After Your Real Estate License…
Congratulations on obtaining your real estate license! After obtaining your real estate license, the next step is to choose a real estate brokerage and join the various board and memberships which enable you to effectively practice as a Realtor.
There are 4 main factors to consider when you decided to join a real estate brokerage. Fees, Training, Systems and Broker Support.
No two real estate transactions are ever the same, regardless of how many you’ve done, at some point you will encounter a situation where you need advice. Inevitably, it seems to occur after business hours and usually is time sensitive. Those are the situations where having a broker who is readily accessible becomes critical.
You also want a broker who will make sure you stay abreast of the latest legal updates, be willing to advocate for you with clients and other agents as necessary, and who works to maintain a culture of helpful and supportive agents.
Typical real estate brokerages charge several layers of fees.
Monthly membership fee – sometimes referred to as a technology fee, desk fee or training fee. Paid monthly regardless
Commission split – this is a percentage of commission the broker takes from each transaction. The most common splits range from 50/50 to 70/30 (70% of commission goes to the agent, 30% goes to the brokerage). Usually these have a “cap” which is an amount at which the agent starts to keep 100% until the next year, often this cap is around $23,000 but varies between brokerages.
Franchise fee – typically an additional commission percentage which goes to the national franchise and often doesn’t cap.
Transaction Fee – fixed fee paid per transaction.
Many brokers will offer you a list of “free” technology and other items. Occasionally it’s a benefit but many are actually free regardless of which broker you choose (provided by the WRA or MLS). Others are a broker specific system so if you ever change brokerages you’ll lose your data and have to relearn a new system. They also are part of the reason that the broker tries to justify relatively high fees. Typically a better option is to choose a lower cost broker and then use the savings to choose your own systems and technology.
If you’re an experienced agent then brokerage training is not nearly as important as the previous items. After you’ve learned the basics then you can thanks to the world of Facebook and Zoom you can find a coach anywhere in the country who matches your personality and style.
For newer agents, having solid brokerage training is critically important. Almost all brokerages will say that they offer training but the quality varies widely. Some charge an extra fee for anything but their most basic training. Large franchises often have general videos or online trainings which don’t address the nuances of the local market.
In our opinion, a newer agent should look for a brokerage with a variety of options. Videos and written information which can be accessed anytime, paired with live, interactive trainings and roleplays. An experienced mentor is also critical for the first few transactions and to help you learn how to develop leads.
|Big Block Midwest|
Broker Support: Broker on-call for emergencies at all times. Dedicated Agent Concierge, Facebook group for brokerage agents with experienced agents willing to assist.
Fees: Membership Fee: $3600/year (discounts available, can be paid from closings).
|Transaction Fee: $250/transaction (capped after 40 closings/yr). That’s it! No hidden fees!|
|Systems: Ability to choose your own systems and technologies, discounts and training provided on many commonly used items.|
|Training: Initial business strategy session with broker, Mentor program for new agents, weekly live trainings, regular role-play sessions, extensive video library, sample scripts and systems.|
Apply Now with Big Block Midwest!
If you’ve already spoken with us and have determined that Big Block Midwest will be a great place to advance your career then please click here to complete the application!
Joining Your Local Multiple Listing Service
In order to effectively practice as a real estate agent, you need to join a multiple listing service (MLS). A multiple listing service is the way in which real estate agents share available properties and agree on commission.
There are a variety of different multiple listing services in Wisconsin based on geographic location. In order to join them it’s also necessary to join the National Association of Realtors (NAR) and the Wisconsin Realtors Association (WRA) as well as the local Realtor association.
Membership in the National Association of Realtors enables you to use the title REALTOR® and you agreed to abide by a Code of Ethics. It also allows you access to numerous free educational opportunities as well as the opportunity to earn various designations.
Below you will