RE Company offers 1 year deal! Is this too good to be true?

Question

Hello everyone,

I just found out my cousin who is taking classes at a RE company called Century 21. The contract states that if classes are taken with Century 21 (around $400 for classes and another $185ish for exam) that they will hire me and let me work for them for 1 year (if I pass the exam). I was wondering if anyone  has ever heard of something like this? If you have how was it and what RE company was it for?

To me this sounds a little to good to be true, because after you sell your first property Century 21 will reimburse the $400ish dollars for the classes. My cousin sent me a picture of the contract, it looked simple so I became a bit skeptical. I know that Century 21 is a big RE company out here in Southern California but I'm not sure if it's country wide.

Any information will be great since I really want to get my RE license and start RE career. I've waited to long and I need to start taking some action.  If this is true signing with them would be a good idea, since they guarantee that I will be able to work with them for at least 1 year.

Thanks again

Kevin

Chris Soignier · Answer

Almost any real estate brokerage will "let" you work for them one year or longer.   You'll be a 1099 contractor, so there's very little fixed cost to having you on their team.    What's the commission split?     They're liking better that's how they'll get their investment back.

David Dachtera · Answer

I also took the C21 agent license class before IL went to brokers (formerly agents) and managing brokers.

At that time, you needed to be sponsored by a broker to take the license class / test. So, that's probably where that part comes from.

I disagree that "it sounds too good to be true" unless they're offering draw against future commission. Then it only sounds like it. In truth, it's one hell of a commitment on your part - they'll want to get paid somehow, and if not "against future commission", you might get stuck coming out pocket to reimburse them for any draws you taken to stay alive and sheltered.

My $0.02...

David J Dachtera

"Success is not a destination. Failure is not an event. Success is a process, failure is a choice."- DJ Benedict

Nick C. · Answer

Sounds legit, there's no risk on the brokerage's part, and plenty of reward if they give you a bad commission split.

More important than how long they "let" you work there is what is the commission split and what training/leads/support are they going to offer?

Kevin Linh · Answer

I found out that they offer 1 free trail class which I will go and take (it's free and I can ask more detailed information while I'm there). Thanks for all the advice everyone.  I will go to the free class with a little caution and make sure I have all my questions written out so that I don't forget to ask them. Will report how it goes next week.

Thanks again for the help.

Kevin

Jake Thomas · Answer

This doesn't sound like anything special to me. From start to finish for getting licensed it was about $1,500 for me.  But you likely have to be under their brokerage for one year. Personally I am not a fan of larger brokerages as they take to much % of your commission. If $900 is incentive enough to start a new career you should think long and hard about it. If you can't afford the $1,500 to get licensed how are you going to survive till your first commission check which could take months.

Maggie L. · Answer

There are multiple brokerages where I work that had a free or reduced price class incentive. What makes a much bigger difference is the split, the fees (E&O, desk fees, tech fees, franchise fees, plus MLS, supra) and what they offer e.g. is there mandatory coursework after you start, and do you need to pay? Is there any help with marketing costs, or any required purchases?

Talk to a few brokers to get a feel for the local market. I get a 70-30 split with a cap, which may or may not be a better deal than someone else. There areally several national brokerages known for recruiting as many new agents as they can (high turnover rates) so your cousin should shop around and consider the office environment e.g. personalities, level of support for new agents, expectations, before committing.

Wayne Brooks · Answer

There's nothing "too good to be true" about it.  As others have said, they don't pay you anything unless you do a deal, where they'll get paid also.  There may be monthly office fees, and there will be annual mandatory realtor/MLS fees, mine are about $900/yr.

Valerie Couch · Answer

Sounds like a good deal to me!  As everyone has said, you're not technically employed by the brokerage so if you make money, they make money.  Again,  as mentioned, make sure you negotiate a good commission split and training/guidance from your broker or a manager.  I don't know what is standard in your market but I would say 50-75% is common in Ohio.

My classes were almost $1,500 (with a 3rd party school, not brokerage) PLUS exam fees.  I believe there is one local brokerage who offers classes as well but for around the same cost, maybe a tad less.  Most brokerages, to the best of my knowledge, do not reimburse cost of classes.  But again, every market is different.

To me it sounds like a win-win. I say go for it!

Good luck!

David Hunter · Answer

We have Century 21 here in Cleveland, but they have a very tiny little market share here.

Any real estate company will let you work for them.  The reimbursement part for your classes... could be true.  It's not a lot of money to the company if you're selling.

You could also contact the broker and chat with them.

RE Company offers 1 year deal! Is this too good to be true?

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