Recruiting and retaining highly productive real estate agents is a struggle for real estate agents of all sizes. Finding alternative options to attract and retain new agents can help brokers have an edge over the competition.
This article will show how real estate agents/brokerage programs can use tuition reimbursement programs to attract talented 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 broker or using a specific company to help them find a broker.
For example, some agents like Keller Williams and Century 21 have recently built their own real estate school for their agents to attend. A non-brokerage example would be Agent Advice, which offers one of the leading programs offering tuition reimbursement to recently licensed real estate agents and helping them connect them with a brokerage career.
How Does a Tuition Reimbursement Program Work?
Tuition refund policies may vary, but the program will refund your tuition once you meet certain requirements. You pay tuition and receive a refund after completing a real estate licensing course. Often, the new agent will work for the brokerage firm that helped teach them, or they will be placed in a brokerage firm by the firm they worked with.
How to use a tuition reimbursement program
Brokerage firms have a few ways they can use tuition reimbursement to help recruit agents. Those who can afford it 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 costly and require upfront payments and ongoing maintenance to track and support the program. Another option that still requires a good level of ongoing maintenance but fewer upfront payments would be to have the agent partner with real estate schools. An option that requires no upfront costs or ongoing maintenance would be for the agent to use a free program like Agent Advice’s.
Benefits of using real estate agent training
Here are some of the benefits of using a tuition reimbursement program when recruiting prospective real estate agents into your brokerage firm.
- Allows access to more qualified candidates
One of the challenging factors that most people who want to get into the real estate industry face are the costs associated with obtaining a real estate license. On average, the cost of obtaining a real estate license in most states ranges from $400 to $1,000.
The high cost of obtaining a license discourages prospective agents from obtaining a license and reduces the number of available real estate agents that agents can hire. One of the goals of tuition reimbursement is to remove this cost barrier for the student, thereby allowing for more qualified prospects who are willing to be hired by brokers.
- Encourages students to complete the course faster
Most tuition reimbursement programs have a time frame for the student to complete their courses and pass the exam, or an incentive for a job or financial gain when they are done. For example, one of Agent Advice’s main offerings is a refund of course money once a potential agent attends an interview scheduled by an AgentAdvice recruiter after termination or passed the state exam.
With these types of offers, prospective agents are encouraged not only to complete the course faster, but also to ensure they pass the state exam with flying colors.
- Filters out less motivated agents
One of the benefits of these tuition reimbursement programs is that you ensure that the future agents have taken accredited courses and their progress can be monitored.
As a real estate agent, whether you choose to partner with a real estate school or use a program like Agent Advice, you have the benefit of knowing that you are hiring motivated, fully licensed, vetted and competent real estate agents, thereby reducing the cost of scouting agents.
key to take away
While brokers have some options for taking advantage of tuition reimbursement, not all programs are created equal. For brokerage firms that cannot afford to start a real estate school or meet the upfront costs of partnering with a real estate school, the Realtor Tuition Reimbursement program could be a great approach to attracting new talent to your business. From access to more qualified and licensed agents, a smoother recruitment process, and differentiating your business from other brokers without these types of benefits, this program offers many benefits.