A strong support network is essential to being successful in real estate. The right real estate brokerage will help mentor new agents, provide support for marketing and lead generation, and offer access to tools and a network that will help you find new clients.While many agents make a decision primarily on the commission split offered by a brokerage, there are several factors to consider that will make a difference in your income and over the course of your real estate career.
Mentorship and training
Many brokerages offer training classes for new agents. Studying for your real estate license doesn’t necessarily teach you to sell real estate for a living. Good training and coaching is essential for new real estate agents in particular.Ask a potential brokerage about their training programs, or ask if you can sit in on one of their classes so you can get a feel for what they offer. One that isn’t forthcoming about their programs may not be the best fit.
Commission and fees
Some brokerages may claim to offer 100% commission, which sounds like the best way to maximize your money as an agent – but remember that no broker works for free. Many “100% Commission” shops will charge transaction fees, desk fees, and other nickel-and-diming expenses that will add up. Even commission-based brokerages charge for errors and omissions insurance, as well.Remember that regardless of the commission split, you will only make money if you are successfully closing deals. So keep in mind the other ways that a brokerage is supporting your career and helping you be profitable.
Marketing and lead generation
Real estate brokerages often have advantages when it comes to marketing and advertising. Often, they will help you build a website and establish an online presence, or offer advertising opportunities that you wouldn’t otherwise be able to afford.Brand recognition for the brokerage itself is something to consider, as well. The big national brokerage houses are often more recognizable and well-known than boutique firms, but distribute leads among more agents than smaller ones. Ask a potential brokerage how they distribute leads and what marketing tools they have available.Whether you’re a new agent looking to start your real estate career, or an established agent looking for a change of scenery, be sure to consider the advantages and disadvantages of any brokerage before you commit to partnering with them.