Which Broker is Best to Join, A Traditional or Internet?
When it comes to traditional brokerage there is no shortage. You have your big names such as Century 21, Prudential, Keller Willaims, ReMax, Tarbell, ect. You have a choice to make when you decide to get your real estate license or maybe your thinking about changing brokers. Have you consider a internet broker? What is a internet broker?
What's the Benefits of a Traditional Broker verses a Internet one?
The benefit of a traditional broker is definitely the training. When you first start they teach you how to get your license, the basics such as contracts, and how to deal with sellers and buyers. What you need to get business. Which is great. They have a name, which prospects are familiar with and trust which is also good. But when it comes to branding your name, this is what should stand out! Most of these companies really want you to promote their company. I can't blame them, if I owned a brokerage that would be my goal. Some people need others to help them, motivate them and some just need constant guidance which joining a big name broker brings. So this might be a better fit for you.
The benefits of a internet comes down to one thing, commissions. Yes, you don't have the name brand company but as I mention before it really should be your name your branding. A internet broker is just that, a company that operates from the internet. They don't have a office you go to because they are virtual. What they they lack in traditional benefits they make up in commissions. A traditional will usually start you off at 60-70 percent of your commission where a internet company will charge you a flat fee for each transaction. For instance if you sell a home for say $500,000 your cost would be around $500 plus E & O Insurance, where as the traditional broker will charge you if it is 3 percent commission which totals $15,000, their cut,and just let us say; 20 percent would be $3,000. So you would get $12,000 and your Broker would pocket $3,000. The internet company you would get around $14,200. Could you use a extra $2,200? Also traditional has fees such as office dues, print fees, yearly pay up front E & O insurance, desk fees that could cost you up to $1,000 or more a year not counting your MLS, C.A.R. and Realtor board fees. It might makes sense if you do a lot of business, but if your only doing a few transactions a year your better off with a internet company.
When a Internet Broker Might be Best
With a internet company you pay none of these fees, except the must have fees such as MLS, C.A.R and Realtor board fees. In the end you make more money even if you do a lot of business. The real estate business is a individual business unless you have a team. We all work for ourselves and joining a internet broker gives you a little more freedom, almost like your the Broker.
Many Realtors have left the business when the economy crashed and when real estate was moving at a snails pace. Most had to leave their traditional brokerage because they could not afford the fees. With a internet company there are no fees. You can hang your license with them without the pressure of paying any dues and fees. The only fees are the board and MLS which is not bad if you do at least a couple of transactions a year. But in most cases you don't even need to join the board, which is great if your not doing any business now.
There is no right or wrong answer which is best for everyone. The fact is that agents who left the business did not know they had a choice. They couldn't pay the fees and they just let their license expire. As we know, real estate is not going anywhere, people are always moving and always buying, so a internet brokerage might be a good fit for you.
To learn about more benefits of joining a internet broker visit my blog on "Why Choose Real Estate eBroker the Internet Brokerage".
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