Maybe you’ve been working as a real estate agent for a while and you’re not getting the support you need or you’re just ready for a new real estate broker. Choosing a real estate brokerage to work for isn’t easy, as they are not all created equal.
When you’re faced with trying to figure out which broker to choose, you may need a little help. Below, you’ll find the ultimate guide for how to choose a real estate broker. This guide will introduce you to everything you need to know about choosing the right real estate broker to sponsor you.
Not All Real Estate Brokers are Created Equal
- The way they operate
- The general structure of the brokerage
- The philosophy of the brokerage
Finding the right real estate brokerage for you is often more about the fit than anything else. While the commission split may be important to you, ultimately, choosing a real estate broker may come down to the actual culture of the brokerage.
Making your brokerage decision isn’t easy and a bit of a hurdle might be finding a brokerage you feel comfortable working with. Not all real estate brokers are the same as they can vary in many ways including:
- The way they operate
- The general structure of the brokerage
- The philosophy of the brokerage
Finding the right real estate brokerage for you is often more about the fit than anything else. While the commission split may be important to you, ultimately, choosing a real estate broker may come down to the actual culture of the brokerage.
Some of the questions you may want to ask include:
- Do you prefer to work remotely or do you want an office to go to each day?
- What type of real estate broker do you want to work for?
- How much support do you want from your brokerage?
- Do you prefer a smaller or larger brokerage?
- Is it necessary for you to be around coworkers regularly or do you prefer to work more independently on your own?
Answering these five questions will tell you quite a bit about the type of real estate broker you should choose.
Maybe you’ve been working for a brokerage for the past year or two and they just aren’t a good fit. Sometimes, new real estate agents don’t realize how they prefer to work and the type of brokerage they prefer, until experiencing what it’s like to work for a real estate broker.
Some of the questions you may want to ask include:
- Do you prefer to work remotely or do you want an office to go to each day?
- What type of real estate broker do you want to work for?
- How much support do you want from your brokerage?
- Do you prefer a smaller or larger brokerage?
- Is it necessary for you to be around coworkers regularly or do you prefer to work more independently on your own?
Answering these five questions will tell you quite a bit about the type of real estate broker you should choose.
Maybe you’ve been working for a brokerage for the past year or two and they just aren’t a good fit. Sometimes, new real estate agents don’t realize how they prefer to work and the type of brokerage they prefer, until experiencing what it’s like to work for a real estate broker.
Independent vs. Franchise Brokerage
As you start looking into how to choose a real estate brokerage to work for, you will likely encounter both independent and franchise brokerages. Both types of brokers are rather different and offer different benefits.
Choosing an Independent Real Estate Brokerage
An independent broker will often be referred to as a mom-and-pop brokerage or a smaller brokerage. They range in size from serving a single community to several cities to statewide coverage.
According to the National Association of REALTORS, 51% of agents prefer to work for independent firms. It’s nearly a coin flip, as this means 49% of agents prefer a franchise brokerage.
Those preferring to avoid the corporate culture and work a bit more independently will likely prefer an independent real estate broker.
Choosing a Franchise Real Estate Brokerage
On the other side of the coin, a franchise brokerage comes with its’ own set of benefits. Typically, this type of brokerage will come with name recognition, such as Keller Williams or RE/MAX. Franchise brokers tend to provide more resources for marketing support and training, but that will come at the cost of keeping less of your commission.
While the additional resources may be a good fit for some agents, franchise brokers don’t always allow you to work as independently. Newly licensed agents looking for a higher level of support and training may prefer a franchise brokerage over an independent brokerage. However, after going through “new agent training” and gaining experience in the field, agents often switch to independent real estate brokerages to earn higher commissions.
The Commission Split
Of course, when it comes to how to choose a real estate broker, the commission split matters. Many new agents fall into the trap of making the commission split the main focus of their decision, which leads many to change brokers after the first year or two as an agent.
The commission split is important, but it shouldn’t be the main factor in your broker decision. You will find commission splits vary greatly and some brokers say they allow you to keep 100% of your commissions. However, they will collect in other ways including:
- Transaction fees
- E&O Premiums
- Desk Fees
- Technology Fees
- Sign-up Fees
- And more!
Brokers offering a commission split are often known as traditional brokers. They will likely offer to pay the agent about half or a little more of the commission while using the rest to cover overhead expenses. Sometimes they’ll entice agents by offering 100% commission only after they’ve earned a certain amount which is referred to as a commission cap.
At Elite Agents, we are different from the typical 100% commission broker and the traditional broker. Instead of collecting transaction fees, E&O premiums, and other fees, we simply charge a monthly cost. Our fees are transparent and make it easy for real estate agents to understand what they are getting and how much it will cost each month. Find out more about our real estate agent sponsorship here.
Niche and Reputation Matter
Another part of the process of choosing a real estate broker is understanding their niche and reputation. Some brokers work specifically in certain types of communities, while others work with a specific type of home. For example, luxury real estate brokers will likely avoid any listings under the $1 million price point.
Understanding the niche you fit into will help with how to choose a real estate broker. Whether you prefer to work with historic homes, luxury listings, or first-time home buyers, you’ll want a brokerage matching with your niche.
In addition to the niche, you should seek out a brokerage with a great reputation within that niche. They should have a strong market presence and a reputation for excellence within the community. The last thing you need is to become associated with a real estate broker with a less than stellar reputation.
Generating Leads and Gaining Referrals
Even after just a year or two of real estate experience, you probably already know it’s up to you to generate your own leads and referrals. However, most real estate brokers have websites and receive inquiries they can pass on to their agents.
It’s important to understand how these leads and referrals are handed out. Some brokers will give the majority of their leads to highly experienced agents to ensure they have the best chance of closing. However, other brokers hand out leads to newer agents and veteran agents in a more fairly distributed way.
Make sure you understand how the system works for handing out leads and referrals. Additionally, even though a broker advertises that they will provide leads, these online leads usually have an extremely low rate of converting into actual clients. Instead of promising a bunch of worthless leads, Elite Agents provides our agents with lead generating and capturing tools so leads go to them directly.
Up-To-Date Technology
Learning how to choose a real estate broker isn’t easy, but one thing that separates the good from the not so good is technology. We live in a world that’s moving at an incredible pace. Brokers have to stay up-to-date on technology or they will fall behind.
As an agent, you want to know how to choose a real estate brokerage to work for and technology plays a factor in the decision. Choosing a broker with proven technology for real estate lead generation, your own website, transaction management, and even training will make a difference. If they don’t provide you with great technology, you may want to keep looking.
Elite Agents was founded by veterans in the real estate and technology industries so we always keep an eye on the latest technical trends in real estate and keep our agents informed on what’s happening.
Learning how to choose a real estate broker isn’t easy, but one thing that separates the good from the not so good is technology. We live in a world that’s moving at an incredible pace. Brokers have to stay up-to-date on technology or they will fall behind.
As an agent, you want to know how to choose a real estate brokerage to work for and technology plays a factor in the decision. Choosing a broker with proven technology for real estate lead generation, your own website, transaction management, and even training will make a difference. If they don’t provide you with great technology, you may want to keep looking.
Elite Agents was founded by veterans in the real estate and technology industries so we always keep an eye on the latest technical trends in real estate and keep our agents informed on what’s happening.
Solid Marketing Plan
Some real estate brokers are stuck in the past and rely on old methods of marketing for their agents. If you want to know how to choose a real estate broker for your long-term success, you’ll want to make sure they’re using fresh marketing designs and strategies. First of all, check out their website and social media presence.
Marketing is so vital to selling homes and finding buyers, that you simply cannot skip this step in the process. Make sure the real estate broker you choose offers the right marketing strategies including plenty of online options, such as:
- A personalized real estate website
- Custom landing pages for lead generation
- Proven online ads and social media posts you can use
- Virtual tours for listings
- And More!
The best real estate brokers will give you all the resources you need for online marketing since a large percentage of buyers search online before even thinking about looking at a home in person.
Regardless of sponsorship plan, all of our agents receive social media automation with listing virtual tours as well as access to modern marketing material. Agents on our Premium plan have their own website (not a page on our website), individual property websites for each of their listings, landing/squeeze pages, and more!
How to Choose a Real Estate Broker: A Few Questions to Ask
Along with the factors above, when you’re trying to narrow the list of real estate broker to the right one for you, consider asking the following questions:
- What type of agent is the brokerage looking for?
- Does the broker have specific goals for their agents?
- Are you going to be working as an employee or an independent contractor?
- Is the broker a member of the Multiple Listing Service (MLS)?
- Will the broker be responsive when you need help or will you have to wait a couple of days before they call you back?
- How many other agents are working for the broker?
With the right questions, you can easily narrow your list of brokers down to the right one for you.
It’s not always easy to find the right brokerage for your skills. Maybe the first broker you chose wasn’t a great fit and you know what you prefer now. Use this guide to help you with how to choose a real estate broker and really consider what you want out of your real estate career.
There isn’t a right or wrong choice when it comes to choosing a real estate brokerage to work for. The only wrong choice would be a broker that doesn’t fit with the way you prefer to work.
