Sometimes a commercial real estate salesperson will be attracted to another agency for any of a number of reasons. It is OK to move and change agency, although you should realise that the process should be checked out fully before you make the final move.
There are many ways in which you can Newport Residences compare agencies. When you dig down you will see some important differences between agencies. Compare them completely before you make the final decision and make the move.
Here are some ideas to help you understand what I am getting at:
- Most agents move for ‘money’ and commission reasons. If that is your reason to move, understand that most agencies will have different administrative structures and for that reason cannot be directly compared. One agency may have great administrative support for the sales team, whilst another will have none or very little. Seek proof as to the administrative support processes. There is nothing more frustrating in our industry but being ‘bogged down’ in routing paperwork that someone else can do.
- The percentage of commission that you are paid from the overall commission to the agency will vary and depend on the ‘value’ you bring to an agency. If you are employed by an agency, the commission that you get in your pocket will generally be up to 50% of the overall commission paid by the client. It is not unusual for new recruits in the industry to be paid just 25 to 30% of the commission from a deal that they put together. This figure will change when experience and ability come together.
- Commission payments will be offset in most cases against your salary base. In other words there will be a payback requirement on your salary before you see actual extra money in your pocket. If you get too far behind in salary debit, it will be a very long time before you see commissions coming to you as extra money. For this very reason it pays to prospect and network immediately when you start a new job in a new real estate agency. Do not let yourself get too far behind in salary debit.
- The top agents will usually get over 50% of commission and in some cases up to 65%. The rest of the money goes back to the agency to pay for your administrative support. Top agents bring exceptional skill, drive, and client interaction to an agency. They deserve the high commission rates given the income that they bring into the business.
- How much administrative support do you get or need? Top agents have a lot of administrative support, but with that go a cost factor. Who is providing that administrative support and how is it paid for? Watch out for the ‘hidden’ desk fees that you need to pay monthly.
- Are there any restrictions on your prospecting zone, or property type? Get those limitations sorted before you join another agency.
It can be said that moving agency is a good thing to keep you fresh from a business perspective. In saying that, make sure you check out all the facts before you start the move.