AdhiSchools Blog

Practical advice for real estate agents

Does your family support your real estate career?

Family of four walking down the street holding hands and smiling

Let's face it. Being on commission can be tough. Having the support of your family can be key as you start your career in real estate. Explain to them WHY you are choosing this career path and what you Read more...

Let's face it. Being on commission can be tough. Having the support of your family can be key as you start your career in real estate. Explain to them WHY you are choosing this career path and what you plan on doing so that you don't fail.Get as much training as you can in the beginning. Finally, most businesses fail because they don't have enough customers. What are you going to do to make sure you don't fall in this category?

By Kartik Subramaniam

September 30, 2008

Getting started in the real estate business

How to choose a real estate office

Empty open modern real estate office in orange county

Upon finishing the real estate course at ADHI Schools, LLC many of our students ask, "How do I pick a real estate office to work for?" Definitely a complicated question. The main thing to remember as Read more...

Upon finishing the real estate course at ADHI Schools, LLC many of our students ask, "How do I pick a real estate office to work for?" Definitely a complicated question. The main thing to remember as a new agent is to pick an office that has a structured and scheduled training program. Don't be enticed by high commission splits (easier said than done - I know!) or empty promises. Learn the basics like how to fill out a contract, how to get clients and service them right. Give it time - The money will show up if you stick with it and do a good job! When interviewing brokers be sure to ask for a copy of the WRITTEN training schedule. If the office doesn't have a WRITTEN program and structure chances are they are just "winging it" and you should beware.Give it time - The money will show up if you stick with it and do a good job! When interviewing brokers be sure to ask for a copy of the WRITTEN training schedule. If the office doesn't have a WRITTEN program and structure chances are they are just "winging it" and you should beware. Also be advised that some offices do have desk fees. Technically desk fees are calculated by taking the total expenses of an office and dividing by the number of salespeople. As an example, if an office has total expenses of $20,000/mo and 100 agents, each agent may be required to pay $200 to offset the hard costs of running the office. This is a watered down example of how desk fees are calculated, but each broker has their own policy in terms of what is charged to the agent and when these fees are paid. Typically, you may expect to receive a slightly higher commission in this type of office because you are paying in each month, but again every office is different. Brokers that are affiliated with a national franchise may also have something called an "off-the-top" fee. This ranges from 4-8 percent and is calculated before your commission split. As an example, if you were on a 60-40 commission split and there was a 5 percent off-the-top fee, 5 percent would be deducted from the gross commission prior to calculating your 60%. Example: $10,000 gross commission. - 500 (off-the-top/franchise fee) -4,000 (40% to broker) ________ $5,500 (agent take home) Check out this YouTube video explaining how real estate commissions are paid. Got questions about a certain office or what they are offering? Call our office today at 888 768 5285. We'll walk you through it. Or better yet, call us for recommendations. We'll lead you in the right direction! Love, Kartik

By Kartik Subramaniam

September 29, 2008
 

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