Interview for realtor position in California. Asking rate?

Question

I have a job interview next week for a realtor position working under a broker in North Bay and in the city of San Francisco. How much should I ask for as a starting rate? Do realtors get paid salary + commission or hourly?I have only taken some real estate courses, and have no background experience in real estate. I do want to get my salesperson license, then eventually my broker license. Any advice would be appreciated thanks.

Answer 1

The negotiation of which you speak has NOTHING to do with any sort of salary.  99% of real estate agents work only on commission.  Do NOT expect to be offered any sort of paycheck.  You will be offered an office space, and a contract which will determine your 'commission split'.

For starting REALTORS, it is roughly 50% of your commission intake.  That means that, if you somehow earn a $10,000 commission, the agency will take $5,000 of that earning (that's how they pay for your office space.).  If you are successful and provide a lot of 'commissions' to the managing brokerage, your 'split' will increase to your advantage.

Answer 2

You may not work as a real estate agent in California without your real estate license.

The first thing you will have to do is take the state real estate exam and pass in order to get your California Real Estate Sales license.

Normally real estate agents are paid a commission on each sales they make for the broker in which they are working.

If you are working with an agent as an assistant this person might pay you an hourly salary.

The most important thing you will encounter is how to market yourself at the most econimical cost to you.

There are several marketing techniques that are in use today.  

#1   There is telemarketing, but then there is the "Do not call list" So you have to be careful there and not make a mistake or you will be sued. Cost is $11,000 per call for you as well as your employer.

#3 Advertise in the local newspaper that you are now in the business of doing real estate

#4 You can direct mail to people in your city telling them you are in the real estate business.

I suggest you market yourself by leaving the office and spending time in a area that you want to work and get to know the people that could be your future clients.

Find an area in your city that you want to work approximately 5,000-10,000 houses. Make you enough flyers to cover your area. If you have children this will be a good weekend activity for them as well as yourself. While walking the area passing out your flyers, if you see someone out doing the lawn or just out introduce yourself, give them one of your cards.  See if they are willing to give you their name and email address so you can email them, on a monthly basis, things about the real estate  industry as well as your monthly newsletter. Place any information you collect in a data base that you should start.

Your flyer should tell them a little about you, the high school and college you attended, a little about your family # of children, husbands first name if you have a family yet, a few of the real estate programs that you will be offering and introducing. This is an introductory flyer that you can make on your computer. You can get them ran off at Staples or Office Depot.

You should pass these type flyers out at least 3 months in a row. This will let them know that you are sincere and look as if you will be there for them.

You should also visit the local commercial places in the same area. Find out if they will allow you to place a flyer holder in their business, give them one of your business cards, find out their

name, write it down you never want to forget it because they will become one of your partners. buy something even if you are gonna give it away and don't need it. Do this to as many commercial businesses in the area as will allow you to place a flyer holder in their place of business. You will find the flyer holders at Staples or Office Depot..

Call the post office and inquire about their bulk mailing stamp. Get one and learn the system of bulk mailing.

Also call your title company and get them to provide you with the names of the people in your area that you have been passing out your flyer.

Remember your data base you were starting and now should have over a thousand names that you  alone should have been able to get if you have been walking the area.

Once you have passed out the flyers for at least 3-4 months start you a newsletter covering topics on the real estate business. Get articles from your local newspaper as well as off the internet. Just remember to give credit to the author of the article. You might have a doctor, lawyer or some other professional to help you on your articles. Charge them for the articles, about 50% of the cost of the newsletter.

Now remember the businesses that you had your flyers in and you now know their names because you have been there to change your flyers about 2 times per month. Place your news letter in these businesses also.

The best thing about these businesses is now you want to see if they will advertise their business in your newsletter being sent to the local area in which their business is located. You should be able to charge them about $45.00 to $50.00 per business size card advertisement. Try and get them to place a coupon in the flyer offering some type of discount if the customer bring the coupon in to their store.

Now you will need a professional team to assist you in your business.  You will need an attorney, a notary, a title rep, an insurance agent that sell homeowners insurance policies and a loan consultant. (If your real estate office have their own mortgage company you might not be able to us a loan consultant from your office so you might want to seek an outside loan consultant. You should pass out their cards to your clients that need their services and they should pass out your business cards to their clients that need your services.   This should give you  a steady supply of referrals. This should not be a one way street, they should be helping you as much as they are in the habit of helping you. So you might have to change your professional team to get what need to be accomplished.

Now that you have your bulk stamp, your newsletter and your data base that you have now added from your title rep to the names you had already. You are now ready to mail or email your newsletter each month.

If you encounter any FSBO refer them to your loan consultant. He will pre-approve any potential clients for loans and turn them over to you to find them a house. So if you encounter a FSBO, see if he would want the loan consultant on your team to assist him. What ever you do, do not try and talk this person from trying to sell their house themselves. I know  what conventional wisdom tell you but you will get more out of the FSBO through your loan consultant than if you p**s off this guy and get nothing. Suppose your loan consultant is able to turn 3 of those he talk to into pre-approvals, guess who will get to sell them a home? That is better than trying to turn a FSBO into a listing where you only get one listing if you get it at all.

If you continue to listen to those in your office, one year from today you will still be asking the same question.

You have a fantastic position, get out and meet the people that need your services, turn then into clients.

I hope this has been of some help to you, good luck.

"FIGHT ON"

Answer 3

In most cases, you are self employed and your broker holds your license. They aren’t actually your employer, though a good office won’t accept just anyone because their reputation depends on the quality of the agents who represent the company name.

You’re normally only paid on commission, based on what you sell. Occasionally you’ll find companies who will pay you a base salary or that split commissions with the entire office – though why anyone ever wants part of their commission going to people who didn’t earn it is beyond me.

You will very likely be paying your broker for various items. Some offices charge only for use of copy machines others will go so far as to make you pay for your desk space. You’ll often have to provide much of your own office supplies and marketing materials.

So if you don’t have your license yet, why is this company even talking to you? You can’t do anything until you’re licensed.