FEES at Absolute
WE'RE NOT HERE TO TAKE MONEY FROM YOU, WE'RE HERE TO GROW WITH YOU AND DEVELOPE A FUTURE TOGETHER!
When considering a brokerage, fees are a very interesting subject. Most agents don't realize all the different types of fees that can be deducted from a transaction or become do monthly, quarterly or annually as the responsibility of the agent. Now, One thing we have learned from our vast experience in this business is brokers are creative. Many brokers will virtually create their own language to define what a fee means at their company and the same fees could be charged at a another company but could be called something completely different. It's crucial for new agents to know what is and is not common in the industry. These various fees weigh heavily on your bottom line. We've listed several of the various fees agents can encounter either individually or collectively at their brokerage. When interviewing with a prospective broker, be sure to focus on these points as they will help you determine what you are really gettign into!
Monthly Desk Fees or Association Fees. Many brokers charge monthly desk fees. This is one way to offset cost by displacing a recurring monthly fee on the agent to cover the basic overhead of the broker. Depending on the brokerage and what you want to receive, theses monthly fees can range from $45 to amounts greater than $1,000. Now, in many cases, the more you pay the more you get, but in most cases, you pay a monthly desk fee to be a virtual agent. Virtual agents are agents that basically don't have a desk or solely dedicated workspace for them in the office and they work pretty much remotely. Often times when desk fees are associated, the agent receives a higher commission, but be weary as there is almost always a catch. Either you won't get any support or your broker may like to change the status of a listing so they can take larger percentages of the commission from you.
Listing Fees. Listing Fees are not uncommon. You will often see listing fees at companies as a result of an agent working at the company brought that listing to the firm and deserves compensation for the work they perform in association with that listing. However, its important to note that some companies will put listing fees on open listings as they wanted your gross commission to sound better when you interviewed with them. Another concern regarding listing fees is when the listing fee is extremely high. Many brokers will give the farm away for listings and to accommodate an agent at their company. You could go from one company and there be no listing fee for an open or limited listing you are used to working, but when you arrive at your new brokerage, you find that there is a 30% or 40% listing fee and the new broker classifies the listing as exclusive. Does that make bells go off in your head? At Absolute Properties, we don't have ridiculous listing fees. As a matter of fact, less than 5% of our listings have listing fees associated with them.
Trainer Fees. The real estate industry is vicious, we get it. New agents need to be aware that many brokers operate their brokerages as boiler rooms and will higher agents in the masses. While doing that, the broker also takes a hefty penny out of your pocket so you can pay for your trainers expertise. Often times, new agents will lose up to at least half of their commission to pay for trainer fees. In many instances, you as a trainee or new agent will not be able to end your training until you make a minimum amount during your contract year. We don't take your money!
Business Expense Fees. Really, what does this even mean? Companies that charge these fees can sometimes add them on to a transaction as they may say they don't have listing fees so they come up with names similar in nature to tie into a transaction for them to make more money off of you.
Lead Fees. Lead fees can also work like referral fees. Now, this isn't always a part of the business, but obviously when an agent hands out a lead to another agent, they should rightfully be compensated for the extent of work the agent performed relating to a transaction, but that doesn't mean you should be paying a huge price for the lead.
Membership dues. Many companies are part of associations organizations outside of their brokerage which essentially create a community of professionals. These comminutes are designed for good reason and many people believe it is mandatory for a broker and their agents to be a part of these associations. All of these associations charge dues and often hundreds or even thousands of dollars to be associated each year. Now, the purpose of these associations is for good cause as they often hold their members to specific standards, but in reality, these standards are really hard to enforce. Many brokerages will say they're ethical or conduct their business with great moral spirit, but that reality is that's not always the case. At Absolute Properties, we have great relationships with many members of these organizations and conduct regular business with them because we define ourselves and our bran and as brokers, we respects each other on a professional level based on our experiences with one another, not because of our affiliation with an association. We hold ourselves accountable to a higher standard than any law.
Business Card Fees. Did you know some agencies charge upwards of $250 dollars for a small stack of business cards? Paying that much for business cards is outlandish when you only get a couple hundred and there's nothing special about the print or stock.