Learn How to Choose the Best Brokerage for New Agents in Real Estate
Most new real estate agents need help in choosing the best brokerage for new agents. I often see their posts on social media, asking for opinions regarding Broker A vs. Broker B.
While it may be good to get other agents' opinions, I think new real estate agents need to understand that there is no such thing as the "perfect brokerage." What you should focus on is signing up with the perfect brokerage for you. Here's what I mean...Base Your Decision on YOUR Criteria
There are various things to consider when choosing a brokerage:
All real estate agents are unique individuals. What's important to Joe may not be important to Jane. What Shelly needs in a brokerage may be different than what Mark needs in a brokerage. So the first step in choosing the best brokerage as a new agent is for you to identify your criteria...the things that are most important to you.
Once you identify your criteria, then you need a list of Questions to Ask Brokers that will help you to interview brokerages and determine how well each rates regarding your criteria. Then you can give each brokerage a score to see how they compare to one another, based on your specific needs.
There are different types of brokerages and each has its own PROs and CONs. Review the following types of brokers and think about which type may be the best fit for you.
Also read the article comparing brokers at https://fitsmallbusiness.com/best-real-estate-company-to-work-for. This article is fairly in-depth and up-to-date on describing many of the top national brokerages.
Most real estate agents are independent contractors who work under the supervision of a brokerage, but not as an employee. This means that the brokerage is not hiring you. You are choosing the brokerage for which you want to work. So you will need to call around and set up appointments with various brokerages in your area, interview the brokerages, and then rate each brokerage on the Broker Decision Analysis worksheet to choose the best brokerage for you.
So make a list of the top-five local brokerages that you are interested in and their phone numbers. Then call each office and ask to speak to the person in charge of recruiting new agents. Then set up an appointment to meet with that person and learn about that office.
Tips for Choosing the Top Five Brokerages to Interview
You can interview as many brokers as you want, but don’t make this process overly complicated; you only need one brokerage. If you change your mind later, you can always switch brokers.
I have designed a "Broker Decision Analysis" which is an evaluation tool that you can use to compare multiple brokerages, rate them based on your criteria, and give them scores to see how they rate for you. This is a very effective way to evaluate brokerages and choose the one that will be the best brokerage at which to work. It takes the guesswork out of the process and helps you to objectively judge which brokerage will meet your specific criteria.
We usually refer to our "brokerage" as our "broker" in the real estate industry.
My Broker Decision Analysis the best method for choosing the best broker for you. It includes a list of the most important criteria...so you don't have to figure it all out yourself. It also provides a list of Questions to Ask Brokers which you can use on your broker interviews. (If you don't ask the right questions, then you can't evaluate the brokerages effectively.) They are both located in the JumpStart for New Real Estate Agents book.
Don't forget to ask each brokerage about their compensation plans and mandatory fees! The way a brokerage pays your commissions will greatly effect your income goals and activities. Make sure you have a clear understanding of the different compensations plans before choosing a brokerage.
Chapter 1 of the JumpStart for New Real Estate Agents workbook provides detailed worksheets and explanations so you can understand how various compensation plans effect your income goals. What you will see is that to earn a certain amount of income each year, you may have to sell 24 houses with Commission Plan A, but only 17 houses with a Commission Plan B. Obviously this should seriously impact your choice in brokerage!
Most new real estate agents worry too much about choosing a brokerage. Keep in mind that this is not a permanent decision. You can change brokers whenever you want…you just have to make sure that your state’s real estate licensing board knows when you change brokers, by filing the right paperwork (which the new broker usually does for you). It’s not that difficult.
However, this is why you should never tie your business phone number, email address, website, or any lead generating activities to one specific brokerage. In the JumpStart for New Real Estate Agents workbook, you will learn how to keep these items independent from your broker so you are not “tied” them. This gives you flexibility as a real estate agent.
Helpful resources for real estate agents:
You've got questions. Here are the answers. Learn the ESSENTIAL FUNDAMENTALS for real estate agents. This is the COMPLETE STARTER BOOK for new agents.
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