New brokerage based out of home

[das317]

I am currently working to get my brokers license and will be opening an office. I am going to be offering a very aggressive commission split and as one of my main ways to keep costs down I am looking to have my office based out of my home. I do not want to have agents in my house. I would want all the agents to work out of their house and meet clients at other locations. I am wondering how agents would feel about not having an actual office to ever go to. Has anyone that has done this with the goal of recruiting agents had a hard time recruiting agents? Do agents or clients if they are made aware of this uneasy with that idea? How do you handle showings? Do you have agents call directly to the listing agent to set up a showing or use one of the eshowing type places? How do you handle earnest money deposit checks? The listing agent would need to get the check for settlement, but if I don't want people in and out of the house, how else can you work this? How do you handle conveyancing? Do you still have staff that handles that or do you have the title company handle it or the listing agent?

Any help would be appreciated.

[FindCRE]

So what are you offering, why would an agent choose your company?

[Jason Painter]

The commission split would be the only reason I would guess.

[das317]

I would be offering a 100% commission and charging a monthly fee and a per transaction fee. I would be setting up everything to do be done online. I would be looking for agents with enough experience that they wouldn't need the hand holding, although I would be very available to them as they needed. I know that a lot of agents don't go into the office often(myself included) and don't need the office environment to get themselves motivated. I am looking to focus savings from not having an office expense toward technology that will make my job and the agents jobs more efficient.

[FindCRE]

I know in my market there are many brokers who offer high commissions, however they also offer office space and some name recognition.

I think it will take more than just a high commission split IMHO. Brokerages that charge a monthly fee usually do so because they have an office for the agents to use.

[gregharaksin]

I would rather meet clients at an office. And i think clients would like to know that I have an office.

There are a couple of places around my area that offer 100% commission and charge a minimal transaction fee (@$500), and maybe a small desk fee, and EO, but they do give access to an office. And they have some name brand recognition.

You are carrying a lot of liability, and are responsible for these agents. Where are their files going to be kept?

my 2 cents.

[Jason Painter]

I know of a agency in Florida that does 100% with a 295.00 per transaction fee with no monthly or 90% and no monthly fee. They expect the agents to work out of their homes.

I would guess files would be digitized and emailed to the brokers office.

[jasoncrouch]

I guess it is appealing to think about keeping costs down, but maybe you should consider starting this way, then shifting to an office later as you grow and have enough agents. I have a feeling that you will have difficulty attracting good agents, which means you will likely have more headaches to solve and fires to put out. Just my opinion -

[Bigtoe]

Before you can even think about attracting successful agents you have to prove that you can be successful at doing what you propose. I started working out of my house 13 months ago. Most agents wrote me off just like I write off new agents who decide to work out of their house.

Fortunately for me, I have 18 years experience and I wag a very long tail on the internet. My business is growing and I expect to start selectively recruiting in another year or so.

[jasoncrouch]

This is great advice from Bigtoe.