Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
My cash reserve is next to none. Some might say this is a bad time to switch careers but I don't think I will ever have a cash reserve again at my restaurant job. I am going down from 6 nights a week to 4 so I can devote time to real estate. Most tell me if I don't go at real estate full time I can't make it. I am really committed to making it my primary career, the restaurant comes second.
I think also I have to concerned about the numbers. Yes there is a vast amount to learn. But in life careers are about money. I have to make what I need to survive and my drive to learn and sell is a drive to make money. I have always been interested in selling real estate and I believe I can make it a realty and make money doing it.
I am sure the C21 can teach me a lot, but like someone said, what is the cost of learning? An experienced RE/MAX agent told me the best education is to get out and do the job. I do not have the cash in reserve to pay RE/MAX every month, but who knows how fast I would get going. A RE/MAX manager in my area told me he doesn't hire new agents a lot, but to try the C21 office I mentioned and that they are great for training. He said if in a few months/years I take off to go talk to him. Out of the 5 or so RE/MAX offices I contacted, he is the only one who responded.
Try another approach... maybe... become a licensed assistant for a Realtor of any brand. Join the team of a successful Realtor and learn. Some of the very best education you can get will come from being an apprentice.
Of the RE/MAX brokers you have interviewed, did any discuss the RE/MAX Alternative Pay Plan (RAPP). Could be a great career starter.
I personally don't believe from what I have read of your writing that you are quite ready yet.
One question... How strong is your C21 in your area? Here they don't do a lot and not a major factor in my market. They do a great job and are stronger in some areas then others.
I would want a company that has a real presence in the area. Don't just take their word for it either. The more presence or market share the better your chance to pull in business.
Century 21 I would say is in the top three here and has been for years. In my immediate area I would say it is number 1, followed by RE/MAX and a local company called Real Estate One.
For me the split was not important at all. When you're new I would recommend you get as many transactions as possible to build up a referral base. We discussed it on a recent thread, I started just as the market turned and most of my past clients (many who want to move) have lost 20-25% and can't afford to sell as they put down 5% or less, so even 7 years into the business, I need mostly new business that has never heard of me. Find a company that will supply you with leads from its web site (even if you pay a referral fee), has relocation business (again a heavy fee), and has agents that will let you do open houses or desk duty, anything to build up your customer/client base as quickly as possible. Your biggest frustration will be your own friends and family (sphere of influence) who know that you are new and may already have relationships with experienced agent and continue that relationship.
Century 21 I would say is in the top three here and has been for years. In my immediate area I would say it is number 1, followed by RE/MAX and a local company called Real Estate One.
To understand RAPP, one must understand the traditional RE/MAX model. When you join RE/MAX, the broker may or may not follow the traditional model. The traditional model commits 95% of your Gross Commission Income (GCI) back to you while the franchise contract requires that the broker keep 5% and forward a portion of that to the regional office, which then keeps a portion of the portion and sends the rest on to RE/MAX, LLC. The associate without regards to number or size of transactions pays the broker a monthly sum determined by a number of preset values. There is the Broker Service Expense, Shared Office Expenses, Miscellaneous Shared Expenses, and Personal Expenses. Typically the sum of these monthly charges to the agent can range from $500 to $2000 per month depending on the services and programs of each independent broker-owner.
The RAPP takes the sum of the monthly expenses multiplies that total by 12 and then "loans" that amount to the agent. As the agent produces GCI, instead of giving the agent 95% the broker keeps the 5% mentioned about and then from the balance splits the 95% in a range of 60 to 80% to the agent and then applies the 40-20% towards the "loan" balance. Usually, the broker charges $50-150 per month to offer this plan.
Regarding C-21 in the Louisville market. All I will say is that the once perennial market brand leader has slipped in every category to where it is an "also ran." RE/MAX in this market is a decidely superior force. We hold 22-23% of the total market share, our agents are always # 1 or # 2 in average productivity (number of transactions and volume), in education, and in average price per transaction. We are RE/MAX 22% market share, Semonin (large independent owned by Home Services of America) 12% (with nearly 100 more agents than total of RE/MAX in local MLS), Coldwell Banker 7.5%; Keller Williams 7.4%, Prudential 3% and C-21 coming in a weak fifth.
I agree with the comments about how you will gain your clients the first couple years. Make sure you are working somewhere there are referrals, "floor time" answering sign calls, and can get the opportunity to hold open houses for high volume agents in the office. My first year, almost all my clients came from people I met holding open houses for other agents. If I didn't work somewhere that gave me that opportunity, I probably would not have stayed in the business.
Training, agents that spend time in the office for you to network with, and a manager that is around to answer questions are all important when getting started. Ask those questions.
FYI - I work for a regional company. We are #1 market share in the area, but only operate in basically 4 counties. Training is excellent, support and friendliness of agents is excellent. Find out which company offers these items in your area, and don't just limit yourself to the national brands.
I was wondering how long before Tom would be here shooting off about Re/Max. I suggest you start at the company with local hands on training and if you like Re/Max move over there after you have steady business and a decent referral base.
I can't find market share data for my area since I do not have access to the MLS yet but I have info on the "Largest Residential Brokers in Detroit by gross sales). #1 is Real Estate One, Century 21 holds the #4, #8, #14 spots. RE/MAX holds the #6, #10, #15, #16, #18, #19, and #20 spots. These are of course by individual brokerages. Real Estate One holds the top spot since it is a single brokerage with something like 31 offices in Metro Detroit. The office that I would work for with C21 is the #14 in Detroit but definitely holds a large amount of market share in my target area of Dearborn Heights and Dearborn. I have interviewed with Real Estate One and their training does not strike me as being as in depth as the C21 office. She had a very detailed plan of training from top producers and herself. She is very hands on with new agents. The office may be #14 by gross sales in the Detroit area but it is #1 in the Great Lakes region for Century 21 and #7 nationwide.
Last edited by cardwellave; 03-21-2012 at 08:45 AM..
I was wondering how long before Tom would be here shooting off about Re/Max. I suggest you start at the company with local hands on training and if you like Re/Max move over there after you have steady business and a decent referral base.
I appreciate your compliment, Brandon. Once again, the only way you can defend your brand or offer advice is by damning the other guy. To me, that is the greatest compliment possible to your competition.
Please note, I did not advise the OP to join RE/MAX. I did advise the OP to consider RE/MAX and to keep interviewing until they find the right answer for their situation.
I can't find market share data for my area since I do not have access to the MLS yet but I have info on the "Largest Residential Brokers in Detroit by gross sales). #1 is Real Estate One, Century 21 holds the #4, #8, #14 spots. RE/MAX holds the #6, #10, #15, #16, #18, #19, and #20 spots. These are of course by individual brokerages. Real Estate One holds the top spot since it is a single brokerage with something like 31 offices in Metro Detroit. The office that I would work for with C21 is the #14 in Detroit but definitely holds a large amount of market share in my target area of Dearborn Heights and Dearborn. I have interviewed with Real Estate One and their training does not strike me as being as in depth as the C21 office. She had a very detailed plan of training from top producers and herself. She is very hands on with new agents. The office may be #14 by gross sales in the Detroit area but it is #1 in the Great Lakes region for Century 21 and #7 nationwide.
Card, You just learned a most important career issue. Wow, I think you just answered your question. #1 and #7 of the largest brand by agent count in the US, but #14 in Detroit. That tells me that the productivity per agent must be extremely low. There must be some pretty rotten training or huge turnover.
Productivity per agent is solid evidence of how well you will do.
Have you interviewed both current agents with a firm, and those who have left the firm? You must get to the truth. It is your money and your career that you are about to invest.
I am not recommending any office or brand, but you owe it to yourself to keep asking the excellent questions you are posting here.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
