Looking for a favorable commission brokerage for new RE Agent

[Daniel F.]

Hi all,

I just passed the real estate license exam here in Chicago, my intention is to do this for family business purposes and am looking for a favorable commission structure. I found one brokerage, Kale Realty who have the commissions going 100% to broker but you pay $325 per transaction, for rentals its 80% to broker and $15 per transaction. In addition you pay $49 monthly fee + $199 annual errors and omission insurance. 

For someone who is most likely only going to do a handful of transactions a year mostly in renting, does this sound like a fair deal or are there better alternatives?

Thanks!

[Lumi Ispas]

Hi Daniel, 

You are not looking for the right thing. If you want to learn the business and make money, you need a brokerage that will teach you the business and give you leads, which means that you'll start at 50% plus Yearly Error and Emission. 

90% of all new brokers are out of business after first year, as they focus on getting the biggest share of the commission instead of focusing on working with as many clients as possible and learning the business.

Also, keep in mind that the brokerages that charge fees they make their money that way, as they know it's a numbers game. The monthly fees alone for 100 brokers will be 60K a year for the company, while they don't really care if you do business or not!