NO, NO, NO, NO, NO, NO…………………Consumer beware!!!!

While reading through this month's Florida REALTOR magazine, I noticed quite a few ads for 100% commission split offices. We've all seen them. They go something like this:

  • NO office fees
  • NO franchise fees
  • NO transaction fees
  • No waiting on commission checks
  • NO quotas to meet
  • NO sales meetings to attend
  • NO "junk charges" of any kind
  • ***Only $395 per closing!***

Now, the one thing that stands out to me, in these ads, is the fact that they don't say "experience required" or "only full time professional Realtors need apply" or how about this one "not for the faint of heart". I'm sure they don't mention these things because experience is NOT required. I'm sure they don't care if you fail or if you succeed. The deal is, hire as many REALTORS as you can, from all over the State, and if they close some deals we'll get our $395, if not, so what. Now, from a strictly monetary point of view, I guess this is a pretty good strategy. The fee is very enticing and you could probably get 100s of REALTORS to hang their license with you. Hey, if they can close 100 deals a month, the broker would "magically" make $40,000 a month, just for making their license available. Pretty good plan.

But of course, the one that suffers is the consumer. All these NOs, they advertise, also mean NO training and NO supervision. You are on your own. It's strictly a numbers game and its very scary. I have a Florida's Broker's license and could very well do this. But you know I take my job as a REALTOR very serious and couldn't even imagine sending untrained and unsupervised REALTORS out on the public. Plus, my license is very valuable to me. If I want to make $40,000 a month, personally, I prefer to work for it.

The State of Florida placed this little law into effect on July 1, 2006.

475.25 Discipline.–

(1) The commission may deny an application for licensure, registration, or permit, or renewal thereof; may place a licensee, registrant, or permittee on probation; may suspend a license, registration, or permit for a period not exceeding 10 years; may revoke a license, registration, or permit; may impose an administrative fine not to exceed $5,000 for each count or separate offense; and may issue a reprimand, and any or all of the foregoing, if it finds that the licensee, registrant, permittee, or applicant:

u) Has failed, if a broker, to direct, control, or manage a broker associate or sales associate employed by such broker. A rebuttable presumption exists that a broker associate or sales associate is employed by a broker if the records of the department establish that the broker associate or sales associate is registered with that broker. A record of licensure which is certified or authenticated in such form as to be admissible in evidence under the laws of the state is admissible as prima facie evidence of such registration.

So, with that in mind, I think I'll keep working for my money. This is definitely a case where a short term reward could cause you to be put out of business, permanently. If I'm doing my math correctly, I can hire a handful of associates and train them properly, hoping they close about 10 deals a month between them and make quite a bit more than hiring a massive quantity of untrained REALTORS and hope they close 100 deals. Much less risk and the possibility of a higher reward. Oh that's right, I forgot, my plan would require work. Wouldn't want to have to do that, now would we? What say you?

DISCLAIMER: These are not ads for major franchises. These are ads for mom and pop "rent a broker" agencies.

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