The economy is in dire straights, real estate sales are way down, agents are leaving the business by the score and what do big corporate real estate offices do to hold on to their remaining agents; they impose extra fees with each closing in order to shore-up the corporate dam.  To the corporate big-wigs $50-$100 doesn’t sound like much, but to a real estate agent who has seen their incomes slashed by 50% or more, that money represents another big hit in their already light wallets.  In addition to being gouged by their local real estate boards with increases in dues and fees required to stay in the real estate business, agents in many big box real estate companies are watching as their companies cut back on services that once were the recruiting carrots that promised to “free up” the agent to be more productive and earn more money.  So now these agents have less money and less time to make money; it’s like moving around the deck chairs on the Titanic.

While big box real estate is cutting services, cutting hours and picking their agents pockets with bogus fees and charges, many small Mom & Pop real estate companies are beginning to thrive.  These companies have lower overhead and can offer a better commission split in order to draw in good agents. Agents can make more money per transaction with the smaller company than with the big box companies. The smaller Mom & Pop agencies understand that most real estate is local and they don’t really need that big name logo and super bowl advertising to bring buyers and sellers through the door. 

In order to keep costs down and agent commissions high, most smaller agencies don’t offer an agent a personal desk in the office. However, they do offer a virtual connection to the office with all the support necessary to see transactions to closing.  With the advent of the internet, e-mail, fax machines, cell phones and blackberry’s, real estate agents no longer need the big desk in the agency.  As long as the agency has a conference room for the agent to meet with clients and they have access to the office voicemail system, any agent who can operate a computer, can work from their home and car with little need to drive to the office every day. I think the day of the big desk and small commission checks is quickly coming to and end.  So if you are an agent with one of the big box companies whose commission checks are being raided by franchise fees, transaction fees and management fees, take a step back from the hype and look into your local Mom & Pop agency, you’ll be glad you did.

Linda Kerr-Iwaniw
REALTOR Associate
ReSales & Investment Realty, LLC
http://www.sjerseyhomes.com/

Share on Facebook