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Does A Broker Deserve To Make A Profit?
 
 
Brokers Are Often Broke!

 
For many years, there has been increasing pressure for real estate brokers to reduce their fees, enhance the technology and agent services they provide, and provide increased “splits” with their sales force.
All fine ideas, if you are an agent.
But, from the broker’s standpoint these issues appear a bit different.
Small brokerages, if they have an incredibly low overhead, can compete in a couple of these areas... but not in technology and agent services.
Large brokerages, where hundreds of agents are on the rolls, often do provide for most of these needs in their business models, but often are deploying many under-trained, unskilled agents ot into the public without much in the way of supervision.
Medium-sized brokerages are perhaps hit the hardest, because they are required to provide “back-room” staff, and other administrative personnel. Their overhead is usually pretty high, and they are under constant threat of their agents demanding greater “splits, technology, and agent services. Since agents are independent contractors, and generally in demand, all they have to do is sign a form, or “click” a box on the Internet, and “poof,” they are now working at another brokerage.
So… ... more

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