Question: Many of my friends have been encouraging me to become a real estate agent, especially since the real estate market is currently very active. How does one decide which real estate office to join after obtaining the license to sell or practice in real estate? There are many real estate companies in the metropolitan area, and I am unable to determine how to find the right company for me. Please advise.

Answer: There are a wide variety of real estate firms, ranging from very large companies, "mom & pop" shops, and even one-person operations.

There are national firms and local concerns. There are companies that specialize -- in such areas as commercial or farm property -- and there are full-service brokers who cover all aspects of real estate. There are local firms that concentrate on a particular location and companies with offices in several jurisdictions. And finally, there are companies that offer other services, such as insurance or mortgage money, in addition to real estate brokerage.

In recent years, many real estate companies have allied themselves with other real estate service providers, so as to give the potential purchaser a "one-stop" shopping center.

Thus, from this diverse list, you have to make a very difficult decision. Perhaps one of the most important factors is the issue of compensation.

Some brokerage companies pay a percentage of the business you generate -- the earned real estate commission. And from my understanding, the percentage paid to the real estate agent varies from company to company.

Other real estate firms will permit you to be an "independent contractor" -- letting you use the name of the company but for practical purposes leaving you on your own. For the use of the company's name and back-up support services, you pay a flat monthly fee to the real estate company.

There's a lot of mobility in real estate. Agents often switch from company to company. This is perfectly permissible and, indeed, there comes a time when a good real estate agent has learned the field, built up a good name and a good clientele and opens an independent real estate brokerage firm.

How does one go about finding the right firm? I have discussed this with a number of real estate professionals, and there is no simple answer. Some agents found that a small firm gave them the best experience; others expressed the opposite opinion, saying they had learned an awful lot by jumping into a large firm, where there were many agents and brokers with whom to discuss their issues and concerns.

My own suggestions are:

• Choose a firm in an area in which you are comfortable. If you live in one area, you probably should not work in a distant area because you may not be familiar with that area.

• Talk to the manager or owner of the office. Will that person be able to give you enough time, on a daily basis, to really teach you the trade? The last thing you want to do is find yourself lost without supervision.

• Before committing yourself to a particular firm, spend some time sitting in the office so that you can get a flavor of the people with whom you will be working. All professional services -- whether real estate, law or medicine -- depend heavily on people-to- people relationships.

  If there is a lot of tension, pressure or competition within a particular office, you may want to avoid it. I have seen too many real estate offices where everyone was grabbing the telephone, hoping to get that million-dollar listing. This may be good for the professional with experience, but may not be the best way for you to gain the necessary knowledge of the industry.

In the final analysis, only you can decide your own needs. Do not jump into the decision, however, without spending time to review all the factors. And, before you decide to become a real estate agent, make sure that this is really what you want to do. Today, the market is active; but for several years during the 1990's, real estate was in the doldrums -- and many agents had to find other means of employment just to be able to keep alive financially.

There is no guaranteed pot of gold at the end of the real estate rainbow.

For more articles by Benny Kass, please press here.

Published: September 10, 2001

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