Entry by Trent Seidl

Becoming a Broker

  4 Comments

Hello fellow ACERs. 

I am aware of the requirements to become a Broker. I am looking to speak/email with someone that can go over the costs associated with opening my own company as a broker independent of a franchise.

Any information or help would be greatly appreciated.

Thanks

Trent

trent.seidl@yahoo.com

4 Comments

I worked at one time for a small brokerage.  There were a lot of reasons that I was looking to change.  Firm did a lot of things that I questioned and I felt that they seldom had the clients interest above their own.  So, I left and opened my own shop.  It was exciting, challenging and expensive.  More than that it was unbelievably time consuming.  Doing all of the things that need to be done that as agents we seldom see.

14 years ago I closed the office and joined Re/Max.  Fantastic! All the tools, training, back office support, regional, national and FREE leads thru the largest branded real estate web site. ReMax.com.

It used to be that most Remax offices only took 100% agents.  Those that chose to pay a hefty monthly fee to Remax and then you kept all of the commissions earned.  In this economy and market they all are offering numerous types of commission deals.  Most agents I know are in the area of 80-20 split with their brokers.  YOU CAN'T AFORD TO OPEN YOUR OWN OFFICE!   I would never ever try to go it alone again.

Find a broker with a strong national brand that will work with you, you will be way ahead financially and be under a lot less pressure.

I agree with Dennis Kindschi that working with a big name company would be better for a beginner. They have other experienced agents in the office that may be willing to answer perplexing odd questions. After 20 years, I find unique situations in many transactions.  Additionally, there is the issue of how to manage back office paperwork.

However, I have very strong opinions about how to market real estate consulting.

Firstly, you need to make real estate consulting stand out from the crowd. I decided to "slap them in the face" with the difference. First contact has to show that they need to know more before turning the page. I do not advertise properties for sale on my website. A video on the front page of my website shows an ACRE video. My postcards push hard on "consumer choice" and "rebates" and "sales commissions are optional". I discuss transfer of risk.

My first phone contact I discuss rebates and "no sales commissions", just to get their attention, even though further discussion my indicated that the consumer wants a traditional transaction and traditional compensation on contingency. 

You will need to create Non-traditional marketing inside of a traditional franchise.

 

Trent-I'm not sure if you are a new agent since at least in my area you must have been a full time agent for a minimum of 3 years prior to being eligible to sit for your brokers license (also 180 hours of course credit too). 

I left RE/MAX last September and went out on my own as an indpendent broker.  The costs are not high but you need to make sure you have the systems in place to meet the requirementf of your state board.  E&O insurance costs less than $1000 per year.  If you can work from home then you don't have any office overhead expenses if not then you need to research and price office or shared office space.  Make sure you set up the appropriate bank accounts and hire an accountant to keep your taxes straight.

I regularily attend classes at our local association to make sure I am staying on top of changes and we are fortunate that there are monthly small brokerage brown bag lunch meetings.

Start a spreadsheet of all of the things that may be covered by your current brokerage that you will need on your own and then decide whether you are ready and can afford to be on your own.

Cindy

thank you so much for your comments.  in IN i can sit for my license after 1 year as agent.  on average for those who have started their own firm, what are your average monthly expenses?

 

thanks

This page contains a single entry by Trent Seidl published on October 18, 2011 3:18 PM.

A hundred An Acre IS Cheap! was the previous entry in this blog.

Public Relations Web is the next entry in this blog.

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