5 Tips for Choosing the Right Real Estate Brokerage

Finding a good brokerage can make or break your career in real estate, which is why we recommend you find a company that can provide the platform you need to reach clients and help them list and sell their property. If your current broker doesn’t fit your needs, consider changing employers to scale up.

Remember, you’re not looking to spend 20 years with a broker – you just need one that has the right tools for the current market.

Here are five tips to help you land a good broker:

1. Ask about the commission split

The market standard is 6 percent for the real estate agent, which they have to split with their broker; but of course there are many variations in the payment packages available in the market, and you can always find a way to leverage your own experience, so that you get a fair commission split. Now, a broker probably has more resources than an individual real estate agent, and if they want a bigger chunk of your commission, they should also be willing to offer more resources to help you get more properties to sell.

People find that their home sells faster if they work with a renowned broker, so its not too difficult to find new clients if you’re willing to use their resources, market share, and reputation to reach people who want to sell. So, the market share is essential when working for a broker, but equally important is a fair commission split. Some companies are offering a salary or hybrid model, so have a look around if this type of compensation sounds good to you.

2. Evaluate the brokerage culture

Ask yourself what type of broker you want to work for. What kind of work culture do they have, and are you comfortable with there? Here are a number of things to look out for:

• Is it a comfortable, enabling work environment?
• Do you get additional training from them?
• What kind of support do they offer for their employees?
• What kinds of tools and resources do they have?
• Can you experience growth and gain valuable experience while working for them?
• Do the employees work as a cohesive unit? Or are they competitive?
• Is there tension between different segments of the company?

Find out more about the broker by chatting with agents who work there or used to work there and determine for yourself whether it’s a good fit.

3. Decide between an establishment or autonomous business

A large, well established broker might seem like the obvious choice but there are no guarantees that you will find a long list of clients by working there. Big firms tend to have more control over their agents than, say, family-owned brokerages. Perhaps what’s needed here is an analysis of the pros and cons, for small brokers and large ones. Here’s a quick glance at the main differences:

• Large firms potentially have access to many clients.
• Small firms are local based but may offer higher commission.
• Smaller independent firms offer more personalized guidance and support for new agents.
• Larger firms have highly trained teams with lot of experience.
• Franchises exert more influence over their employees.
• Smaller companies give you more freedom to operate.

4. Learn its notoriety and specialty

When doing research on the company, check their online presence, and conduct a check on their web presence for specific search queries. For instance, try a search on “houses for sale” in your particular area, and see whether their company shows up, or if other competitors have more presence in that regard. This will indicate whether they can help you find leads.

You can also do a Google search to find reviews and other information that may be available. Generally speaking, you want to avoid brokers that have racked up a string of bad reviews, and ones that don’t specialize in your particular niche. Having the right broker can double or even triple your income, so make sure that you get a combination of niche, culture, and lifestyle, to help you settle in quickly.

5. Make sure it will offer help

Some companies get deeply involved when it comes to mentoring, offering tools, and training. But there is also the type of brokerage that is just a place for you to hang out while you build you own business. They might offer you a sales training course every once in a while, but other than that, you don’t have any incentive to work there in the long term.

In the end, you will benefit a lot from having access to training and mentoring, especially in your first year as an agent, but where you go from there is completely up to you. Whomever you pick, make sure they help you grow and evolve, by offering support and the material you need to become a success.