Most real estate companies are what I call "traditional" real estate companies. What that means is that there is broker (generally the owner) and there are agents who works for the broker. The broker may offer such things as office space, signs, and someone at the front desk to answer phones. They may be other things, too. Each brokerage is different.
Generally the broker is a "competing" broker which means that they also list and sell houses. In my view that can become a problem especially if the name of the company is John Smith Real Estate. If someone calls and wants to buy or list a house, who are they going to ask for?
Typically, all of the signs are the same and if you are the listing agent you put a "rider" on the top of the sign with your name and number so that if someone is interested in your listing they have the opportunity to either call you or call the main office number on the sign.
In a traditional real estate company, the agents share their commissions with the broker. I couldn't say what split each company has or if each agent gets the same split within the company. So the commissions that are paid to the broker pays the overhead expenses and the rest is profit that belongs to the broker.
As I said, there are many variations among traditional real estate office. You will only know what they are by asking each office independently.
The company that I work for is not a traditional real estate company. It is not "broker" centric. Instead it is "agent" centric. What does that mean?
It means that the owners (not the broker) believe the company is about the agents. The agents are the company and are treated as stake holders. We have a council in our office (market center) that makes internal decisions about how our market center is run.
We have free training in our market center nearly every day Monday-Friday. We bring in trainers from all around the country to teach on current market trends, ideas on how to grow your business and tools to use to increase your income.
Speaking of business. Each agent is in business for themselves. For instance,
we are encouraged to have our own signs with our phone number in big numbers leaving our market center's phone number the smaller number. We can design our signs with our own pictures or caricatures. Our company believes in each of us growing our own business.
We have a broker in our office as required by the State of Texas. Our broker, however, is just that. Our broker. He does not have his own business. He is not growing his business and when people call about a property he is not asked for.
Each agent has a split with the market center until we reach a certain point in our anniversary year and then there is no split. We keep it all.
The split that comes to the market center pays all of the overhead and then there is a profit. Unlike a traditional real estate office, our owners keep have of the profit and gives back to the agents that have invited people into the company the other half of the profit. Really? Yup. It's true. We are true stakeholders and are all interested in the bottom line.
Speaking of bottom line.....we are an open book company. All agents are welcome to look at the books and see where the money is going.
We are an international franchise company with a culture that promotes a big family atmosphere. We have charitable organizations within each market center and an international charitable organization.
For me the list of reasons goes on and on. I chose a non-traditional real estate company because I like to grow my own business. I like that the owners give back half of their profit. And I like being a part of a big family.
Before you decide on a company, come and see me. Give me a chance to show you around and then you can decide which type of company you would rather be a part of.