Is it necessary to pay the desk fee under a broker?

Question

Hi,

I am about to take my RE agent's license test in few weeks, but I spoke to a broker who is willing to start working with me in advance. I was wondering if it is necessary to pay a desk fee and to utilize the desk or if it is even worth the money. He is asking for $300 a month until I get the first deal closed. He said it will be $200/mo. after the first deal, $100/mo. after the second deal, and that he won't charge me after the third deal is closed. He is also saying he will take 30% of the commission for my first deal, 20% for second deal, 10% for third deal, and 5% for the rest of my deals. Does this sound like a decent deal?

Also, I was wondering if it is even normal for a broker to get me started when I didn't even take the test yet.

Please give me some advice. I really appreciate it!

Thank you very much in advance!

Mark Pedroza · Answer

How can he work with you in advance when your not yet licensed @Young Kim or have yet signed a working agreement?

$300 a month until your first deal and then $200 after? Concentrate on taking the exam and passing and then interview broker's and see what they're office fee's are.

Majority of realtor's including myself, work out of they're homes.

Was he going to supply your first set of business cards for free or were you going to have to pay out of your pocket?

To me your pending broker-sponsor sounds suspicious. Use caution..

Young Kim · Answer

@Jonathan Greene,

Thank you for your response. More answers indicating that desk fees aren't necessary helped me come to a solid conclusion.

Thank you!

Jonathan Greene · Answer

A desk fee these days is like a rotary phone. You don't need it and you certainly shouldn't pay for it.

Young Kim · Answer

@Mark Pedroza

Thank you very much for your advice. I took your advice and ended up not working with that broker. Even if this was legit, I came to an understanding that his system is abnormal and I will be better off working with a broker who has more organized system in his business.

Again, I appreciate your answer!