Posted by cwc on January 18, 2001 at 21:05:39:
2 What is fair if they are produceing other income?
Broker question on split - Posted by cwc
Posted by cwc on January 18, 2001 at 21:04:06:
I am wondering what split might be given to a agent that is mostly buying investment property, and has little other production. A company I ust to work for would let each agent do 1 purchase a year with no money going to the company. As the broker I think I will want something out of every deal.
1What is fair with no other income being generated?
Fair? or acceptable? - Posted by Carmen_FL
Posted by Carmen_FL on January 22, 2001 at 11:07:51:
As a broker, I know I am responsible for the actions of the agents working under me. I therefore would prefer to have the deals either come through me or through an assistant that handles all the paperwork for the agents (especially a new agent). That would entail a per-transaction fee (about $250).
On top of that, whatever split you and the agent can agree to would work and be “fair”. I have agents working for me now, where we have an 80/20 split - since they don’t really need me to do anything for them - they work from home, do their own advertising, and don’t need office space. On personal or investment deals, that goes to a 90/10 split (because I’m such a nice person). That’s the kind of deal I had as an agent, and I found it “fair” - meaning both the broker and I agreed to it.
The key is that I am not counting on making much money off these part-time agents - whatever I do make is gravy. It’s just a way to help them out, and keep my fingers in the “broker” pot.
Re: Broker is at risk - Posted by Ed Copp (OH)
Posted by Ed Copp (OH) on January 19, 2001 at 15:25:06:
in my state for at least three years for the actions of an associate. If the agent violates any existing laws, or gets sued the broker will be named as well. So the broker does have that risk.
The concept of charging a desk space fee, is one that works fairly well (I call it an “office participation fee”). As a broker another plan that I have used successfully is to have the agent set up on a 90% commission plan. This persumes that the agent is experienced, and knowledgable about the laws that apply. When using the 90% plan I will assume that the agent can close without the assistance of the broker and the remaing 10% will come to the office. The agent will pay all of his own expenses on this plan.
In my state the broker is required to keep records of all transactions for 3 years after completion of the transaction. This involves some cost, to the office.
Re: Broker question on split - Posted by Tom
Posted by Tom on January 18, 2001 at 21:59:15:
What’s your risk? If I buy a house as an agent, why should you get a cut. What support do you offer to the agent? Personally I pay a monthly desk fee and a per transaction fee, I get 100% of the commission, that’s the only way I’d work.