You’ve passed your real estate salesperson’s test—congratulations! Now, the crucial next step is to find a broker to “hang your license” with. Real estate is fundamentally a business of relationships, but perhaps none is more vital than the one you cultivate with your broker. While your success ultimately rests on your shoulders, a supportive broker can be an invaluable ally in your journey.
It’s essential to interview with many different brokerages. Unlike a traditional job interview where the employer assesses you, you should be interviewing the brokerage to determine if they are the right fit for you. If you haven’t taken your exam yet, don’t wait to schedule interviews; many brokerages are eager to speak with potential new agents.
As you embark on this search, consider these 15 critical items to guide your decision:
15 Items to Consider When Choosing a Real Estate Broker
- Commission Split: While tempting, don’t let this be your sole deciding factor, especially as a new agent. A “100% split” often means higher fees elsewhere (transaction fees, E&O premiums, desk fees, and likely minimal support). A traditional model might offer a lower split but covers more overhead and provides crucial initial assistance. Remember, a 100% split of nothing is still nothing. Your negotiation leverage will increase as you gain experience and sales.
- Internet Presence: In today’s digital world, a broker’s online presence is paramount. Their website should be professional, attractive, and actively maintained on social media, with positive online reviews. A major red flag is a broker who can’t present their agents professionally online. Crucially, your personal brand is key: build your own website independent of the brokerage’s, as you will likely move brokerages in your career. Your goal is to promote your brand, not solely your broker’s.
- Fees: Beyond commission splits, understand all associated fees. This includes desk fees, charges for printing and copies, transaction fees, and insurance premiums (E&O). Compile a bottom-line monthly cost. Ask specific questions about which fees are standard across all brokerages and which are unique to their company. This clarity will help in both broker selection and career financial planning.
- Brokerage Size: Remember, people define the brokerage, not just its size. However, general differences exist:
- Large Brokerages: Offer exposure to experienced agents, often provide structured training classes, and give you valuable name recognition to leverage initially. National brands may also generate leads from their name alone, which could be distributed to agents.
- Cons: Can feel impersonal (“cookie-cutter” approach), leads might lead to intense internal competition, and there’s less flexibility for unconventional ideas. They prioritize volume over individual agent success.
- Boutique Brokerages (Smaller, Local): Often more selective in recruitment, focusing on individual agent success rather than numbers. You’ll typically work directly with the broker and experienced agents, leading to fewer but potentially higher-conversion leads due to less internal competition. More flexibility for creative business ideas.
- Cons: May lack formal “classroom” training, and you won’t have the immediate brand recognition of a national name.
- Large Brokerages: Offer exposure to experienced agents, often provide structured training classes, and give you valuable name recognition to leverage initially. National brands may also generate leads from their name alone, which could be distributed to agents.
- Facilities: Evaluate the physical office space. Would you be proud to bring clients there? Assess cleanliness, professionalism, and practical amenities like adequate workspace, access to computers, copiers, fax machines, after-hours access, and parking for both agents and clients.
- Location: Consider your intended use of the office. While technology offers mobility, you’ll still need to visit for meetings, paperwork, supplies, mail, and networking. Evaluate commute times and convenience for your daily activities.
- Training: Look beyond motivational speeches. You need practical instruction on evaluating properties, listing, and completing contracts. Inquire about the trainers’ backgrounds and the structure of their training programs. Ongoing training is vital due to the rapid changes in real estate technology and client demands. Ask to sit in on training sessions; a good broker will welcome this. If no in-office training exists, understand their alternative plan, as outsourcing training can also be effective.
- Mentor Program: Most new agents benefit from one-on-one guidance for their first few transactions. Understand the cost (per-transaction or percentage of commission) and expectations of the mentoring relationship. Crucially, ask to meet your potential mentor. Assess their availability, compensation, their plan for your success, and whether your personalities align. A good mentor should be nurturing, not just financially driven.
- Management Support: Assess if the leadership has sufficient time to support new agents. In larger firms, you’ll likely deal with a salaried manager; in smaller ones, it might be the broker/owner. Ask if the manager or broker also sells real estate, as their personal production could impact their availability or even create conflicts. Inquire about the number of full-time and part-time agents they supervise (more than 50 full-time agents per manager is a heavy load). The best way to gauge accessibility is to ask current agents.
- Administrative Support: Paperwork can be overwhelming. Some offices offer full-time staff for MLS uploads and transaction processing, while others charge a fee for such services, or leave it entirely to the agent. If paperwork is a concern, this is a critical question to ask.
- Culture: The office culture impacts job satisfaction. Some prefer independence; others thrive in a community. An office with many new agents can be energetic but chaotic. Seasoned veteran offices might be stable but isolating. A mix can offer the best of both. Trust your intuition; a positive and supportive environment where you enjoy your colleagues can significantly contribute to your enjoyment and long-term success in real estate.
- Specialties: Determine if the brokerage specializes or allows work in various real estate niches (residential, commercial, leasing, property management, etc.). Ask if your desired specialties align with their offerings and policies.
- Broker’s Reputation: Talk to other real estate agents, mortgage lenders, appraisers, home inspectors, and attorneys in the area to gather insights into various brokers’ reputations. Don’t just ask if they like a broker; understand why. Also, research agent retention rates; long-tenured agents often indicate fair treatment.
- Referrals and Leads: While you’re responsible for generating your own business, many brokerages receive inquiries (website, calls, walk-ins). Understand their system for distributing these leads. Are they given to proven veterans or new, eager agents? Inquire about “floor time” opportunities, where you work the front desk hoping for walk-in clients, and how these are assigned. Understand that leads provided by the brokerage often come with an associated cost (e.g., lower commission split).
- Joining a Team: Many new agents consider joining a “team” under a successful agent (in either national or boutique brokerages). This usually means a lower commission split in exchange for access to the team leader’s business and invaluable hands-on experience. Deals might be credited to the team leader for marketing purposes. While a great way to start earning sooner, be mindful of building your personal name recognition during this period. Ask potential brokers about their team structures and policies, as some offices are more team-friendly than others.
In conclusion, schedule meetings with several brokers to assess the fit. If a brokerage isn’t what you’re looking for, don’t hesitate to ask them for suggestions on other offices. Don’t overstress this decision; remember you can always change brokerages later. Use these tips to find the best initial fit for your real estate career. Good luck!