Choosing the Right Brokerage to Launch Your Real Estate Career
Working at a brokerage is a great way to break into the real estate market as a new agent. But, how do you choose the right one for you? Here’s how to compare brokerages before taking a job.
Look for brokers in good markets
You will have higher success if you select a broker with a strong listing portfolio filled with high-quality inventory in a steady market. While the real estate market is nuanced and ever-evolving, a successful brokerage will navigate this by having a robust referral network, portfolio diversification and savvy management. You will have a much better chance at success in this industry if you look for a brokerage with these key traits.
Weigh big versus boutique
If you’re just beginning your brokerage search, you will need to decide whether you want to work for a large national chain or a smaller boutique brokerage that works exclusively in your local market. At a larger firm, you will likely receive less personalized mentoring while you are much more likely to get helpful, personalized attention at a boutique brokerage. That said, with a big firm, you will have access to an expansive network and greater marketing opportunities, which could lead to a higher rate of sales.
Look for updated technology
Is the brokerage willing to equip you with the programs and devices you need to succeed in the modern real estate landscape? If the company doesn’t provide efficient, optimized workspace, transaction document-management software or IT support, you might want to look for opportunities elsewhere.
Inquire about training and support
Many independent and franchise real estate brokers provide some type of formal or informal training. When selecting a brokerage to launch your career, weigh long-term development against other forms of support, such as access to advertising platforms and marketing resources. A mentor may mean a great deal if you’re new to the industry. If you are focused on gaining leads fast, you may want a broker that invests heavily in marketing opportunities.
Look beyond the split
To remain financially viable during your first years as an agent, you will need to plan around your broker’s rate. Commission rates can vary widely depending on the brokerage firm, with some charging a 50% rate and others simply asking for flat fees at closing. It’s common for new agents to go with brokers with the cheapest split, so they can keep more of what they make. That said, it’s important to remember that 100% of nothing is still nothing.
There is always more to a brokerage than just the split. Many brokerages demand larger splits because they know they can give you steady clients. If a broker offers generous splits, it’s usually a sign that they expect you to do all of the work without much — if any — real support.
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