How to onboard a new agent - Colorado

[Ruben Morgan]

My wife is a Realtor in Colorado. She's been doing relatively well and she's considering moving brokerages to not have to pay such a high commission split.

We have a friend that has his own Real Estate brokerage, but he's never hired any agents before. He offered to let my wife hang her license under his brokerage as long as she can figure out the process on how to get registered properly and she had to buy her own E&O insurance.

Does anyone know how the process of adding a Real Estate agent to a brokerage works?

Thanks

[Bill S.]

@Ruben Morgan so it's not hard but the broker she is hanging her license with should know the answer. The fact that they don't tells me she can't work for him and here is why. Colorado has independent brokers. We work for ourselves or have our own companies. One woman/man shows. We don't have to take the broker management course. After we have worked two years under a licensed broker we can hang our own shingle. Very easy to do assuming you don't have any active listings. If you want to be a full broker (employing broker is the term), you have to take 30 additional hours of education and part of that education is how to onboard agents as well as all the ins and outs of managing brokers that have no idea what they are doing from a legal perspective. My recommendation would be for her to find one of the local flat fee brokerages and hang her license there as opposed to the friend route. They will at least know how to make the transition. If she doesn't want to do that and has the two years experience, then she should open her own firm. Frankly the cost is about the same but you can make the decision after weighing the options.

On a side note, if she is generating her own business and has listings then many local companies with offer a discount on their costs. The reason being her listing will attract business to their brokerage. If she is primarily a buyers agent and just wants to keep more of the check then the low fee brokerage route is the way to go.