REALTOR® Marko Juras Victoria, B.C.

Marko Juras is a top producing REALTOR® in Victoria, B.C. with 100 MLS® properties SOLD in 2017.

Real Estate Myth Buster #3 – What motivation do brokerages have in terms of recruiting REALTORS®?

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It’s pretty simple. The way most modern real estate brokerages work is they charge their REALTORS® a “desk fee.” For example, a desk fee can be $500 per month. On top of that brokerages typically also charge something called a “deal fee” which is paid to the brokerage for each successful transaction a REALTOR® executes. For example, a desk fee can be $250 per successful transaction.

The desk fee is not dependent on sales; therefore, it is the most consistent stream of revenue for many brokerages. If a brokerage has 100 REALTORS® their monthly revenue from the $500/month desk fee will be $50,000; however, if they have 200 REALTORS® their monthly revenue will be $100,000.

While productive agents are ideal, the number of REALTORS® at a brokerage is likely the key to success. For the most part, real estate brokerage will recruit anyone with a licence. It doesn’t matter whether you have one week of experience or 20 years of experience the monthly desk fee is the key to success.

When I received my licence many brokerages offered me large incentives to join the brokerage. Few asked what I had to offer, it was more of a sales pitch in terms of why I should join their brokerage. When you think about it – it makes sense. The brokerage is most interested in the desk fee. Productivity is the bonus.

Real Estate Myth Buster #1 – “A large portion of a Realtor’s commission is paid to her/his brokerage!”

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“A large portion of a REALTOR’S® commission is paid to her/his brokerage!”  This is myth. Twenty some years ago REALTORS® paid hefty commission splits, upwards of 30%, to their brokerage; however, this is not the case anymore. The majority of successful REALTORS® pay a rather small fee to their brokerage on every transaction.

For example, I work at Fair Realty in Victoria, B.C. and I pay $150/month for something called a “desk fee” to my brokerage. In addition to that I pay $250 per transaction; whether the commission is $5,000, $10,000 or $25,000 I pay the same $250 transaction fee to my brokerage.

In fact, the 6th largest brokerage in all of Canada, Right At Home Realty Inc., also charges a similar amount: $79 per month, $275 per transaction, 100% commission. Right at Home Realty Inc. started in 2004 and has grown every year to over 2,300 REALTORS® in the Greater Toronto Area. You can look at what they offer to REALTORS® on their website -> http://www.joinrightathome.com/

Zoocasa now a member of the Victoria Real Estate Board!

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Zoocasa, an online service for people searching for a new home, is seeking to become a licensed real estate brokerage as it pushes further into the business.

The young firm, which is owned by Rogers Communications, does not plan to employ any agents of its own, president Carolyn Beatty said in an interview. But it is looking to become a brokerage in every province, starting with Ontario, with the aim of accessing the latest housing data. The company needs to become a licensed broker to get the most up-to-date listings information from local real estate boards.

http://www.theglobeandmail.com/report-on-business/economy/housing/zoocasa-makes-push-to-become-licensed-real-estate-brokerage/article10252888/