How To Save Money In First year as Realtor/Best Brokerages for $

11 Replies

Been looking at various brokerages as I’m about to obtain license and most point to KW because of favorable commission spread but I’d like to get some insight on why you chose your particular broker outside of fluff responses and how you save or wish you could save money in retrospect in this business. As well as any other hacks you’ve been able to leverage to save time and money

Disclaimer: I am not a licensed realtor so I can't give first hand experience.

However, I know plenty of realtors including several family members (in and out of state). Many of them are with KW or switched to KW at some point. I would recommend them though just based on what many of them have told me. It doesn't just come down to money. From what everyone tells me, KW has great systems and training/classes and an overall great team culture. It all comes down to how much you put into it but they create a good environment to keep you motivated and learning. It also depends on the specific office you are working through, I'm sure some are better than others. 

Best of luck!

Originally posted by @Marvin O.:

Been looking at various brokerages as I’m about to obtain license and most point to KW because of favorable commission spread but I’d like to get some insight on why you chose your particular broker outside of fluff responses and how you save or wish you could save money in retrospect in this business. As well as any other hacks you’ve been able to leverage to save time and money

A broker is not just about the "split", it's more about the culture, training, willingness to help others, community involvement, etc.  I would recommend visiting at least 5 different brokers and interview them.  Remember you are the independent contractor, so in a sense you are hiring them.  There are also fees to look out for.  Desk fee, printing/copying, signs, business cards, etc.  Some will nickel and dime you to death while others may provide all you need.

I interviewed with 7 different brokers, one being KW, but I decided to go with Harry Norman in the end.  Feel free to reach out and I can tell you why I made my decision.  

Again, it's not just about the money.  The split might be better but if there is no support it really won't matter.  

Just my .02.

 

While on the subject, what do you guys think about "Virtual" brokers? I am learning about this industry myself, so I am rather clueless. There is one in particular called eXp Realty, and they seem very MLM-ey.

@Carl Ohai eXp is great. There is a revenue share opportunity that could be considered MLM however no one is required to participate. It’s a cloud brokerage that is in all 50 states and expanding internationally all under one roof.

Originally posted by @David Bell :

@Carl Ohai eXp is great. There is a revenue share opportunity that could be considered MLM however no one is required to participate. It’s a cloud brokerage that is in all 50 states and expanding internationally all under one roof.

 Thanks for the input! eXp Realty has some agents around here, but I haven't talked to any of them.

How do "Virtual" brokerages compensate for the lack of an office space? Or do they usually just buy their own office? 

I know eXp has a deal with Regus, but there are no Regus locations in my town, unfortunately. 

eXp’s “Office Space” is in the Cloud... where we collaborate and attend training with 23,000+ Agents.  How do other Brokerages compensate for not providing this?  ...think Blockbuster vs Netflix, Barnes n Noble vs. Amazon... Who goes to a RE Office to buy real estate?

Also, fyi, eXp was modeled off of KW's "Profit Share", however, eXp took it further in rather than compensating agents with what's left after paying al expenses (i.e., all that overhead for offices, etc.), eXp compensates agents 'off the top'  i.e., before expenses, with Revenue Share.  50% of eXp's revenue goes back to agents. You can chose to be a part of that or have that $$ go to your broker (via split) to pay for the offices.  

@Carl Ohai and @Marvin O. , for me the choice was about maximum value and flexibility.  I wanted the opportunity to be able to train and have access to tools, resources, and mentors from anywhere at anytime.  When I ran the numbers, I just couldn't beat the value at eXp, especially as an investor that seeks multiple income streams and to maximize my time efficiency.  

Any of us at eXp would be more than happy to help if we can.  It is a fun and interesting national (and international) community that is growing at a ridiculous rate and creating a disruption in the industry.  

Of course, one model does not fit everyone.  But everyone should do their homework to understand their options.  

Best of luck to you both!

Originally posted by @Marian Huish :

eXp’s “Office Space” is in the Cloud... where we collaborate and attend training with 23,000+ Agents.  How do other Brokerages compensate for not providing this?  ...think Blockbuster vs Netflix, Barnes n Noble vs. Amazon... Who goes to a RE Office to buy real estate?

Also, fyi, eXp was modeled off of KW's "Profit Share", however, eXp took it further in rather than compensating agents with what's left after paying al expenses (i.e., all that overhead for offices, etc.), eXp compensates agents 'off the top'  i.e., before expenses, with Revenue Share.  50% of eXp's revenue goes back to agents. You can chose to be a part of that or have that $$ go to your broker (via split) to pay for the offices.  


I see a couple advantages to something like a C21

1: They are a household name in the industry. I didn't even know what eXp was until two weeks ago.

2: I see not having an office as a pretty big downside..... Nothing says "I'm not actually a dedicated professional" like "Meet me at Taco Bell to close this $500,000 deal."

 

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@Carl Ohai , you're absolutely right.  C21, KW, etc. are all more well known of course.  For now. :D  Anyone can also be a not too hot agent at any brokerage as well.  Demonstrate your value and the rest will take care of itself.  Not sure why you'd choose taco bell, but hey maybe that appeals to some buyers!  Be creative.  Close at the title company.  

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