I am in the process of getting my real estate license and am trying to determine whether I should commit full-time to being a real estate agent or keep my current job until I am established. I am weighing the costs of each. One item I am unclear on are desk fees and share of commissions employers take. Can someone advise what new real estate agents in Colorado (Denver and Colorado Springs) can anticipate paying to their employer for desk fees, share of commissions, etc.? Thanks!
@Bradley Damm it really varies by agency. You should pick several and go interview the managing brokers. Check out the culture and education opportunities. Find out if they have a mentor program! Monthly fees can range from $25 to several hundred. Splits vary widely and some offices have a cap and some don’t. You really have to look at what all you are getting for the cost! Good luck!
@Bradley Damm you might contact one of the Metro Broker offices. They have a big presence on that side of the mountains and several choices for new agents.
Thank you @Robin Searle & @Teri S. ! i will certainly be reaching out to brokers on the Front Range.
There are so many different business models from flat fee per transactions brokers, to desk fee brokers, to places that take a percentage then hitting a cap.
As a new agent, Id probably advise against both the flat fee brokers, as they typically do not have any training. Id probably also advise against a place like say Remax, which might have a $1,000 a month desk fee, (Which is often advantageous for the big producers like myself, but after you are more established) and go instead for a place like Keller Williams where they are intensive of training and you might start at something like a 65% split or so, then you get to say 70%, then cap out and get to 100% after you pay them $30k or so or whatever your regions cap is.
Avoid an outfit that doesn't do heavy training. Being a part timer isn't the best approach because you won't be able to commit enough time to be decent.
Join a team at KW. Go though all of their programs that you can. If you make it past 6 months, then you can leave for a broker with a smaller split.
This business chews up almost all new agents within the first year, so if you want to be successful, take it seriously and commit.