TRG Top 3 - Hidden fees traditional real estate firms charge their agents
TRG Top 3
Hidden fees traditional real estate firms charge to their agents
At Tyre Realty Group, we have the opportunity to speak with a lot of new agents looking to affiliate with a new firm. During our time talking with prospective agents, we have found that many of the new agents we meet with are unfamiliar with hidden fees found at traditional real estate firms. This week's TRG Top 3 focuses on the top hidden fees found at most real estate companies.
Copies and other Marketing Materials
Traditionally, agents pay for both black and white and color copies at real estate firms. In real estate, agents are constantly printing items for their customers or clients. For instance, when first meeting with a prospective client, an agent will want to print marketing materials to show a customer why it is advantageous to work with that agent. Even materials such as the Working with Real Estate Agents brochure costs the agent money and is not provided by the company for free. Then, a good agent is also printing out MLS sheets for homes that are being shown. If the agency does not cover the cost of these copies, the agent will receive an invoice for the materials used.
Business cards and signage are other commonly used items that agents will need when pursuing a career in real estate. Traditional real estate firms do not cover the cost of these necessities either. On average, the cost of marketing items and copies can be around $8,500 for the year. After paying for the real estate class, national and state license tests and joining the local National Association of REALTORS®, most new agents are not prepared to cover these up-front costs. After these initial costs, most new agents are not prepared to pay for the necessary marketing materials in order to start making a profit in real estate.
At TRG, all marketing, including copies (black and white and color) and business cards are covered by the company. Our agents never receive a bill for any of their marketing materials.
Leads and Lead Management Software
Leads are the lifeblood of real estate agents. A big lesson for new agents is understanding that most of their sphere of influence is not buying a home from them. To maintain a sustainable income, a new agent needs to have plenty of leads or potential customers that have shown an interest in buying or selling real estate. The most common way to attain leads is to pay for them through third party websites such as Zillow, Trulia, and Realtor.com. To work these leads correctly and to maximize profit, we recommend agents use Customer Relationship Management (CRM) software. CRM software helps agents keep in contact with leads while keeping all communication and necessary information organized. On average, the yearly cost to pay for leads and CRM software will start at about $20,000.
TRG pays for all leads and lead management software for its agents. Actually, TRG is the leader in buying Zillow leads in Eastern North Carolina with over 15,000 leads that any of our agents can work.
Many big-box firms boast that they have the best training for agents. TRG agrees that new agents and veteran agents alike need to have constant training. For new agents, it is imperative that training at the beginning is implemented. Unfortunately, the real estate licensing course only focuses on the laws of buying or selling real estate, and not the actual sales training. New agents need to learn how to ask basic questions and sales techniques to start earning money. While traditional companies have training courses available, these cost money. There is a popular, national firm that encourages their new agents to take a training course that costs $850 with a supplementary course for $99.
At TRG, we believe that our agents are a direct representation of our company. In addition, we also recognize that if our agents are not successful, then our agents will not stay with the company for very long. Thus, at TRG, we provide all of our training for free. New agents are able to take advantage of over 75 years of combined experience with over 2,000 homes sold. With monthly training events, our veteran agents also stay atop of the competition.
Tyre Realty Group is proud to be an un-traditional real estate company. We understand that the cost of entry in real estate is high at traditional real estate firms. We strive for our agents to be able to come in and start selling as soon as possible. If you are a new or prospective REALTOR® and would like to apply or find out more information about joining our successful firm, please visit www.TRGcareer.com.