Brokerage

The agent collector model of business and how it hurts real estate agents

Broker Notebook

Exploring various business models for real estate brokerages makes me realize how broken some of the brokerages are. The focus isn’t on real estate clients; it is on how many leads can be captured and how many agents can be collected. To begin with, real estate companies do not exist just to make a profit; there is a little more to it than that. Real estate companies are about having a real estate broker because in most if not all states real estate agents have to work under a broker. Brokers are actually responsible for the actions of their agents. Most consumers would be shocked to learn this, and I know some agents and brokers who would find it disturbing, too, but I am not making it up. Check your local laws. I have strong evidence that on two recent transactions I worked with unsupervised agents. One was with a small company. He was a new agent, and he gave his client information that isn’t true. I wish I could say hilarity ensued, but that homebuyer is seriously tick...