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Joining a Brokerage |
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As a new sales agent looking for a broker, what can I expect to be the normal things that a real estate office would offer in terms of benefits? What about commission arrangements, other forms of salary? I want to pursue and hook up with an office that sells only commercial real estate. |
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Most real estate offices take associates on as independent contractors, not as employees. That means that from an IRS point of view, you're in business for yourself. You can't be offered any health insurance, paid vacation, salary or draw. While your managing broker must give you close personal guidance, you can't be required to work any particular number of hours or even to attend sales meetings. You'll have to make your own quarterly tax withholding payments. You'll be paying both employer and employee shares of social security contributions, not quite double what an ordinary employee pays.
Your compensation will depend on how much you bring in to the office. Only your broker is allowed to charge the public for the firm's services. Commisions you've earned are then shared; for a beginner, who requires close supervision, a 50-50 split is typical. Most offices work on a sliding scale, with more generous arrangements as you become more experienced.
By all means, interview with commercial brokers. You may find, though, that it's easier to gain your first experience in residential work. |
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Edith
Originally published on July 24, 2008 |
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