Our industry does NOT like to acknowledge it, but lots of agents are part timers. It’s an understandable denial since the real estate industry is so driven by image and appearance. Often times the brokers that many agents join will give off the impression that every agent is kicking royal you-know-what, while reality may show a very different picture.
And to make matters worse, the larger the company, the more likely they are to charge you a high price simply for the privilege of belonging to that company, or for the honor of using that brand name. They might mask those fees by requiring you to pay Errors and Omission Insurance (E&O). We have seen the annual fees as high as $1800, whether you sell any homes or not. That’s insane on it’s face, yet surprisingly common in our industry.
Then there are brokers who push you to attend seminars, hire coaches, subscribe to “success tools”, all at a considerable expense. And this often comes with unwanted pressure to sell more homes.
However, an astonishing 27% of all Realtors will sell between 0-5 homes per year. And quite honestly, whether its 1 sale a year, or 100, your sales are the result of relationships you have created and you as the agent are entitled to reap the reward that effort produces. One sale in California might easily net your brokerage a commission of $10,000.00, or $20,000 or more depending on the sales price. And this is where most part timers sacrifice much of their money to their brokers. Let’s examine how:
The average REAL split share kept by most brokers, when you factor in all the added costs such as E&O insurance, franchise fees, monthly charges, desk fees, etc. is somewhere around 35-45%. Remember that commissions are earned by BROKERAGES. Brokerages have splits with agents. So what about that $10,000? You get around $5500-$6500. And the broker profits by the simple fact that YOU had a relationship with someone. That someone trusted you to help them buy or sell a home. That sale closed. And that broker was positioned to profit handsomely as a result of your effort.
Dylan Raquel aims to change ALL OF THAT. Our brokerage will be of real value to you by doing these, among many other things: