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What's in a
Franchise? FAQ's
I will get
an office to work from at Re/Max, C-21
or Coldwell Banker. Sometimes
depending on your attendance schedule
you MIGHT get a desk. It's more likely
you will need to have your home office
to work from.
I will get
floor time or up time at my Franchise
office.
You will get floor time this is for
certain. Also you will certainly be
answering the phones to set
appointments. Since franchise brokerages
do not locally advertise their location
to drive business, it is very unlikely
you will receive any walk in or phone
referrals.
Floor time is a nice way to say
receptionist.
C-21 and
other franchises advertise lots of
properties on their websites.
Yes, they market ALL of the MLS
properties on their websites as their
own. SO DO WE and you will have this
capability to do so on your own site
with us.
Listings
sell faster when sponsored by a
franchise.
This is the single most misrepresented
statement yet! Listen, All of the real
estate companies utilize the same tools.
no single listing sells slower than
another because of the name on the sign!
Listings will sell quicker based on how
the agent markets the product and the
skills of the agent to negotiate the
offer.
Franchise
"The Big Name" is it worth it?
Franchises have Franchise Fees, Period!
That’s how they exist.
So if there is a franchise office out
there claiming there is no franchise fee
they are lying to you. Their corporate
agreement does not allow them to pass
money through their account without
paying at least 8% off of all gross
commissions earned. You just have to ask
yourself is a franchise name worth an
additional 8% minimum off your check?
A franchise
will do more marketing for my listing.
NO THEY WON'T your listings will not get
any more publicity than you are willing
to do for it. They will not be placed in
any publication unless you pay for it to
be there. Now calculate how much of your
share you will need to spend to
advertise your listing. Oh yea, don't
forget to deduct the franchise fees,
desk fees, or splits from your check. To
be fair some Franchises will do some
moderate advertising for you, but you
will need to contribute money to an
advertising fund for the office.
I will get
more listings if I am with a franchise.
Stop and interview a few agents, ask how
they get their listings. You will find
an interesting pattern. As you know 90%
of an agents business is by referral.
This means friends and family. with the
remaining 10% coming from the internet
Think about before you became a realtor
when you wanted to buy or sell or even
look at property. Did you think "I'll
call Re/Max" OR "I'll call John Doe"
who, for the sake of this example may
just be a Re/Max agent?
You said John Doe, If you didn't you
were referred to someone by a family
member
or you scoured the internet and called
someone.
People do not walk into a real estate
office to buy or look at homes any more.
a recent survey shows more than 75% of
all home buyers look to the internet to
find a property and in many cases will
call or submit an inquiry online
directly to the agent.
Do not fool yourself into thinking that
client you just took out to view
property yesterday is not sitting at the
office browsing the internet looking at
property, even though you are e-mailing
him or her listings.
We have hired some of the top producing
agents from top franchises because they
realize their business comes their
efforts, not their Franchise.
The facts are, franchises want you to
believe your high desk fees and
advertising fees are a necessary cost to
be a realtor.
There is a better way!
You do the math..
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Compare with other
Brokerages |
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If you earn % |
Avg Sales Price |
Coop % |
Commission |
Broker |
Agent |
Less
Transaction fee $250 |
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VE Brokerage |
100% |
$120,000 |
3.50% |
$4,200 |
$0 |
$4,200 |
$3,900 |
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Other Brokerages |
60% |
$120,000 |
3.50% |
$4,200 |
$1,680 |
$2,520 |
$2,520 |
Other cost That's it
E&O Year $
100.00 (until you do 15
transactions then its $30 each for
volume with insurance company)
It's that simple..
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