The basic salesperson makes between 55-70% in commissions. The salesperson must pay all of his expenses and still give the broker a percentage. A salesperson or Agent must be a licensed real estate agent for two years before they can be a broker in most states.
The reason for this is to get as much hands on experience as possible. But after that time, they may open their own office. Obtaining a broker's license is fairly easy and interested prospects can complete an internet online course and after passing the course, go to a state office for the final exam. One company that offers such a course is Allied Real Estate Licensing School.
After passing the board exam, the license arrives in the mail. It is time now to look for a suitable office to conduct business in. Always look for a good location, that is priced right with access to drive-by traffic. The cheapest office in the worst area is a waste of money.
Steps involved
A short lease is better in the beginning until the business is successful. Purchase a suitable building sign and going to the city for the license and setting up a business plan are all steps in preparing to open a office.
Go to the auctions and buy the best furniture that the budget will allow and accessories like pictures and vases. The broker's office is the meeting place of many deals, so pay attention to this room. Purchasing desks for the agents and setting up a phone system is the next step.
A smart broker in today's times will charge the agent for the phone. The broker sets up the basic installation and the agent is responsible for contacting the phone company and setting up their own phone.
So now that the office is ready, furniture, phones and signs must also be purchased. The next investment will be in computers and office equipment. Always, buy good quality equipment as this will be used daily. There are many used computers that are top of the line that can be placed in the office.
Smart Business Sense
Many brokers begin their business on their own and intend to hire agents along the way. It is not necessary to have agents on roll when the office first opens. Setting up a business plan, offering discounts to regular clients and hosting welcoming parties are much more important in the beginning.
Let people know that the office is open through local newspaper advertisements, holding an open house and by posting high quality signs.
Many brokers of independent offices offer discounts in commissions and they ask for referrals in exchange. This is highly profitable in a world of many foreclosures and impending bankruptcies. Having experience in short sales and REO's is desired.
Resources:
How to Become a Real Estate Broker
 |
