Working as a nonemployee gives real estate agents a great deal of freedom to make their own schedules, but that independence also means they are responsible for nearly every expense related to doing business. The list of items they must pay for varies a great deal from agency to agency. You cannot compare firms until you know which ongoing expenses they pay.

Ongoing expenses can take a bite out of your income every month, but the size of that bite varies greatly from agency to agency. Some companies expect agents to purchase all of their office supplies, including stamps and photocopies. What about computer paper and ink cartridges, file folders, note pads — are those items you must buy? Long-distance calls made from the office can be a significant monthly expense if you must pay for them.

Try to think of all the expenses you might incur on a regular basis and ask which costs the agency pays.

advertising Expense

Every successful real estate firm advertises itself and its listings. You've seen ads in local real estate booklets, where photos of homes and other properties are accompanied by descriptive text. Does the agency pay for those ads or must agents pay a share to have their listings included?

What about classified ads in local newspapers? Are they an agent expense or does the firm offer help? Overall, what types of advertising does the firm cover?

Multiple Listing Service Fees

If the firm is a member of a local Board of Realtors® and Multiple Listing Service (MLS), their membership agreement usually requires that all affiliated agents become members as well. The agent nearly always pays for MLS and board fees. Developers, who only sell their own properties, may not be members of the MLS. There are also offices, usually in rural areas, who choose not to be members of the National Association of Realtors® and sell only their own listings. Some regions of the country have an MLS system that is not affiliated with the National Association of Realtors® so that, although other agents can access it, it is not available on the Internet via www.realtor.com.

Firms that offer services in multiple areas often belong to more than one MLS service and You'll have to decide if membership in multiple areas is required to work effectively with clients.

Some fees are paid on a yearly basis, but others might be billed monthly or quarterly. Ask your interviewer about the expenses associated with required and optional memberships.