How to Make the Most Out of License Renewals
Published by Urban Real Estate Services Ltd.
If you’re new to real estate or just ready for a change, license renewal time can be stressful if you’re not sure where to invest your money in building your business. Often, brokerages vary in fees from desk fees to monthly fees and even high ratio commission splits. Urban Realty made an effort to avoid these fees to provide the most value to our REALTOR® teams, such as including no monthly fees and flat yearly transaction cap. To get perspective, CREA’s 2016 Annual Report reveals that approximately $38,382,764 was spent in membership dues last year alone. So it is important to know where should you go to renew your licenses and what brokerage makes the most sense for you to get a financial benefit out of the all the costs associated with being a licensed REALTOR® in Calgary.
What You Need to Know for 2017 Renewals
RECA has made it easy for REALTORS® in Alberta to manage their licensing fees, but the costs add up quite quickly if you’re not sure where to allocate your income. Nevertheless, as a REALTOR®, you’ll be spending a few hundred dollars to renew your license and likely your registration with your brokerage.
Source: Real Estate Council of Alberta, 2015-2016 Fee Schedule
Therefore, you’ll want to make a decision to renew with the right brokerage and with the least amount of cost associated with you. You can start this process by asking the right questions to find the most value for your real estate business.
Who Can Guide You?
If you aren’t already with a brokerage, you should be looking for support on what options are available to you so you can choose what works best for your real estate business. Typically, we recommend our team members come to partner or broker for advice on where you can save more this year. But you should also have in mind, is your brokerage contributing to that cost or are they supporting your growth? An example of what that might look like is whether or not you have commission splits or monthly fees at your brokerage. For the REALTORS® at Urban Realty, we have created a simple fee structure that offers no monthly or desk fees, no commission splits and flat rate per transaction. So ask yourself: How much do those costs add to your annual membership and licenses and are you getting the most out of what your brokerage can offer?
When Do I Take Action?
For licensed real estate professionals in Alberta, RECA states:
“All industry professional authorizations expire on September 30 each year. To remain authorized, real estate, mortgage and real estate appraisal professionals must renew their authorization on or before September 30.”
Realistically, you will want to be actively looking for opportunities to renew your license and make any brokerage changes in early Spring. Keeping in mind multiple factors such as the housing market analysis from CREB® and the economic conditions that may be impacting your real estate business will help influence your decision.
Altogether, you should prepare in advance for any future renewal fees so you can avoid a financial headache later on. Make sure you have clear communication with your broker to answer any questions you may have and get the most out of your brokerage’s offerings. If you are not sure where to start and unsure if whether or not you are getting the best support possible, we always welcome new or seasoned REALTORS® to contact us for help. We might just be the solution you are looking for.