Residential real estate agents only get paid when they sell a house.  Not when we list a house and not when we show you property – only when we close a deal and a home exchanges buyers’ hands.  We are independent contractors and are not considered to be employees.  This means that we get no medical benefits, nor do we get our employer to match our 401Ks.  We, Realtors, essentially run our own businesses and are responsible for our own survival.  There are no salaries, no expense accounts and no bonuses.  We only get paid when we close a deal – 100% commission.

To break it down further, most brokerages work one of two ways:

Option 1 – Agents pay the company a “desk fee,” which is like rent.  Agents pay an annual fee to be a part of that brokerage and use their office space.  These arrangements typically yield a higher commission split between the agent and the broker, but the agent pays his or her rent no matter what.

Option 2 – Agents do not pay a desk fee, but give a higher percentage of their commissions to the broker.  In other words, you don’t have to pay for your desk, but you do give the office a portion of your money each and every time you sell something.

Obviously, it depends on how much business each agent does and what their split is, to determine which option is more beneficial to that particular agent.  However, aside from commissions, there are other factors as to why an agent may work for a specific brokerage.  I for one, chose to work for Prudential California Realty, because we are by far the largest real estate company in San Diego.  Prudential has an great reputation and a great team of leaders running the company.

With that said, not every agent within Prudential is the same.  Like any service industry, you should do your homework and work with someone who knows what they’re doing and someone you like.

If you have any other questions, or know of someone who might need some help, feel free to contact me.

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Here’s why you should work with a Prudential California Realtor….

San Diego County

• More than 40 San Diego locations include 2,200 real estate professionals whose sales volume was more than $7.9 billion in 2006, 18.14% of the county’s total.
• Has ranked No. 1 in sales volume for 10 consecutive years on the San Diego Business Journal’s list of San Diego’s largest residential real estate companies.
• Is the largest real estate advertiser in the San Diego Union-Tribune and Dream Homes magazine.
• Offers state-of-the-art technological and marketing tools showcasing properties 24/7.
• Is a full-service company offering mortgage, title, escrow, home warranty and homeowner’s insurance services to our clients.

California

• Has 95 locations throughout Southern California and the Central Coast and more than 5,300 sales associates.
• Posted sales volume of $19.7 billion in 2006.
• Had 26 agents in the top 100 and 2 offices in the top 10 in 2006 among more than 68,000 Prudential agents and 2,110 offices nationwide.
• Offers cross-marketing efforts from San Luis Obispo to Chula Vista.

Nationally

• Affiliated with the prestigious Prudential Real Estate Affiliates, with 2,110 offices and 68,000 sales professionals ready to exchange buyer and seller information to or from anywhere in the nation.
• Prudential Real Estate Affiliates did $187.2 billion in sales volume in 2006 and 547,000 transaction sides.
• Of the top five power brokers nationwide, Prudential California Realty has the most productive agents, according to an article in National Relocation and Real Estate Magazine.

Click here to see some more statistics.