Recruiting and retaining highly productive real estate agents is a challenge for real estate brokers of all sizes. Finding alternative options for attracting and retaining new agents can help brokers gain an edge over the competition.
This article will reveal how real estate brokers can take advantage of tuition reimbursement programs to attract qualified real estate agents in 2022.
What is tuition reimbursement?
A tuition reimbursement program pays for an agent’s pre-licensing courses once certain milestones are met. This is often done in exchange for the agent working for the brokerage or using a certain company to help them find a brokerage.
For example, some brokerages like Keller Williams and Century 21 have recently built their own real estate school for their agents. A non-brokerage example would be Agent Advice, which offers one of the leading programs that offers tuition reimbursement to recently licensed real estate agents and helps them connect with a broker.
How does a tuition reimbursement program work?
Tuition reimbursement policies may differ, but the program reimburses your tuition once you meet specific requirements. You pay tuition and then receive a refund after completing a real estate license course. Often the new agent will work for the brokerage that helped them pay for their tuition or will be placed in a brokerage by the company they worked with.
How to Use a Tuition Reimbursement Program
Brokers have a few options on how they can take advantage of tuition reimbursement to help acquire agents. For those who can afford it, they can follow the same path as Keller Williams and build their own school. Others may choose to partner with real estate schools to become resellers, but this can also be expensive, requiring up-front money, as well as ongoing maintenance to keep up with and support the program. Another option that still requires a fair amount of ongoing upkeep but less upfront money would be for the brokerage to partner with real estate schools as an affiliate. An option that requires no upfront cost or ongoing maintenance would be for the brokerage to use a free program like Agent Advice.
Benefits of Leveraging Education as a Real Estate Broker
Here are some of the benefits of taking advantage of a tuition reimbursement program when recruiting aspiring real estate agents to your brokerage.
- Allows access to more qualified candidates
One of the difficult factors faced by most people looking to enter the real estate industry is the costs associated with obtaining a real estate license. On average, the cost of obtaining a real estate license in most states is between $400 and $1,000.
The high costs of obtaining a license discourage potential agents from obtaining a license and reduce the number of real estate agents available to be hired by brokerages. One of the goals of tuition reimbursement is to remove this cost barrier on the part of the student, thereby allowing more qualified prospects ready to be hired by brokerage firms.
- Encourages students to complete the course faster
Most tuition reimbursement programs will have some kind of deadline for the student to complete their course and pass the exam, or an incentive for employment or financial gain when they have finished. For example, one of Agent Advice’s main offerings is reimbursement of their tuition money once a potential agent attends an interview scheduled by an AgentAdvice recruiter. after having programmed or exceeded the state exam.
With this type of offer, potential agents are encouraged not only to complete the course faster, but also to ensure that they pass the state exam with flying colors.
- Eliminates the least motivated agents
One of the benefits of these tuition reimbursement programs is that you ensure that prospective agents have completed accredited courses and their progress can be monitored.
As a real estate broker, whether you choose to partner with a real estate school or use a program like Agent Advice, you will have the benefit of knowing that you are hiring motivated, fully licensed, screened and knowledgeable real estate agents. , thus reducing the cost of reconnaissance agents.
Take away key
Although brokers have a few options for how they can take advantage of tuition reimbursement, not all programs are created equal. For brokerages that cannot afford to start a real estate school or meet the initial cost of partnering with a real estate school, Consulting’s Tuition Reimbursement Program agent can be a great approach to finding new talent for your business. From access to more qualified and licensed agents, to a smoother recruiting process, and to differentiating your business from other brokerages without these types of benefits, there are many benefits to this program.