Once you’ve obtained your real estate license, you may decide to work for a real estate broker—most agents do. The challenging part is choosing the right real estate broker for you and understanding what to look for when making this important decision! First and foremost, you’ll want to understand the commission split of the brokerages that you’re considering. Second, consider the culture of the brokerages that you’re considering and if they align with what you’re looking for. Lastly, take some time to research the reputation of the brokerages you’re interested in—because their reputation will become a part of your reputation!
How is the Commission Split?
As an agent, you should already know that the commission of any home that you work to buy or sell is going to be where you earn your money and make your living in real estate. As such, you should take a moment to investigate how commission is handled at any brokerage that you’re considering being a part of. Commission splits can differ from brokerage to brokerage, and there are numerous factors that can affect how the brokerage is willing to split your commission. As such, you should take some time to research to market and surrounding brokerages to get a better understanding of what a fair commission split is in that area. Once you’ve determined what that fair commission is, you should then begin asking the question of how you can increase your commission split over time. Often times this increase comes with increased experience and greater sales numbers, but it’s always a sound strategy to ensure that there’s some upward mobility in the brokerage that you’re interested in!
Also, it’s important to quickly note that there are some brokerages that offer salaried positions and even salary-commission hybrids, so keep this mind when making your decision!
Know the Culture
When you’re considering what brokerage you want to work for, it’s important to understand the culture of the brokerages that you have in mind! This can include numerous things, such as: the relationship/communication between agents, the size of the brokerage, what areas the brokerage’s agents typically operate in, etc. All of this is important because it will amount to your surrounding work environment, and you’ll want to ensure that that’s an environment that you enjoy! It also doesn’t hurt to ask other agents what they think of the brokerage in question, as they may have some experience working with agents from said brokerage!
What’s its Reputation?
As with any new job, you want to make sure that you understand the reputation of the company that you’re working for! The same applies to real estate, as you want to ensure that you know what the brokerage that you’re considering is known for! For example, are they a large company that turns out good sales numbers but doesn’t always connect well with their clients? Or, are they a smaller brokerage that appeals to a more personal connection, but has lower sales numbers? This ties into the earlier point about your work environment, and it’s equally important because the reputation of the brokerage that you work for will become tied into your reputation! Ultimately, it’s up to you to decide what kind of environment and company you want to be associated with, but it’s important to understand what you’re looking for before you begin your search!