With the current real estate boom, those looking for employment in the real estate sector should have no problem finding a suitable real estate service.
Tips to help you find a job in real estate service:
- Make a list of the agencies you are interested in. Pay attention to the way they advertise, the way they represent themselves and to the public image they’re trying to project. How do you want to be perceived and represented?
- Make appointments with the broker-in-charge of each real estate agency on your list. Larger firms may have recruiting managers.
- Find out how many real estate agents were hired last year and how many of those agents are still employed at the agency. A high turnover rate could indicate slow business, lack of training or a difficult owner.
- Ask if all agents are scheduled for floor duty and find out how the scheduling is done.
- Ask the broker for a list of start-up expenses. Are you required to join local or national professional organizations?
- How are advertising expenses paid? Are for sale signs provided to agents free of charge? Who pays for long distance telephone calls to owners? How about photocopies or stamps? Does the firm provide in-office computers, or are you expected to bring your own?
- If you are talking with a franchised agency, be sure to ask what percentage of each sales commission is deducted and sent to the franchising company.
How commissions may vary by real estate service
Normally, commissions are divided, with a portion of each going to the listing office and to the selling office. Each office may then pay its participating agent a percentage of the total received. Commissions vary from office to office and in different parts of the country. The percentage for land and commercial property is often higher than the commission for the sale of a home. There are real estate offices where agents pay a monthly fee for brokerage services and office space and then keep all of the commission earned on sale. This option works best for agents who have an established clientele and regular closings, because the monthly fees can add up, especially when every agent is responsible for every expense. Some offices pay agents a higher percentage on in-house sales, where both the listing and selling agent are from the same office. The agency makes more because it does not have to split commission with another agency.
How a franchising real estate service works
With a franchising agency, the commission paid to agents within that office is decreased by whatever percentage the franchising company charges. For example:
Sale price = $150,000
6 percent of sales price = $9,000 to your office
Your share of the total comes to: 50% = $4,500
Wherever you choose to work, make sure you understand the benefits and costs of your decision. With careful planning and an understanding of how the business operates you can be a confident and competent player in real estate service.
By Virginia Zignego