When becoming a Realtor you must be sponsored by a Broker, what role do they play in your business?
1redshoe asked:
I am applying for a Real Estate License and I have to acquire a sponsoring Broker. My question is how are they compensated and/or do they get a percentage of your commissions? Exactly what role do they play in regards to a Real Estate Agent’s business when they are your Broker. All information regarding the Agent/Broker relationship would be greatly appreciated. Thanks…..
I live in Minnesota.
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I am applying for a Real Estate License and I have to acquire a sponsoring Broker. My question is how are they compensated and/or do they get a percentage of your commissions? Exactly what role do they play in regards to a Real Estate Agent’s business when they are your Broker. All information regarding the Agent/Broker relationship would be greatly appreciated. Thanks…..
I live in Minnesota.
April 23rd, 2009 at 12:34 am
Someone with a real estate salesperson license may only practice real estate when they are under the supervision of a licensed broker. As part of your sponsorship you will have a commission agreement with your employing broker which sets out rules about how the commission is divided (they will either take a flat fee or a percentage of the commission). Brokers play a HUGE role in a real estate agents business. Any transaction that you enter into as an agent does not belong to you, you enter into it on behalf of your employing broker. You are actually an agent for your broker.
April 23rd, 2009 at 3:59 pm
Brokers receive a percentage of your commissions.
The principal broker supervises your transactions, makes sure you are doing everything correctly.
Since you are new, it is important to find a broker that is good with new agents. Some brokers give you a desk, a phone, some keys to the building and expect you to figure it out. Others are very good at training new agents, and everything in between.
Not only will you want to discuss training and compensation, find out upfront who pays for what. Advertising, desk fees, postage, business cards, E&O, letterhead, copier fees, fax charge, website fees, signage, etc. there are a ton of things that you may have to pay for with one brokerage, but not another.
Other things to ask, what positions or offices have they held within the local board of Realtors? (Those are not popularity contests, those are elected positions for people that know their stuff) What is their retention of agents? How many agents have they lost to attrition or other offices?
Real estate is unique because everyone will want you. It is very low risk for the broker, because they only pay if you produce.