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#372129 - 04/08/11 03:20 PM
Re: Changing Firms
[Re: PaRealEstateAgt]
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Member
Registered: 01/17/09
Posts: 49
Loc: us
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I just switched recently, I was with the same company for about 5-6 years and was on a 50/50 split and they would take out bull sh### fees, also located in pa. The only thing you should be worried about is your listings because they belong to the broker. I was able to bring them with me because when I signed the contracts I new I would be leaving so I just did a 30 day contract and was able to get them out that way, and bring them with me with the Asset Manager permission. Now that I am at my new company it is 110% better. I just pay a flat fee for the year and keep 100% of my commission. If you have a bunch of clients that is the way to go. My last commission check that I got from my old company went like this,
1250 total commission
50% to broker (625)
Broker Fee that client does not pay comes back to me (250)
Check writing fee (95)
That left me with 280 take home, thats why I left. I was a fool for staying there to long.
As far as a mentor, I did not have one, I just would ask questions. Fake it Till you Make It.
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#372151 - 04/08/11 10:32 PM
Re: Changing Firms
[Re: PaRealEstateAgt]
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Member
Registered: 10/02/09
Posts: 207
Loc: Salt Lake City, UT
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I'm a big believer in the type of brokerage that you pay a flat fee per transaction instead of a percentage. When you really think about it, what in the world could they possibly provide for you that is worth 50% of your income? Heck God only wants 10% for salvation, what in the world could they give you for 50%? LOL
Go with one of these companies and use the savings to hire the best real estate coaches out there. You will be far better off.
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#372154 - 04/08/11 10:48 PM
Re: Changing Firms
[Re: Home Seller Guru]
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Veteran Member
Registered: 01/19/06
Posts: 994
Loc: New Jersey
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I'm a big believer in the type of brokerage that you pay a flat fee per transaction instead of a percentage. When you really think about it, what in the world could they possibly provide for you that is worth 50% of your income? Heck God only wants 10% for salvation, what in the world could they give you for 50%? LOL
Go with one of these companies and use the savings to hire the best real estate coaches out there. You will be far better off. Or, forget the coaches, substitute common sense, and come out even farther ahead.
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#372167 - 04/09/11 04:58 AM
Re: Changing Firms
[Re: PaRealEstateAgt]
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Major Contributor
Registered: 11/15/06
Posts: 2050
Loc: The Middle of the Interstate
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This is not directed at anyone in particular, just a general statement:
Three months in the business (or even a year) is not really a good guage of where you should be working or if you should change brokerages. Commission splits don't mean anything if you don't have closings. To me, the true test of a brokerage is more about the management, the other agents and the general atmosphere at the company.
I had an agent leave in October for a 100% company (we are 70/30) where the new broker promised 6 months of no fees, then the normal which are around $1000 per month. Well the six months end now, so it will be interesting to see what happens, because there will be a bill from the broker in the mailbox the first of every month whether you sell or not.
I joined a brokerage after about 18 months in the biz that was 100% (in 1998) because the broker was accessible and the office was pretty much filled with veterans, many of whom would go out of their way to help and still have friends that work there. The downside was that minimal training was provided and the equipment available at the office (computers, fax machine, copier, etc) was minimal.
My suggestion is to talk to several agents that work in that firm (invite them to lunch or for a coffee break - one at a time) and try to get a feel for the office in general. Ask open ended questions like "What's the best training session you attended here" or "Tell me about successes you've had from floor time" and let them talk. True feelings will come out.
_________________________
Broker-Owner Thirteen Years REO Experience
GRI,CRS,CRB,e-Pro
Some days I feel like the bug, other days I feel like the windshield
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#372186 - 04/09/11 10:14 AM
Re: Changing Firms
[Re: super realtor]
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Veteran Member
Registered: 01/19/06
Posts: 994
Loc: New Jersey
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Due to the entitlement mantra of new agents that expect ALL THE TRAINING and MENTORING for free and wanting the 100% split or close to it I don't take agents anymore.
It is simply a waste of my time.My commission checks on my deals run 5 to 6 figures and since I am the broker I keep it all.
You have to understand everyone and their brother is trying to build up these 100% companies now.It is very expensive to have them unless you are virtual and even then it is a pain.
Many of these agents are working full time jobs,or their unemployment tiers are running out and they are wanting to get back in the game,or they are part - time.
This all equates to rusty agents that haven't completed a deal in a long time or new agents who know enough to be dangerous.With a 100% company you have to do volume to make the numbers work.I found maybe 2 to 3 out of every 10 agents would have a closing that month for 300 bucks.
So for 6,000 to 9,000 of income to the business on a virtual brokerage I would have to be at around 100 agents or more.Plus on top of that most of these agents didn't have a pot to p*ss in.If they did they were a licensed investor trying some crazy scheme to make money and put the brokerage in hot water.Many of the others you would constantly get child support mandates or IRS demand letters to send any commission money going to the agents to the government.
Also the agents would get license suspensions for student loans gone bad or they did not fulfill their continuing education credits or pay license renewal fees.
You have to remember these agents are like hamsters running on a wheel trying to make a nut before running out of gas and falling over.
From that point on I learned I didn't want any agents.I just refer out business I don't want or is out of my area and I don't have headaches that way. All very true. This profession attracts a lot of dreamers, a lot of well-meaning losers, and very few hard workers. My broker is getting up there in years and has repeatedly approached me about buying the brokerage and carrying on the business. My response is: not interested. Managing a bunch of agents is akin to running a perverse adult day care center, and that is not something I want or need at this stage in my life. I'd rather just list...
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#372231 - 04/09/11 10:25 PM
Re: Changing Firms
[Re: PaRealEstateAgt]
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Junior Member
Registered: 04/09/11
Posts: 4
Loc: LAS VEGAS
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Unless your broker is giving you leads then you shouldnt be paying any brokerage your money.
I started with a 100% broker and I payed 395 total.
The first deal i closed my check was for 5500.
I learned myself, I just got a list of what my broker required from buyers and the list for listings and practiced writing a lot of offers.
The broker Im with now just charges me a flat fee.
Dont give any broker 50/50.
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#372270 - 04/10/11 01:49 PM
Re: Changing Firms
[Re: PaRealEstateAgt]
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Major Contributor
Registered: 11/03/07
Posts: 2335
Loc: Northern Colorado
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I disagree that unless they are giving you leads you shouldn't pay any brokerage money. A brokerage can give you more then leads. They might give you an office, some advertising allowance, there might be transaction coordinators, fax and copy machines. Continuing education. Promotional materials. Cheaper advertising options then you could get on your own. That said do you need any of that? No. One can get by without all that. I do.
_________________________
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#372277 - 04/10/11 06:17 PM
Re: Changing Firms
[Re: PaRealEstateAgt]
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Major Contributor
Registered: 04/12/08
Posts: 4726
Loc: Vermont's North-East Kingdom
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". . . most of the training is stuff that a person would have look into prior to deciding this career path. ". . . refused to go to the main office for training . . ."
_________________________
Dale C. Hittle of GOLDEN RULE PROPERTIES in Glover, Vermont
Where We're Always Striving To Put Together "THE FAIR DEAL"
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#372280 - 04/10/11 06:42 PM
Re: Changing Firms
[Re: PaRealEstateAgt]
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Major Contributor
Registered: 07/27/06
Posts: 3699
Loc: Dayton Ohio
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WOW, What Vermont said^^^^^ I agree Colobroker, there is more than just leads to consider. My consideration was which firm will sure up my foundation to ensure my first year won't be my last year. As most of you know, starting out is hard. And from what I see, being able to sustain growth requires being on top of market trends and working your a** off for even minimal gains.
Also, I may have left out, that I did rock the boat a bit at my current place when I refused to go to the main office for training. But gas prices went up and I'm on a budget. Besides most of the training is stuff that a person would have look into prior to deciding this career path.
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#372295 - 04/10/11 10:10 PM
Re: Changing Firms
[Re: PaRealEstateAgt]
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Veteran Member
Registered: 01/19/06
Posts: 994
Loc: New Jersey
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I agree Colobroker, there is more than just leads to consider. My consideration was which firm will sure up my foundation to ensure my first year won't be my last year. As most of you know, starting out is hard. And from what I see, being able to sustain growth requires being on top of market trends and working your a** off for even minimal gains.
Also, I may have left out, that I did rock the boat a bit at my current place when I refused to go to the main office for training. But gas prices went up and I'm on a budget. Besides most of the training is stuff that a person would have look into prior to deciding this career path. If you refused to go for training due to gas prices, may I humbly ask you to leave the business tomorrow? It will save you several months of failure and floundering. Just get out now and move on to the next chapter.
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#372313 - 04/11/11 08:02 AM
Re: Changing Firms
[Re: PaRealEstateAgt]
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Member
Registered: 09/18/09
Posts: 45
Loc: Poconos of Pa
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I understand this being a sore spot with brokers. I had no illusions it would go over well. I should have been more specific its not actual cost of gas but the opportunity cost that I was speaking about. I did plenty of research before starting and so far I'm ahead of my plan, yet still to early to call it a successful launch. My goal from the start was not to rely on broker leads if I get one it's a plus if not oh well. The way I see it (and I could be wrong) the only way to succeed in this business is to create my own leads. My plan is to generate listings and market them to the fullest. I could spend time 8hrs plus a week training or I can spend those hours marketing and prospecting.
I may fail but quitting isn't going to happen. I have a pretty good feeling you'll see me around next year. Yet if I do fail kindly drop some change in the bucket if your passing by.
You sound like you're on the right track to me. You are 100% right, in this business, its all about your own leads, your own efforts and your own exposure, anything the brokerage gives you is just gravy. I recently left my brokerage as well. There it was 50/50 but had the C21 fee of 8% right off the top. Now I am 55/45 with only a small monthly fee for Re/Max, instead of the 8% off the top.
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#372474 - 04/12/11 10:11 PM
Re: Changing Firms
[Re: Dave Kovaleski]
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Junior Member
Registered: 04/12/11
Posts: 8
Loc: GA
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Just to throw my 2 cents in, I recently switched brokers after a few years. I've moved into appraisals now and maintain my license to facilitate getting MLS services and occassional real estate buy/sell clients. The new broker I went with charges $23/month and an 80/20 split which was a huge savings over my prior arrangement. My question is, what value does the name or reputation of your broker bring to you as an agent? Is it important to go with a well known broker or does it really matter?
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#373582 - 04/23/11 08:47 PM
Re: Changing Firms
[Re: JCH]
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Moderator
Veteran Member
Registered: 01/13/10
Posts: 726
Loc: Maui, HI
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Just to throw my 2 cents in, I recently switched brokers after a few years. I've moved into appraisals now and maintain my license to facilitate getting MLS services and occassional real estate buy/sell clients. The new broker I went with charges $23/month and an 80/20 split which was a huge savings over my prior arrangement. My question is, what value does the name or reputation of your broker bring to you as an agent? Is it important to go with a well known broker or does it really matter? Particularly when dealing with high-end clients, they will go out of their way to work with a brokerage that is known for having top-notch agents who specialize in that sector of the market. And I know that if I was not involved in real estate as a profession, that I would prefer selling/buying through a well-recognized office rather than a one-man shop. My 2 cents.
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#373850 - 04/26/11 05:17 PM
Re: Changing Firms
[Re: Maui]
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Member
Registered: 06/09/07
Posts: 476
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Yes, a well known top shop with a good reputation is great, but if the broker is ending up with most of the gold, forget it.
Early in my career I was a sales manager in a multi-office company with good agents, lower quality agents were asked to leave. Almost all agencies at that time were single office. So at listings we played that card of size and recognition. The sales managers also had their own clients so we did compete and do presentations.
Anyway, very early on it dawned on me that all companies are the same size, one. Let's face it you get a listing in a company of 300 agents the other 299 are not going to rush to your desk to assist you in marketing and servicing that listing. The seller really has one person looking out for them, you!!!
I opened my first office in the high priced area. And that was the first thing I covered in my listing presentation. My first listing of a mansion was the top attorney in large firm and I asked him if he were to use his firm who would he want handling his case. Of course the answer was him, or at least partner x. I said what would be wrong with using anyone of the others in the firm after all they all work for the same firm so of course they all must be equally competent. Or what is known as come into my parlor said the spider to the fly, case closed, listing taken.
At the end if the last century, I closed every office and keep a small one with me and 6 of my best agents. It killed the national big boys when the real estate board had them take their were #1 in the area banner off their ads, etc., and having a 7 person office with a new name take over their spot.
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