After completing your pre-licensing courses, passing the TREC real estate exam, and earning your Texas real estate license, the next crucial step is selecting a brokerage. In your first year as a real estate agent, your broker will be a vital guide, addressing your questions and concerns, and crucially, helping you establish your name as a new agent.
Here are key considerations when evaluating brokerages in Texas:
What to Consider When Choosing a Texas Brokerage
- Franchise vs. Independent Brokerage
- Franchise Brokerages (e.g., Keller Williams, RE/MAX, Coldwell Banker): These are national or international brands with a more corporate structure. They often offer:
- Extensive marketing materials and brand recognition.
- Structured, high-quality training programs, which can be invaluable for new agents.
- A more controlled work environment with established operating procedures.
- Example: Keller Williams, headquartered in Austin, TX, is known for its focus on agent training and technology, aiming to equip agents with tools and the ability to offer comprehensive customer service. Their commission model often includes a “cap” on what agents pay to the market center, after which agents can keep 100% of their commission until their anniversary year.
- Independent Brokerages: These are typically smaller, locally focused firms that often offer:
- More independence and flexibility in how agents run their businesses.
- Smaller teams and a more casual, close-knit environment.
- They might be more selective about who they bring on, prioritizing individual agent success due to fewer resources for mass recruitment.
- Often cater to specific local markets or niches.
Your choice depends on your personal preferences for work environment, desired level of independence, and need for structured training and brand recognition.
- Franchise Brokerages (e.g., Keller Williams, RE/MAX, Coldwell Banker): These are national or international brands with a more corporate structure. They often offer:
- The Brokerage’s Reputation
- For Franchises: Research their overall name recognition and how they are perceived in the industry and by their agents nationwide. Do they have a reputation for supporting new agents?
- For Independent Brokerages: Investigate their standing within the local community. How well-known are they, and what is their market share in the areas they operate? Look for reviews, testimonials, and feedback from current and past agents. A strong reputation enhances your own credibility and can attract clients.
- The Broker/Agent Commission Split
- This determines the percentage of commission you retain from each sale. Commission structures vary significantly among brokerages in Texas.
- Common Splits: For new agents in Texas, a common starting split can be around 50%-60% to the agent, with the rest going to the brokerage. As you gain experience and increase your sales volume, this split can improve (e.g., to 65%-75% or even 80%-90%+ for top producers).
- 100% Commission Models: Some brokerages advertise 100% commission splits. However, this usually means they charge higher monthly fees, transaction fees, and other administrative costs (e.g., E&O insurance premiums, desk fees). These models can be appealing to high-volume, experienced agents but might offer less support for new agents.
- Negotiability: While commission rates are generally negotiable in Texas between the agent and the client, the split between an agent and their sponsoring broker is also negotiable. However, new agents typically have less leverage to negotiate initially.
- Understanding the Full Picture: Don’t just look at the percentage. Understand all fees involved and what resources and support are included with a particular split. A lower split with comprehensive support and training can often lead to greater overall earnings and faster growth for a new agent than a high split with no assistance. Ensure you fully understand the financial structure to avoid unexpected binds.
- The Amount of Support Offered by the Brokerage
- Brokerages differ greatly in the mentoring, training, and marketing support they provide. Some are very hands-on, offering structured programs, while others adopt a more “fly free” approach.
- Hands-on Support: If you need significant guidance in developing your skills as a new agent, look for brokerages that offer robust mentorship programs, regular training sessions (classroom-style or one-on-one), and readily accessible broker or manager support for questions and challenges.
- Marketing & Technology: Inquire about the marketing materials, technology platforms (CRMs, lead generation tools, professional agent websites), and branding assistance they offer. For new agents, having brokerage-provided tools to get your name out there is paramount.
- Lead Generation: While agents are generally responsible for generating their own leads, ask if the brokerage provides any leads, how they are distributed, and if there are opportunities for “floor time” (working the front desk for walk-in clients).
- Administrative Support: Consider if the brokerage offers administrative help with paperwork, MLS listings, and transaction processing, which can be a significant burden for new agents.
Final Steps
The best approach is to identify a handful of Texas brokerages that interest you and then schedule interviews with them. This allows you to get a feel for their culture, support systems, and overall approach to supporting their agents. This is a significant career decision, so thorough research and direct conversations are crucial for making an informed choice that sets you up for success in your Texas real estate career.