I'm a Michigan resident in the Metro Detroit suburbs (Northwest side) and I just passed the Michigan state RE Exam..Yayy..
Now, I'm considering an offer from a large firm that is known for extensive training, but...
-Commission is typically split around 50/50 .
-The desk fees range from $12,000 - $15,000
I'm wondering the following:
1) Is this is a good offer for new and dual career agents?
2) Also, I would like to know whether or not these type of contracts requiring $12,000 per year are binding if it doesn't work out and you decide to leave that agency all together?
Does anyone else have experience with these sort of contracts?
Please share your thoughts!! Thanks in Advance, Everyone!!
I would run away as fast as you can from that brokerage!! What they are offering is ridiculous!
- 50/50 split... that’s pathetic
- 12 to 15,000 desk feee, that’s pathetic
- you will be billed every month a $1,000 for 12 Months. That’s a joke! Are they going to provide you listings and buyers when you start? Probably not.
- there are Brokers that will allow you to hang your license with them to only do personal investments. Some will allow you to service the general public. Search MI brokers here on BP and ask them.
Interview with at least 3 other brokerages.
Best of luck!
I'm a new agent here in the area too! I chose Keller Williams at Somerset/Troy and after 3 months, I'm confident it was the best decision! While agents are all 1099 independent contractors, Keller Williams offers more for less. We are going to be so far ahead and keep going with what we invest in technology.
Commission is 1st year: 60 you 40 brokerage + a small fee for coaching for 1st year. Cap at $18,000 + $3,000 royalties. So after you do about 1.5 million in Volume (not a whole lot once you understand it a bit more, your goal for year is about 5-10 million starting out just for rough numbers) you get 100% of your commissions!
2nd year: 70/30 split with same $18,000 cap.
Office fee, I believe is about $50 a month.
You can then also join a team within the Brokerage if you want, which you would then have another split, but your cap drops even lower, and obviously you're getting more support/leads.
I'm going the solo route for now... 3 months in and I have 1 deal closed, 4 pending, a few other contracts. Which isn't enough for me, but I'm starting to believe in the snowball effect and the long term game, which is why I'm excited sharing.
Message me if you (or anyone else) wants to chat more! The office I'm at is great, but its the same for Keller Williams anywhere.
@Angela Williams Congrats on your new license! I start my classes on the 12th and hope to take my test next month. Was it difficult?
I want to thank each of you for your feedback and found value in each response... I started the RE Journey along the investment path and realized that though I have earned my license that my interest is still strongest in the investment opportunities so committing to an organization with such high fees is not in my best interest. I will explore the options recommended in this thread and look forward to connecting with each of you.
To the person seeking her license, as long as you select a good program and set aside daily time to dedicate yourself to understanding and applying the various areas within the Real Estate license program then you will get do fine. Good luck along this phase of your journey as well !
Please forgive my late reply..