There are five critical and common mistakes made by many Agents in today's marketplace. Most companies are sure you will make at least some of these. In fact, they are counting on it since their business model depends on it!
At HomeSense® Realty we don't want you to make these costly mistakes. Read on, your next decision is critical to your continued success and profitability. We are speaking, of course, about your choice of Real Estate Companies with which you will affiliate and trust your future.
Mistake #1 - Never agree to a commission split.
You see, it really is your hard work that earns the money, so it really is your money. For decades brokers and companies have taken as much as 50% of an Agent's commission. Many companies will provide you with lots of sales-speak to justify keeping your money but it is just "talk." In reality, most current companies provide very little of true value to an Agent and, in return, keep an extremely unfair amount of an Agent's money. Why? Well, that's just the way it has always been...until now.
Mistake #2 - Never pay a franchise fee.
Many Agents are led to believe that a franchise company is a security blanket. This is wrong. The days of the traditional franchise are numbered. Today's savvy consumer is concerned about two things; the personal Agent with whom they will be dealing, and their bottom line. The fallacy that a company name or company advertisement sells houses is simply not true. Would you by a house that you didn't love just because it was listed with a franchise company? The fact is houses sell houses, not company names. When an Agent pays a franchise fee of 5%, 6%, or even 8% to a company, they simply are not getting anything back for their money. Ultimately, this can also do the client a disservice by limiting their options. It is true that, for the majority of Agents in a franchise organization, very few of their transactions can be directly attributed to the company. So again, why pay something for nothing?
Mistake #3 - Never give up control of your business.
In today's competitive marketplace flexibility is the key to success. It is critical that you have full control over your business and the ability to choose the cost of your services. At other real estate companies you are either prohibited from, or financially penalized for, offering anything to the customer other than the strict company policy. Buyers and Sellers today are placing greater demands on Agents for service, lower cost of sale, and control over the transaction. Most companies have not yet realized what is happening and are holding to outdated and archaic approaches to the business. Agents today need the freedom and flexibility to negotiate with both Buyers and Sellers when it comes to providing their services to them. It's your business and it's your money.
Mistake #4 - Never sign a long-term, restrictive agreement.
At HomeSense® Realty you have a choice. We do not require a long-term agreement and should you decide you would be happier with another company, you get to take your listings and buyers with you...free and clear with no penalties. It just doesn't get any better than that.
Mistake #5 - Not gathering and considering all the facts.
At HomeSense® Realty we know that choosing the right path in life can bring you endless rewards, while making the wrong choice will bring you many hard and costly lessons. All too often, new Agents become impatient with the process of choosing a company to affiliate with, and seasoned veterans sometimes become too comfortable with the way things have always been done. This is one time you need to take your time and be thorough.
Call Jess McClellan, Broker, at 800-330-2001 ext. 3 to confidentially discuss your potential opportunities at HomeSense® Realty.