How to Choose a Real Estate Broker: 5 Factors to Consider
If you recently got your real estate license, you’re likely wondering how to choose a real estate broker. Choosing a broker to work for is a difficult decision because the choice you make will have a huge impact on your success. You don’t want to start off on the wrong foot because it can hurt your long-term results as well.
Instead of shopping around and blindly trying to learn how to pick a real estate broker, check out my five top tips for choosing the right broker for you.
1. The Commission Split
The first thing all agents think about is the commission split. While this is an important factor, it’s not the “end-all-be-all” either. Real estate agents get paid commission, so if you’re not out there selling, you’re not making any money. A portion of the commission goes to the broker, but each brokerage offers a different structure.
Here’s an example. Let’s say you sell a $300,000 home, and the commission is 6%. You’ll have to split that 6% between you and the buyer's agent. That leaves 3% for you.
Next, you have to split that 3% between yourself and the broker. If you’re on a 60/40 split, that means you’ll get $5,400 commission for the sale before expenses and taxes. Not bad, right?
At Christian Saunders Real Estate, we offer an 80/20 split, and once you pay $20,000 to the company for the calendar year, you keep 100% of your commissions for the rest of the year. There aren’t too many other agencies out there offering this.
So, that same $300,000 home you sold would now be worth $7,200 instead of $5,400. That’s one of the bonuses of working for a smaller family-run brokerage instead of a big corporation.
2. Look at their Culture/Reputation
When asking “how to choose a real estate broker,”? One of the most important things you want to look at is the company culture and reputation. It doesn’t matter how great of an agent you are if the company's reputation stinks. You need to look for a brokerage with a lot of positive reviews from both agents and clients.
The agency should also have strong retention. Take a look at agents who are currently working with that brokerage and find out how long they’ve been there. Chances are, the best real estate agency in the area is the one that retains agents, trains them, grows with them, and helps foster their success.
Picking a broker to work for in real estate is a lot like picking a college or university. You need someone who will support you, guide you, and offer the tools you need to succeed. But they also need to get out of the way and let you do what you know how to do best.
3. Independent Brokerage or Franchise? Which is Better?
When learning how to choose a broker as a real estate agent, you need to weigh the options. Do you want to work for a big name like REMAX or Keller Williams? These brokerages have offices all over the country, and people recognize their names everywhere.
The downsides of working with a big agency are they often have more control over what you do, they offer tougher commission splits, and they don’t provide the same level of personal training as smaller agencies. You won’t get one-on-one time with a big agency, and chances are, you’ll spend a lot of your time following up on rules and guidelines of the company code.
Independent brokerages offer more freedom for you to run your business the way you want to, and these agencies usually have more full-time agents, which means you’re working as a bigger part of an overall team. These types of agencies also offer more one-on-one support, and they typically give back to their community as well.
Many people enter the real estate business to get away from the corporate world or to work from home as a real estate agent. Working for a large agency might not offer that same feeling. That’s why I recommend going with a small independent agency like Christian Saunders Real Estate.
4. Do They Have a Niche?
Every agency has a niche. Some are known for providing great marketing tools; some offer exceptional training, others offer a higher split, but regardless of what it is, you need to understand it and know-how that impacts your ability to succeed as an agent. What do you want to be known for? Because the agency's reputation quickly becomes your reputation when you sign on with them.
Learning how to choose a real estate broker is a lot like picking your team when you were playing basketball at recess in school. You need to choose a brokerage that will support you the best and play off of your strengths.
To do this, you need a broker with a strong reputation in the community, a team of already succeeding agents, and a winning attitude built on training and support.
5. What Does the Broker Provide? Marketing, Leads, Etc
Last but not least, what does the broker offer you? The focus tends to lean on what you can offer to the agency, but in reality, you’re interviewing the broker - it’s not the other way around. Some brokerages offer hands-on training and mentoring, while others offer marketing collateral.
Some brokerages offer nothing other than a coat hanger and a monthly sales meeting. You need to figure out what you want and what you need to succeed. Whether you’re a new agent or a seasoned veteran, it’s never too late to change agencies.
Knowing how to choose a real estate broker is the difference between hitting the ground running and kicking tires for a few years until you figure out what you want to do. Don’t be a tire kicker!
If, after reading this, you think that Christian Saunders Real Estate might be the right choice for you, you can call me directly at 570.335.9000. I’m always open and interested in talking to new and seasoned agents who might be considering a change. We offer exceptional support, a great pay structure, and a team of winners built around a reputation of winning.
Give me a call at 570.335.9000 or check out our Careers Page to learn more!