Whether you are just getting your license and going into the real estate business or you have been in the business and want to switch brokerages to better your career, it is important to educate yourself on how brokerages are different. There are big differences among companies in structure, operation and philosophy. Your goal is to find a brokerage that will ultimately be the right fit for you. After all, it's your business and your success is up to you. Here is a look into a few key factors that you should take into account when determining if you will succeed with a brokerage.
Brokerage Cost Structures
Although there are several real estate cost structures, two of the most common are flat fee and commission based models.
Flat Fee- As the name implies, you pay your broker a flat amount every month for a package of services. It’s a fixed number, but often the fees for anything extra are costly and can come as a surprise expense. The lower the fee, the less the broker provides to their agents.
Commission Split- The percentage split is an amount agreed to by the broker and the agent and usually reflects the amount of services and support the broker provides. For example, a 50-50 split. For any commission you bring in as an agent, 50% goes into your pocket and 50% goes into your broker’s pocket. Each brokerage has a unique model. Some splits can also be reflective of the volume of business the agent brings in and some also require additional monthly fees.
Many real estate agents think a broker choice is primarily based on commission splits. Just remember, if a broker has the lowest fees but they don’t help you make money, you are paying for nothing. The split is important but should be balanced with the many services and leads provided by the broker. These benefits might be what you need to get your start or improve your business.
Brokerage Education Services
Getting your real estate license actually teaches you very little of what you need to know to be successful in the industry. That is why almost all brokerages offer training, but not all of them offer good training. Quality job training is probably one of the most important aspects of starting out in the real estate business. It's crucial to have the skills to succeed. You will need skills to get business, to negotiate for your clients, to structure an offer and to properly guide a transaction. In additional to educational services, a newer agent should look at the mentoring services provided. The real estate industry is extremely competitive and you will need experienced agents that have your best interests in mind when you call on them for advice.
How The Broker Does Business
No two brokers are alike. They all have their own structures and policies. When choosing a broker you should plan on meeting with at least three before making a decision. You should be interviewing the brokerage to see if it’s a good fit for you. This process is where you’ll start discussing commission splits, lead generation options and training support. Brokers will be selling themselves and their business to you.
What’s In The Name?
You want to be weary of brokerages that spend a lot of money advertising their brand. In real estate, a buyer or seller does not choose an agent because of a brand, but rather they choose one based on the ability to provide great service. Just because you know the name doesn’t mean they can offer you what you need to succeed. Knowing what a brokerage can offer you to help you grow your business will benefit you more than a big brand name.
Culture is an intangible quality of a workplace that employees and managers can identify when present. As a real estate agent, it is important to consider the culture of the brokerage that will hold your license. A positive culture is one of the biggest keys to long-term success. Brokerages that encourage relationships, has quality values and provides recourses and activities can really foster a team environment geared toward your success. Small perks like these can make a big difference in where you will feel comfortable and thrive.
COListings is a brokerage firm that works for you and it stands apart from the rest. This team based service program focuses on developing their agents. It is designed to help agents better serve their clients, grow their business and achieve a better balance in life. Their philosophy as a brokerage firm is to help their agents become successful. COListings is ready to meet with you. Empower yourself and take charge of your future as a successful real estate agent. Contact COListings today!