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Is it time for me to switch?

By
Real Estate Agent with KeyRealtyGrp.com

Well today it finally happened.  The 'other' shoe dropped.  My broker informed me today that he wants me to begin picking up the $400 monthly pass-through costs of being a real estate agent.  I'm not sure what to do.  My agreement is for a certain percentage split with the broker up to an already agreed upon amount.  Now he wants to change that agreement.  

Should I change brokers and move to a new office or should I pay the $400 a month.  I realize many people may much higher desk fees per month, but that is not my point.  The original agreement is no upfront fees based on the commission split.  

I will say that I am really only looking do real estate part time.  I also realize there are costs associated with me being an employee.  If I'm not producing then the broker is not recouping any of their costs - I get all that.  Last time I checked not too many brokers were hurting for money.  Last time I checked MY broker was not hurting for money.  

Now what to do.  I hate the idea of switching brokerages just to switch, and I don't like the idea of giving up any more commission that I have to.  At the same time I'm not really sure that I am willing to pay $400 a month to work for someone on a 100% commission basis.  

Who has a program similar to RE/MAX?   Do I go to another RE/MAX broker or do I change companies all together ?  Should I join a team or stay on my own?  Too many questions to think about.

Comments(8)

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Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce
  Real estate is ver difficult to do part time and do well...survey your market...you may find brokeragesn who welcome part time agents....in some that means you earn less and the brokerage makes more...no desk fees.
May 06, 2008 02:48 PM
Steven Keefe
Coldwell Banker Sky Ridge Realty - Lake Arrowhead, CA
Most brokers are hurting for money in this market.  Brokers have to do what they have to do to keep the doors open.  If they are being unfair, leave, if it is a fair deal, pay it and get to work.
May 06, 2008 02:50 PM
Susan Davis
Austin, TX
Excellence Advocate

Hi Tony, Have you ever looked into Exit? I firmly believe it is the best in the industry. You ought to call Brad and just talk with him. what have you got to lose?

Bradley Fennell
Regional Owner
Cell: 859 866 3231
Alternate Phone: 866 781 3948
Email: brad@exitohio.com

I think you will be impressed!

Susan

 

May 06, 2008 02:54 PM
Barbara Carter
Century 21 Alliance Realty Group - Highland, NY
Serving Your Real Estate Needs in the Hudson Valle
Tony- It sounds like you need to hear about Exit Realty- No Desk fees ever! With a potential to make more than 100% with sponsoring residuals- It is difficult to switch offices but when you do make sure you will be putting yourself in a better situation. Exit is by invitation only! Consider yourself invited!
May 06, 2008 02:54 PM
Ralph & Susan Alvarez
REMAX Benchmark - Las Vegas, NV
Real Estate Agent Las Vegas NV

 

There's no free lunch. My broker had to do the same. When times are good he would try to help agents by paying some of the fees for them and recoup on the back. When things go slow he had to change and ask for the fees upfront. He later went bankrupt, he had 3 offices. When money stops the bills don't and they build up fast. I was sorry to see him close, he was a good man.

Brokers are entitled to make a good profit after all their name in on the line for contracts they never even see. I wouldn't want that position.

You have to think.Do I want to be IN BUSINESS or Just In the Business.

Ralph

May 06, 2008 02:59 PM
Linda Lipscomb
Linda Lipscomb RE/MAX Lexington Henderson County TN - Lexington, TN
731-695-1118, Lexington TN Homes

It all sounds great...but Tony, if you are not producing....does it really matter what brokerage you are with.  Eventually, it will be the same end result.  I think you need to decide if real estate is the business for you.  If it is, get fired up, give yourself a kick in the ass, and go to work.  If not, move on.  By the way, RE/MAX is by far the best franchise.  Fees or splits, everyone pays. Bottom life, 100% of nothing is still a big fat zero!!!!   Best of luck with your decision.

May 06, 2008 03:11 PM
Bo Buchanan
Blue60.com - Oswego, IL
Blue60.com Directory, For Real Estate Pronulls
Do you have the agreement in writing?  If it's in writing - I don't see how the broker can change it mid stream.
May 06, 2008 04:38 PM
James Wexler
wexzilla.com - Scottsdale, AZ

I am with Coldwell Banker and my brother is at ReMax - we both started with other smaller companies with high payouts and low fees

The fees are tough to swallow , I understand. However, the business we recieved to have a brand like ReMax or coldwell has been worth the price for us.

Aug 08, 2008 05:21 PM