seems that understood well my point with this thread, and have given me a good reason why top producers and other agents keep working with big companies: the cost of starting up and running an office. But here we have to mention 2 things:

1)It depends in what type of office we are talking about. Here in Florida, is mandatory as a broker to have an office, but a small and nice office is enough. It doesn't need to be a huge office. AND IS NOT MANDATORY TO HIRE AGENTS. That's only an option. So if someone doesn't want to deal with agents, with their training, taking care of them if they are doing things right, etc., doesn't need to hire anyone and can work alone, and just hire an assistant.

2)A top producer working with a big name company, still have to pay monthly expenses to have its own private office inside the big name company's office. So s/he is not only paying a cap (like KW) of $21K plus desk fees, plus copies, plus insurance, but also paying the expenses of having that private office.

If adding all these expenses, they still lower than running a small office as an independent broker, then that makes lot of sense of still working with a big name company.

But what about agents that are not top producers but are not newbies either? agents that have experience, that know what to do, that have good number of leads and referrals? Why they don't go to a company that gives them a 100% split? this was exactly my original point with this thread.

And here it comes the reason that gave Navarac: "THAT BRAND MATTERS" and "the grand visibility". I know that, people like "brands", and that's when I gave the example of the Calvin Klein T-shirt vs. a X brand name T-shirt. People buy expensive t-shirts just because its a popular name, even if both t-shirts are made with exactly the same fabric, the same color, the same model and complying the same function.

So the only reason agents decide to keep giving high cuts to these big name companies is because of the popular name? So the most important characteristic or requirement that a client chooses an agent is the kind of broker firm s/he belongs to?

You are the people with experience,that's what I posted this thread, to know your thoughts about it.

Thanks all for your comments!

When I was first licensed over 11 years ago I went with a GMAC office on a 50/50 split to start but it was also on a sliding scale. We had training but the best training I got was receiving my GRI and ABR designation in my first year. The GMAC franchise owner had 7 offices in my area and I moved to another office about 5 miles away from the first one after the first year...I absolutely loved that office and the people in it and we were like a big family and as many know that is hard to come by in an office environment like real estate. I was the top sales agent in the office almost every year since my first and had a much higher split after proving myself the first year...haven't did floor time in about 10 years and don't want or need to.
The GMAC franchise owner abruptly closed all offices almost 2 years ago and while I have even a higher split at my new office I would gladly take a cut to have a great office environment like was once had.
If you have a chance to talk to an agent in the office and not just the broker it might help...we even had prospective agents sit in on our office meetings when I was at GMAC.

Think of why a great runner pays a coach, or a great golfer pays a caddy. Or a terriffic actor pays an agent. Being an agent and a managing broker are two different jobs, not at all alike. The are linked for sure, but being a good agent does not mean you know how to manage an office and run a brokerage. Nor does being agood agent imply one has the desire to be a managing broker.

I am an agent with one of the most recognizable brands around the world and I have a 100/0 split. I do pay fees and expenses that at the end of the year work out to about an 90/10 split. Each year is different since my income is always different and my expenses go up and down. So you have to understand 2 things from that point..1) Top producers do not pay high splits 2) most top producers create an situation where they maximize their income. They may be with a company offering you one split, but them a better one. The broker has a strong interest in keeping power agents in the house. They do deals with more agents, do those deals well, and spread his good will around, hopefully growing his brokerage. If you are deadwood, the a drag on the broker. If you are new and he sees potential in you, he wil invest in your future as he is investing in his own future at the same time.

I can totally relate to what Summers said about the environment. I totally love my office - the broker and his partner/co-owner/associate broker are AWESOME.

The office is a very healthy atmosphere.

I would not work anywhere else. At all. I would have joined this company if the name had been Mom and Pop Real Estate - because of who the owners are and how they conduct business.

I have had offers to go to other offices w/ higher splits...but with those higher splits come other expenses that I don't have to worry about now (like signs, Realtor.com subsidy ). Sure I could probably buy a ton of signs and even pay R.com with what I "make" on the "bigger split" but I also would not be in THIS office. THIS office is A GREAT OFFICE....and I'm happy here. Very happy...

Oh now I understand some reasons why agents still working with brokers. One is because they love their office and staff. So what makes you think that in these 100% split-companies people won't love their staff and be happy there too? Agents can be happy there too! and making much more money there too!

Other reason: because they just don't want to be brokers.
Another reason, because how Doin'bpose said, top producers have very good deals with the broker, for a mutually beneficial relationship.

Doin' bpose: those examples of the coach, caddy, etc., fits more for an agent that is in a team. But agents that are not in a team, they don't really have that personalized "coach" and still have to give the broker a high cut. In my case, I haven't met yet the broker of my office, maybe she just doesn't want to deal with new agents? :-S

PA Roadkill: 100% of zero is zero. The same goes to 50% of zero is zero. Who makes that zero turned into a big number? THE AGENT, not the company. It depends on the agent to make money, to generate leads, to market himself/herself. It doesn't depends on the broker firm s/he belongs to. A good hard worker agent will make lot of money in a 100% split company (or any company), and a bad lazy agent would make zero in a big name company (or any company).

Thanks again to all for commenting!

Analogies go like this:
agent is to broker as player is to coach
agent is to broker as actor is to agent (or director)

Here is one more
agent is to broker as author is to editor


The relationship I am trying to convey is someone of talent needing someone of skill to direct them. Both parties are needed. Both have distinct roles.

I made the comparisons when I sensed you did not fully appreciate what the broker had to offer in the relationship. I wanted to draw out the importance of the broker.

Cheers

My broker is in the office more often than he is not.
His partner / co-owner / associate broker is in the office just as much or even more so. One or the other of them is ALWAYS available. There is always training, coaching, encouragement going on. Our weekly meetings are informative and not a waste of time.

What I've heard about other offices in my area, and when I see the caliber of the "professionalism" of some of these agents, it makes me wonder. Some have been in the business longer than me but have no idea how to properly fill out a contract or how to "count days" for deposits / inspections etc.

Just yesterday an agent from NY (licensed since 1997!) called me wanting to show my listing (PA.) After speaking with her I came to ask if she was licensed in PA and she said "I don't need a PA license because NY and PA have reciprocity, meaning I can sell in both NY and PA."

Sorry honey, no, your broker (a 100% office) needs to teach you about what reciprocity really means and that it's not a good idea to practice real estate in a state for which you are not licensed.

I have heard stories of back stabbing, of snaking other agent's clients, of having to lock up your desk and files to keep thieving agents out...of leads going to the "favorite" agents and the "favorite" agents getting the premium floor time slots...

I'm currently involved in a very difficult deal - could not handle it myself if I worked for an absentee broker. I have his full support and advice any time I need it.

Would another office provide what my office provides for me without a desk fee/technology fee/administration fee? No, probably not. I don't pay any fees other than my E&O insurance and $45 a month for a contact management system they subsidize and for Realtor.com enhanced listings.

Why would I stay here when I could possibly make more $$ at another brokerage? Because apart from one other local broker - a friend - in the business, my broker is the ONLY one I trust as far as integrity, honesty, competence, and knowledge are concerned. On top of that he is progressive and not a stick in the mud stuck in the "old school" way of thinking.

I could make more money at another brokerage, sure...but I could also get into trouble and have nobody to lean on, nobody to stand behind me and say "We've got your back."

Also I don't know that an office like the one the OP asked about is a scam - but I am suspicious of any company that does not have much of a track record. Several little agencies went out of business. I'd rather hitch my wagon to a definite winner than to a possible loser.

[quote=Anyelina]In my case, I haven't met yet the broker of my office, maybe she just doesn't want to deal with new agents[/quote]

That sounds wrong. To me.

When I was looking for an office/brokerage I interviewed a few brokers to see if we were a good fit. I wanted to know if they would be interested in taking me on, and what kind of training and support I would get. And what I would pay out of pocket.

Of course part of this process was for me to find out if I like the broker's personality, and vice versa. I only went to one office where I wasn't "allowed" to meet the broker; I was only permitted to speak with a recruiter. I didn't choose to work there.

Wow!!

Now I understand you guys much more! and hope you understand me now too. I see how important it is the environment, the people you work with, and especially the support you have directly from the broker. I don't have that! there are other people that are willing to help me (if they are not busy of course) but definitely not the broker! it seems that she wants to deal with the top producers and not the newbies! actually I don't know who she is... :-S

Anyways, the other people there are nice: the 2 receptionists, the mortgages consultants (they are so cool!), there is a real estate attorney in the office (which I think its great), there is a lady that is training me in contracts, to understand almost every single word in them! (love her!) and this is in my opinion the only good training I'm getting from this office, because they don't offer other good training, everything is about prospecting by memorizing scripts for cold-calling.

I think a good training would be: learning step by step all the process from the listing presentation to the closing. And the same process as a buyer's agent. This process should include: how to do listing presentation, how to market, how to negotiate, how to understand and fill out the contracts, what to know about inspections, about mortgages, how to deal with banks/lenders, how to close, how to do the follow up, etc. Am I asking too much or what? because that's exactly why I think its too much giving 35% cut to a broker who is not willing to give this kind of training! now you understand what I'm saying?

Perky! you know that today I was talking to another Realtor, he told me that he sells CMA's to other Realtors, because they don't know how to do it! haha! Realtors that have been years in real estate! and he also told me, that there is a Realtor (lady) that calls him to help her opening the lock boxes and he charges her $15 each time! haha! I can't stop laughing!!

Doin'bpose: Now I understand your analogies, I haven't understood it before because... I don't have that kind of relationship with my broker! haha!

I think you have to make your decision based on what is most important to you:

If money is most important - go for the 100% $295 per deal company.
If peace of mind is most important - go for the traditional office where you feel most comfortable.
If socializing is most important - go to the 50/50 split brokerage where agents hang out at the office all day, go to lunch together everyday and drink a lot of coffee together.

^PA Roadkill...in most offices that would be beer or wine. LOL

FWIW - our office is very sociable but we don't go to lunch every day (sometimes we do on Tuesday, meeting day, cause we pretty much spend the entire day at the office w/ the sales meeting, caravan, then afternoon training/coaching sessions that we choose to go to). I actually could do w/ less socializing. LOL

For me it's more about peace of mind on many levels.

That takes the cake! That's even funnier than the CMA thing...OMG! How in heck can you not open lockboxes? Or does she not pay for the subscription for the electronic key? The $15 a pop adds up pretty quickly!!!!!!!! To more than the yearly fee for the electronic key! How dumb!

Sometimes I'm showing 15 - 20 properties a day! That lady must be a REAL top producer! ROFL

[quote]Perky! you know that today I was talking to another Realtor, he told me that he sells CMA's to other Realtors, because they don't know how to do it! haha! Realtors that have been years in real estate! and he also told me, that there is a Realtor (lady) that calls him to help her opening the lock boxes and he charges her $15 each time! haha! I can't stop laughing!! [/quote]

While very sad.......this made me laugh out loud. :D

When I drive by the big box 50/50 split offices in my area, there's always a lot of cars parked in the employee section of the parking lot. Any day, M-F, the lots are pretty full. I can't believe everyone is there because they wrote an offer the night before or have a closing in an hour.

And these office use the agents as sort of unpaid employees, having a "duty" person doing "opportunity time" hoping to find a buyer or seller from a call in.

I have a friend that formerly worked in our office that went to one of these offices. Once a week she sits there and covers phones. I asked her after a year how much business she garnered from floor duty and her answer was NONE.

I remember 7 years ago starting out as a new agent.You would come in and go to lunch and hang out in the office.When I got my first check 2 months later many of the new agents or slackers looked like you won the lottery.

When they saw that HUD 1 with the check attached they were jealous.There were a few top producers but they would come in and have about 20 folders on the desk make calls for an hour and shout some stuff to the secretary and then leave.

Rest of the agents in the office would talk about how rich they were going to be or some new idea that would blow everyone out of the water.The others would play Tetris,solitaire,and take quizzes on the computer while drinking coffee.Most would leave the business within months.

Those times were priceless.

Our office has a full time receptionist at the front desk 7 days a week until 5pm (except on Sat/Sunday, they are here till 4pm or so).

I have gotten quite a few leads, sales, and listings (that sold!) off floor time. Our phone rings quite often and it's more than just other agents making appointments.

The first office I worked - floor time was a total waste. Nobody ever called except for other offices to show our listings. It depends on the office. My office: floor time = definite opportunity time.

It wasn't so terribly long ago that these same Agents were fighting over floor time. And when the market turns, they'll all want to be there again !

I still think that there's a real benefit to the camaraderie that a larger Office environment can engender . . . . the internal competition; the sharing of successes and the agony of defeat; the learning from one another's experiences. It's like there's always a little bit of symbiotic energy that comes out of those Offices where they feed on one another. I don't have much of that anymore (since it's now just my Wife and I) so I am periodically a mite envious.

Have you ever been on the receiving side after criticizing one of the other Members of that Office's Sales people? They should all gather around to defend one of their own, like a wounded Calf in a heard of Buffalo, and usually they do.

I can also sense when things are coming apart and they begin to complain about one another to an "outsider" like me. That's when the Family has an internal cancer and will soon come apart.

But I digress.

^ What Vermont said.

I think what is important is a balance of everything. An office that offers: LEADS, good training, good support, and the commission is not less of 70%!

Am I asking too much? lol

Well, I think I'm not. I just found a 40-year old local company, (different from the one I posted at the beginning of this thread), Their expertise is Rentals, but of course, they support on sales too (residential and commercial). They do all the marketing and bring ready qualified rental leads to the agents. The split is 75/25. No agency/franchise fees. Weekly pay periods with bonuses and incentives. And for me, as a newbie with no experience, I think its a good way to start.

Right now, South Florida is experiencing a very hectic rental market. This is due to several factors: the high foreclosure rate has turned former owners to renters in record numbers; the oil spill in the Gulf of Mexico has directed Seasonal Renters to the East Coast whereas they would normally have been on the West Coast; and high foreclosures in properties owned by investors have taken inventory off the market. So, I think its not a bad idea for me as a newbie to work with rentals now.

I don't think that the big name companies are the only ones that can give a good training and support. There are also serious and good local companies that can give the same good training and support.

I know this is an old thread, but I wanted to comment.

There are lots of companies that offer 100% commission. This one says $395 per closing with no surprises. Yet, if you read their contract they also charge a processing fee of $345, which agents quite often pay out of their commission. Usually the 100% companies either charge a processing fee or a monthly fee to the agent.

If you want to go with a 100% company I would suggest a google search and look at several of them.

unless a company has a bunch of top producers or they are completely virtual and very low overhead and little support for agents, i don't see how they can survive on a small fee per closing but more power to them

You get what you pay for. If you're a seasoned pro who doesn't need a great deal of support, then 100% brokerages are going to be for you. I don't think these are necessarily the right places for new agents, though.

Considering my time spent reviewing contracts, time for me (or my assistant) to deal with filing/organizing, E&O insurance, and other miscellaneous costs, it costs about $350 a transaction just to break even...And that's running an entirely virtual operation. (Hence, I'm super picky about whom I would hire.)

You therefore need to have an army of hundreds upon hundreds of agents--all of whom are regularly producing--if you're going to be able to offer anything above the bare minimum support to them.

I offer a low monthly fee and an all-inclusive transaction fee. Alot of agents like this especially since values are down. Agents need more of their commission just to stay in business.