As a Real Estate Agent, Do I Need an Office?

Is it important to have an office if you are a Real Estate Agent?

Well, it's kind of a tricky answer to that.

First, it's important to know the four main types of real estate agents.

Referral Agent - Has a license, knows people that are looking to buy, sell, or invest in real estate, takes those people and gives them to other full-time Realtors, then collects a little commission (it could be 20 to 30% of whatever that other agent gets) for buying or selling for that person you referred.

Part-time Single Agent - Typically has another job that supplements the income, might complete 8 to 10 deals per year, and usually does real estate just for fun.

Full-time Single Agent - The most traditional type of agent, has real estate as their main job, does all of their own marketing.

Team Agent - Could be somebody who runs a team of real estate agents, or works on a team of agents.

So, do all of these types of agents need an office space?

As a referral agent, you won't need an office. Your job is mainly just to network with people and then give them to other agents. Since you won't need to meet with people in an office like setting, you probably won't need an office. Your best bet is to work for a brokerage that charges you the least amount of money and gives you the best commission split.

Next is the part-time single agent. For this type of agent, it really just depends on you. If you want to be in an office so that you can meet people and absorb the real estate knowledge going on around you, that may be advantageous for you. However, if you are the type of person that doesn't need that and are fine working on your own with your own office space at home, then even as a part-time agent, you don't need an office space. 

Now let's talk about your traditional real estate agent, full-time single agents. This again depends on your personality and personal preference. If you want to be in a real estate office environment with other agents who can answer your questions right then and there, then an office space may be the way to go. If you're fine with calling another agent and getting the information over the phone, then maybe you don't need an office. Starting out as a new agent, I'm sure you'll want to keep your costs as low as possible, so you can cut the brokerage costs (especially if you aren't getting any value from them), and work for a brokerage that allows you to work from home.

Lastly, team agents. Depending on the structure of the team, teams are typically designed for support and team camaraderie; learning from those people that have vested interest in you. In this case, you may want an office, but you don't necessarily need an office as a team agent either. Although, you will need some office access to get the mentorship and the accountability from the other agents on the team.

So what's my answer in all this? It depends on you. It depends on your personality. If you like to interact with people all the time and you need that, then go for it. If you don't, then cut the expense that the traditional brick and mortars are taking out of your commission to pay for those building expenses, which can be a lot of overhead.

Now, if you do find a brokerage that doesn't support that or if they do at a fee, just know that they are charging franchise fees, commission splits, and other sorts of tech fees on top of that just for you to maintain your license under that brokerage. So make sure you do your research before you get into it and make sure regardless of anything else, that when you start initially getting into real estate, get yourself to the next level and find a mentor or coach that has your best interest in mind. It's going to keep you accountable for what you're doing.

If you are interested in becoming a Team Agent at the Whittemore Group, check us out here!

Also check out the 7 Books You Should Read in Your First Year of Real Estate!