A recent graduate of Garden State Real Estate Academy’s real estate school called today and said she interviewed with a Cherry Hill real estate broker. “They wanted a $400 onboarding fee and then will charge me $110 a month in what they call ‘desk fees’,” she said. “Does that sound right to you?”
Unfortunately, it sounds very wrong to us—but very common.
A couple of large franchised real estate brokerage firms earn millions of dollars for their brokers and managers not from the sales their agents make, but from the “desk fees” they charge their agents—regardless of whether those agents are doing well or starving.
Choose carefully.
As a newly licensed real estate agent in New Jersey, you’re probably eager to kickstart your career and begin closing deals. You’ve invested time and effort in getting through real estate school and passing the real estate licensing exam. Now it’s time to choose the right brokerage to partner with. But with so many options out there, how do you decide which broker is the best fit for you?
Don’t Spend Money You Don’t Need to!
One of the most significant decisions you’ll make early in your real estate career is whether to join a brokerage that charges monthly fees, often referred to as “desk fees.” Some brokers might try to sell you on the idea that these fees are a necessary investment in your career, but at Garden State Real Estate Academy, we strongly disagree.
In this blog, we’ll explore why you should think twice before signing up with a broker that charges monthly fees, especially if you’re a new agent. We’ll also provide guidance on what to look for in a brokerage and why avoiding these fees can be one of the smartest moves you make as you embark on your real estate journey.
The Reality of Monthly Fees: Who Really Benefits?
Let’s cut to the chase: Monthly fees charged by some brokers are often more about padding the broker’s pockets than helping you succeed. In New Jersey, one prominent broker charges new agents a hefty $110 per month in desk fees. For an agent just starting out, this can be a significant and unnecessary financial burden.
Why $110 a Month Can Be a Problem
- Financial Strain: When you’re new to the industry, income can be unpredictable. You might not close your first deal for several months, and during that time, those $110 monthly fees add up quickly. There are othger fees that you’ll HAVE to pay: MLS dues, Board of Realtors® fees, Errors & Omissions insurance==all of which can add up to a couple of thousand dollars—without these “desk fees.” For a new agent struggling to establish themselves, this can lead to financial strain.
- No Guarantee of Success: Paying a monthly fee doesn’t guarantee that you’ll have more clients or close more deals. In fact, these fees often do little more than cover the broker’s overhead costs, with little direct benefit to you.
- High Pressure: Knowing that you’re on the hook for $110 every month can create unnecessary pressure to make sales. This might lead you to take on clients or deals that aren’t a good fit, just to cover your costs.
Who’s Really Making the Money?
The reality is that these monthly fees primarily benefit the broker, not the agent. While the broker enjoys a steady stream of income, you’re left shouldering the risk. This model can be particularly damaging for new agents who are still learning the ropes and trying to find their footing in a competitive industry.
What to Look for in a Brokerage Instead
Rather than tying yourself to a broker that charges desk fees, consider these alternatives that can offer you better value and support:
-
Free Training and Mentorship
One of the most important factors for new agents is access to high-quality training and mentorship. Look for a brokerage that offers comprehensive training programs without charging you extra. A good broker will invest in your success by providing you with the tools and knowledge you need to thrive, without expecting you to pay for the privilege.
-
No Monthly Fees
There are many excellent brokers in New Jersey who do not charge monthly fees. These brokers typically offer a commission split, where they take a percentage of the commission from each sale you close. This model aligns the broker’s interests with yours—if you don’t make money, neither do they. This encourages the broker to actively support your success.
-
Supportive Environment
A good brokerage should offer a supportive environment where you can ask questions, get advice, and learn from more experienced agents. Look for a broker who fosters a collaborative atmosphere, rather than one who charges you for every little thing.
-
Access to Resources
Some brokers may not charge desk fees, but they still offer valuable resources like marketing materials, office space, and technology tools at no additional cost. These resources can be incredibly beneficial as you build your business.
The Hidden Costs of Desk Fees
While a $110 monthly fee might not seem like a lot at first glance, the costs can add up in ways you might not expect:
-
Opportunity Cost
Every dollar you spend on desk fees is a dollar you’re not investing in your business. Whether it’s marketing, continuing education, or networking, there are plenty of better ways to spend your money as a new agent.
-
Psychological Pressure
Knowing that you’re losing $110 every month can create a sense of urgency and stress that isn’t conducive to thoughtful, strategic decision-making. You might rush into decisions or accept less-than-ideal terms just to cover your fees, which can harm your long-term success. As another agent told us recently, “Paying those monthly fees to the broker caused stress at home. My wife kept asking, ‘What are they doing for you? Where are the leads? Every time I open up a new credit card statement there’s more charges that broker is billing us for.”
- Diminished Earnings
If you’re already operating on a tight budget, those monthly fees can significantly eat into your earnings. When you factor in other business expenses like marketing, transportation, and professional dues, your take-home pay could be much lower than you anticipated.
Why Garden State Real Estate Academy Advocates Against Monthly Fees
At Garden State Real Estate Academy, we’re committed to setting our students up for success. We believe that new agents should focus on building their careers, not on paying unnecessary fees that benefit brokers more than agents. Our experience with students who have gone on to successful real estate careers has shown us that the best brokers are those who provide value without asking for monthly fees in return.
As one graduate of our real estate school said recently, “I just quit [large franchise broker] after two years of paying their outrageous desk fees because guess what? They weren’t even providing a desk! Like most Realtors®, I mostly work from home. I just switched to another broker who’s giving me more services, more marketing support, more coaching, and a higher commission split—without charging me a dime in desk fees.”
Supporting Your Success
Our curriculum at Garden State Real Estate Academy is designed to give you the knowledge and skills you need to thrive in the real estate industry. We’re proud to be New Jersey’s top-ranked real estate school, with more than 650 5-star Google reviews from satisfied students. Our flexible learning options—whether online via Zoom, in the classroom, or self-paced—ensure that you can get the education you need on your terms.
Making Smart Career Choices
We encourage our students to make informed decisions when choosing a brokerage. By avoiding brokers who charge monthly fees and instead seeking out those who offer free training and support, you’ll be in a better position to succeed in your new career.
Conclusion: Choose Wisely for a Successful Start
Starting a career in real estate is exciting, but it’s also challenging. The choices you make early on can have a lasting impact on your success. While it might be tempting to join a well-known broker that charges monthly fees, we strongly discourage this. Instead, look for a brokerage that offers free training, mentorship, and support without charging you just to be part of the team.
At Garden State Real Estate Academy, we’re here to guide you through every step of your real estate journey, from getting your license to making smart career choices. Visit us at www.GSREA.com to learn more about how we can help you achieve your real estate dreams.
#NJRealEstateLicense #RealEstateSchool #NoDeskFees #RealEstateCareer #GardenStateRealEstateAcademy #BestRealEstateSchool #NJRealEstateAgents #RealEstateSchoolNearMe #OnlineRealEstateClasses
