Re: how long/how much $ to become agent - Posted by Tim Fierro (Tacoma, WA)
Posted by Tim Fierro (Tacoma, WA) on February 18, 2002 at 24:48:05:
Takes a couple of weeks or so as a minimum (60 hours) and I think our state (WA) only allows 7 hours maximum of study credit per day.
Agent licensing is about $90 or so.
You can spend as much, or as little time, as you want.
Input? Well there are a few things I can say, so I will briefly state a few. You can check with your state for the rules of licensing for details and check with a broker whom you would like to work for.
Most brokers here split the commissions with their agents 50/50 as a new agent. This means if you were to receive 6% on a listing, you would get 3% and the other broker would get 3%. Then you get to split that 3% with your broker so you would get 1.5%. As you make more for the broker, you may move up to 60/40, or 70/30, or whatever you and your broker decide on. Some brokers require a certain level of profit before you can get all of the commissions, where you might be on a 70/30 split up to the first $30k or something, and then 100% after that.
Or you can go to work for a desk fee type broker. This is where you would pay a monthly fee, and possibly some other extras per month and/or deal. I have heard some offices charge $1k a month to hang your shingle. I work for a company where I pay $300 a month to hang my shingle.
There is another company here recruiting that for only $5 a month (YEP, Five Dollars), you can hang your shingle up there; but they do a 70/30 split if I remember correctly.
Another company I know of only takes 7% total of your side of the commission and you have no monthly fees. So if you had a $200k list/sale; and you would receive 6% on it; you would receive 3% minus 7% for your broker. Not bad really if you are low volume, and there are not other fees involved; but they have a $1500 signup fee to join. So if you were doing no business for 3 months during the winter, you would have no fees with them.
If you want to be an agent, you will have to look at the local companies to see what suits you and what your broker wants of you. They may not want to hire you, hang your shingle there, if you are not producing income.
Oh, don’t forget you are will have monthly dues to different organizations that you might want to join. The local MLS is one that you would want for sure.