I was watching this show shark tank recently and one of the ladies made millions and millions of dollars after selling her realty company, how do they make money, renting properties?
There’s different realty business models. Here’s a few:
- Charge a flat fee per transaction (instead of a % of commission) so you might attract realtors that do many transactions a year who are interested in just paying a flat fee instead of giving away a chunk of each commission.
- Charge low to no fees and charge a certain percentage of the commission. One company I used to work for charged 25% of each deal.
- Charge a high(er) monthly brokerage fee to absorb the costs of doing business (hiring staff, having the best and newest technology to keep your realtors happy)
- Charge for private offices within the brokerage