Would you take this deal?
March 15, 2009 5:49 PM Subscribe
P/T rookie real estate agent in NYC: is 25% of 3% fair?
posted by anonymous to work & money (10 answers total)
I'm a freelance research analyst who's about to get my real estate salesperson's license in the state of New York to take advantage of an interesting opportunity. Someone who's involved as a partner in two unrelated corporate finance deals I'm working on offered to be my sponsoring broker and pay me 25% of his share of the standard 6% commission he's splitting with another broker for every condominium unit I help sell. Is this fair compensation for someone who's just getting started? The deal is I'd commit to two hours of on-site work per day, showing units and answering questions about the property by phone while there. Since the units average a cost of 1.4 million dollars, I'd stand to make around 21 thousand dollars on each one, give or take. Even if nothing sold for awhile, I have plenty of other sources of income, so that isn't a consideration.
I know NYC real estate law states that if you're working for commission, you can't be required to put in a fixed number of hours each week. However, I really don't have a problem with it, since left to my own devices, it's almost guaranteed I'd work far more. In effect, it puts a nice cap on the "part time" commitment, which is a lot of the reason I'd be making 25% and not more.
I'm inclined to think this sounds reasonable, especially given that the broker said it could be re-negotiated as take on more responsibilities and gain more experience. Other positives: the site is a few blocks from where I live and work, and two hours a day leaves me more than enough time for all my other projects.
I'm going to insist that everything be spelled out precisely in a work agreement --"good contracts make for good relationships"-- but I'd like some second opinions on whether or not this is a fair deal, and would be interested to hear your thoughts and experiences. If you can think of any books or websites I should be reading to get up to speed, I'd be glad to hear that too. Thanks!