New agents face a lot of challenges when beginning their new careers. One of the first hurdles is deciding on an office or brokerage. This decision shouldn’t be made quickly. Choosing a broker that will support your efforts, and supply you with the right resources, is key to your success as an agent. It is not easy to change your broker once you sign on. So, take your time and make sure you hang your license in the right place.
Management Team
It is important to speak with the broker and other agents in an office. You should also speak to the people who manage the space you will potentially be working in. A lot of the time, these employees do not have real estate licenses, but they are the glue that holds an office together. Real estate agents rely on staff to field leads, process paperwork, schedule conference room space and any other administrative tasks. If the broker has a savvy, organized management team, your life as an agent will be much easier. Paul Daneshrad, an expert in commercial real estate, talks about how important this is when he outlines the five qualities to look for when building a team.
Commission Split
Most agents will prioritize the commission split when interviewing different brokerages. Keep in mind that commission splits are not set in stone. Most brokers will adjust their percentage as agents become more experienced and accumulate more sales. This point should be discussed when negotiating the split. You may want to go with a broker that has a slightly higher commission split if you really like everything else about the office.
Some brokerages offer a flat monthly fee in place of a commission split. This is advantageous when you are making lots of deals but is tough for a new agent. If you are confident that you will be making sales immediately, a monthly fee may be a good idea. Other brokerages now offer a hybrid model. These offer a combination of a la cart fees and commission splits.
Support
Some brokerages are more hands-on than others. Support is essential for new agents who have lots of questions and are learning about a new area. Having an experienced insider to share the tricks of the trade is invaluable, so look for a place that has a mentorship program. Training programs may also be available to new agents. A broker that supports their agents, through educational opportunities and other services, will give you the greatest path towards success.
