Part I Finding Your Ideal Broker - Home

Part I: Finding Your Ideal Broker   by Carol Bayer

in Home    (submitted 2012-06-22)

While the real estate market has taken a major hit in the past five years, there is still plenty of opportunity to build a successful real estate (R.E.) career. One of the most important things to understand as a R.E. hopeful is that you are essentially self-employed. Yes, you must work beneath a broker, who will offer their support and experience in the field; however, you will typically find your own clients and manage your own business affairs.

This can include financing your own marketing and promotion expenses, expenses for travel, while showing houses and marketing each individual property through Open Houses, newspaper ads, and internet advertising. Most R.E. positions are 1099, meaning you are an independent contractor and you make your money on commissions alone. Luckily, in a slow real estate market, agents are able to make commissions on rentals as well as sales, but rentals alone can be hard to live off of. Some brokers will offer a stipend or hourly rate to get you going, and others will offer you leads to help you get going, but choosing your broker will have a huge impact on the direction of your R.E. career.One of the most important things to do before deciding on a broker is to set up interviews with at least three or four brokers. Some brokers run a franchise under a well-known name, and others are smaller, more boutique agencies that are well-connected in the community. You will want to interview with an assortment of brokers before making your final decision, because in real estate, the agent is in control of their business. Here are a couple things to consider when making your decision:Commission Splits - Your broker will take a percentage of your commission when you make a sale in real estate, some will take close to nothing, while others may walk away with a chunk of your commission. While commission splits can become a point of contention later in your career, it should be low on your list when you're first starting out. When you first get into R.E., you're going to need a lot of education, support, and even some leads to get going, so a broker that provides you with these things will typically have a higher split to compensate them for their time and energy.To read more about real estate brokers and to check out our Denver Colorado homes for sale, please visit us at PorchLight Realty.