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Old 07-09-2013, 03:52 AM
 
Location: Mount Airy, Maryland
9,256 posts, read 5,114,970 times
Reputation: 14008

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It's good to hear that you are not tied to a company. If a Long and Foster will provide more training and opportunities than a mom and pop then that's probably the way to go, as stated 50% of something is better than 100% of nothing. But I need to look into the desk fees and other out of pockets for sure.
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Old 07-09-2013, 04:52 AM
 
Location: Louisville KY Metro area
4,824 posts, read 12,436,579 times
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Dave, I go back to my original reply. You are about to open a business. Do not worry about the split. Do not worry about the culture, do not consider anything but this one point, which firm will give you the greatest opportunity to get to the closing table. 50% of something is always better than 100% of nothing. You are about to "go-local." Like politics, all real estate is local. What is the local market share/brand you are considering? What are the educational attitudes of the local management? What are the coaching resources?

I am a RE/MAX broker-owner. Not all RE/MAX offices are the best in any particular market, but then again, in your market there just might be a grand balloon. You could find that Long & Foster is outstanding, or not. You could find a C-21, CB, KW, or Weichert best, or worst.

This must be a business decision, not a glossy piece of paper and a flash. Get out the pencil.
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Old 07-09-2013, 01:59 PM
 
Location: Columbia, SC
8,818 posts, read 17,364,478 times
Reputation: 6163
Quote:
Originally Posted by tomocox View Post
Dave, I go back to my original reply. You are about to open a business. Do not worry about the split. Do not worry about the culture, do not consider anything but this one point, which firm will give you the greatest opportunity to get to the closing table. 50% of something is always better than 100% of nothing. You are about to "go-local." Like politics, all real estate is local. What is the local market share/brand you are considering? What are the educational attitudes of the local management? What are the coaching resources?

I am a RE/MAX broker-owner. Not all RE/MAX offices are the best in any particular market, but then again, in your market there just might be a grand balloon. You could find that Long & Foster is outstanding, or not. You could find a C-21, CB, KW, or Weichert best, or worst.

This must be a business decision, not a glossy piece of paper and a flash. Get out the pencil.
Great advice that every new agent should be told! Nicely put Tom.
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Old 07-09-2013, 02:57 PM
 
Location: Mount Airy, Maryland
9,256 posts, read 5,114,970 times
Reputation: 14008
Quote:
Originally Posted by tomocox View Post
Dave, I go back to my original reply. You are about to open a business. Do not worry about the split. Do not worry about the culture, do not consider anything but this one point, which firm will give you the greatest opportunity to get to the closing table. 50% of something is always better than 100% of nothing. You are about to "go-local." Like politics, all real estate is local. What is the local market share/brand you are considering? What are the educational attitudes of the local management? What are the coaching resources?

I am a RE/MAX broker-owner. Not all RE/MAX offices are the best in any particular market, but then again, in your market there just might be a grand balloon. You could find that Long & Foster is outstanding, or not. You could find a C-21, CB, KW, or Weichert best, or worst.

This must be a business decision, not a glossy piece of paper and a flash. Get out the pencil.
Yes I agree this is great advice, thank you. I spoke at length with 2 of my friends and both work for smaller local companies. That was their recommendation, citing the lack of a desk fee and higher splits. However my 3rd friend is with Long and Foster and I'd like to get his take.

My #1 priority early on as you said is getting to the closing table and if a RE/MAX or Long and Foster can help me that's probably the way to go. Especially if their training is better. I am concerned about the upfront costs that these companies tend to charge but I guess there's only one way to find that out.

Now about the timing. I am currently working and hope to be so for the immediate future. So I"m really in no hurry to quit a paying job. But if I wait to enroll in the fall, my plan by the way so I can have a summer, to start my classwork that means I'll be hitting the street around the holidays. Would I be better off waiting for spring or am I over thinking things?
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Old 07-09-2013, 03:28 PM
 
Location: Mount Airy, Maryland
9,256 posts, read 5,114,970 times
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I just ran a search and found that the average salary for a RE agent in Frederick MD is $38,000. Please tell me this figure is skewed by the number of first year people that don't make anything and quit. I mean I can make that kind of money working the counter at a tire store.
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Old 07-09-2013, 04:22 PM
 
Location: Cary, NC
31,379 posts, read 54,958,724 times
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The harder you work, the luckier you get.

The averages are skewed by the number of people who hold licenses with no intent of working full time. And failures, too.

And I would rather make $38000 self employed at real estate brokerage than work a counter in a tire store for someone else.
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Old 07-09-2013, 05:41 PM
 
Location: DFW - Coppell / Las Colinas
29,735 posts, read 34,269,723 times
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Quote:
Originally Posted by DaveinMtAiry View Post
I just ran a search and found that the average salary for a RE agent in Frederick MD is $38,000. Please tell me this figure is skewed by the number of first year people that don't make anything and quit. I mean I can make that kind of money working the counter at a tire store.
There is a lot of part timers, rookies, failures, ect that bring down the averages.
A decent agent working full time, not selling very low end should make between $60-120K a year.
A seasoned agent who works very hard at the business can make $100-200k a year.
The outstanding professional can make $200k+ (and much more) per year.
Some outstanding Luxury agents probably pull in $300-400K and more per year.

JMO from what I've seen. This is selling moderate to higher end homes and the agents who are very good at their business.

My yearly income almost doubled the first few years when I first started. It took about 4-5 years to get it to a very nice level and has stayed there (with fluctuations) over the years.
Keep in mind your expenses should not go up proportionately as your income rises.
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Old 07-09-2013, 05:57 PM
 
2,091 posts, read 5,912,826 times
Reputation: 2144
Quote:
Originally Posted by DaveinMtAiry View Post
Yes I agree this is great advice, thank you. I spoke at length with 2 of my friends and both work for smaller local companies. That was their recommendation, citing the lack of a desk fee and higher splits. However my 3rd friend is with Long and Foster and I'd like to get his take.

My #1 priority early on as you said is getting to the closing table and if a RE/MAX or Long and Foster can help me that's probably the way to go. Especially if their training is better. I am concerned about the upfront costs that these companies tend to charge but I guess there's only one way to find that out.

Now about the timing. I am currently working and hope to be so for the immediate future. So I"m really in no hurry to quit a paying job. But if I wait to enroll in the fall, my plan by the way so I can have a summer, to start my classwork that means I'll be hitting the street around the holidays. Would I be better off waiting for spring or am I over thinking things?
You're over-thinking things. Don't know how your state is but it can take a state up to 3 months just to approve your application to take the test. I submitted mine in advance and did the fingerprints about a month before I hoped to take the test. It took about a month to get the approval to take the test. I then scheduled it for when I could take 4-5 days of cramming before test day.

Overall my study process took a meandering 6 months, and most of it was summer. I'd read the book in the evening for a few hours, and highlight. Then I did the online study, online test, crammed, compucram, state test, done. That was over 2 years ago. I'm about halfway to the monetary goal I have before I start working the business. Its all about saving funds for me right now. But I got the license when I could focus on study. I can start working anytime I'm ready.

I really need to hang my license somewhere to send referrals.
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Old 07-10-2013, 05:25 AM
 
Location: Mount Airy, Maryland
9,256 posts, read 5,114,970 times
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I've heard nothing of it taking 6 months. In fact here in MD there are several times each week at various locations that you can book.

That is a huge relief on the income. When I factor in things like health care coverage, cell phone (I've always had a work cell phone) as well as the fees I'm looking at a lot of start up out of pocket to account for and 38 grand won't cut it long term
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Old 07-10-2013, 07:13 AM
 
Location: Barrington
41,412 posts, read 31,454,663 times
Reputation: 13960
Quote:
Originally Posted by Rakin View Post

And I would not take my classes on line.
I wanted to be able to ask those silly questions to someone with experience.
I echo this. Most community colleges offer licensing courses.

Once you complete the course and become licensed, your real education begins.

Most brokers require a monthly/quarterly desk fee. There are also local board fees, lockbox fees, MLS fees, state and national association fees, regardless of your production or lack thereof. Some brokers require their agents to carry commercial liability insurance.

On a national basis, Coldwell Banker and Keller Williams tend to offer the best training for new agents.

Mentoring is subjective and variable. You are an independent contractor, not an employee.

Last edited by middle-aged mom; 07-10-2013 at 07:50 AM..
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