Really like this broker, but are the fees reasonable? Please advice!

**heidi k** · 01-02-2011, 01:19 PM

I had a great interview with a broker. I feel the office is a good fit for me, and I was greatly impressed by his business model and philosophies. I think I could learn a great deal from him.

His commission split for new agents is 50/50 which I have found to be pretty standard, but each agent pays a monthly fee of $375 to cover business expenses. I would still need to pay for business cards and $35 installation for each yard sign.

This is a very successful company, so I would be paying for their name recognition and they offer totally free training and continuing education classes.

With all this in mind, are the fees high or reasonable?

**ryanhmt** · 01-07-2011, 04:43 AM

There is no way out from booming fees. But as you said about company... this may be their stander. do some efforts to find out the best in this business n your area. Talk to the people you find around you. You can take assistance from some seniors. Otherwise you can stick to your plan. That's better!

**realestategirl** · 01-12-2011, 11:19 PM

I suggest that you ask around, or ask anyone else that this guy mentored and see what their feedback is and if it is positive, Go for It! As you said, the fees are standard. Just make sure this situation remains constant, if that change, then look for other mentors.

**ryanhmt** · 01-13-2011, 03:43 AM

That's true! You must made an inquiry about four fav. one. This must be done in local to his area. That will really help.

**First Time Home Buyers** · 01-16-2011, 08:05 PM

I'm with a RE/MAX Team (actually, the #2 RE/MAX Team in the entire country) and the monthly "desk fee" is about $700 which includes MLS dues. There is also a yearly RE/MAX fee and NAR fee at some point, plus other subscriptions like the electronic key fob from GE Supra (rip-off, IMO). All-in-all it probably costs close to $1,000 a month just to be licensed and working, before factoring in paper, ink, supplies, sign posts, etc.

The nice thing is that RE/MAX only takes 1% of each deal. The Team takes about 10% for personal-generated leads, and about 50% for Team-generated leads. So if you have a good lead personal lead source you can make pretty good money.

I don't mind the fees and splits because the name recognition and confidence associated with RE/MAX and the Team more than makes up for any money spent in fees.

It's just the cost of doing business in my mind.

**Yballe55** · 02-02-2011, 08:04 PM

If you feel that his fee is reasonable for you, it's up to you to deal with him. Because you like him to be your broker. But if you think the fee was high, you can look for another broker who can offer lower fee.

**AlexB** · 02-02-2011, 08:30 PM

That depends if the broker is willing to provide all the leads. If that is the case then 50/50 split is pretty standard. I don't know about the monthly $375 seems a little bit too high. Not sure where you are, but here in Texas, there are plenty of brokers that offer 100% commission and small monthly fee, but you would need to generate your own business.

**ChrisWatters** · 02-04-2011, 10:14 AM

That split is decent. I think it's reasonable considering you're going to be new to the business. If that also includes leads for you to work then it's a slam dunk. Prospecting/Marketing can sometimes cost up to 30% of a commission check. The split is also reasonable if the broker has you set-up with a mentor OR he will be coaching you one-on-one extensively in the beginning. Good luck!

**Jupiter Homes** · 02-11-2011, 12:06 PM

Take the offer and do your best to make as much as you can. If you can master lead generation and close the deal then you will be making a lot more and the $375/month will seem like nothing.

**flash.investing** · 02-16-2011, 08:27 PM

The fees do not sound unreasonable and keep in mind, you want to be in an office that knows how to sustain itself. Lots of good agents have been left without a broker "home" because the management did not provide for the financial maintenance of the company or office. If the reputation is as good as you think, the fees won't bother you once you start closing. Talk to agents who work there. discreetly ask someone for the low-down.