Choosing a Broker

The business of real estate sales is a high stakes, make or break opportunity and only the persistent and resilient survive.  At the start there’s an enormous amount of learning that must take place at a rapid pace.  A new agent must rely on their chosen broker to provide the training and support necessary to effectively launch their new career within weeks or serious doubt can creep in and sabotage an otherwise productive career.  Herein, lies challenge number one, choosing a broker.  

Agents typically interview with one, two, or three brokers but rarely know what to ask or how to compare companies in terms of their own career goals.  Most agent interviews are more of a sales pitch, sometimes accompanied by a detailed presentation. A new, unsuspecting agent will often be flattered that the interviewer wants to “hire” them, not realizing that the manager's primary objective is to hire many agents.  Chances are excellent that almost every manager or team leader they meet with will offer them a position.

So, how do you choose the right broker, for you?  Should you go with a big company or a small one?  Should you join a team or work independently? What questions should you ask during the interview?  What criteria should you use in making your final decision?  

Know Thyself

Before you can begin to make a decision, it’s important to do a little soul searching and be clear about your work behaviors and your specific goals for the future. 

Do you enjoy being a member of a team or are you motivated by singular achievement?  There are many advantages to starting out with a team but if your nature is entrepreneurial you may quickly grow frustrated.  

When you join a team, you learn how that group runs their business first hand, may have immediate opportunities to work with established clients, and will share commissions earned.  If you work as an individual, you will learn through the company training (or one-on-one), will develop your own client base, and will not share commissions earned.  

Teams usually operate under one agent’s identity and brand.  If you would feel a loss not having your name in lights (actually on signs/riders, etc.) then being part of a team may not be right for you. Either way, your first decision should simply be whether you desire to build your business as an individual or as a member of a team.

Consider Company Size

There are many advantages to associating with a small firm as well as a larger one and this decision is really a personal one.  Ask to see each company’s listing presentation and standard marketing plan and compare as if you were a seller choosing a company to attract a buyer.  What, exactly will you be able to offer your seller clients?  How will the company’s reputation and standing help you get business?

Systems, Support & Materials

Ask about systems, support, and materials available to help you grow your business, and compare them, side-by-side. Don’t forget to ask about the cost of said systems, support and materials!  Keep in mind that the more services a company offers, the higher the monthly or quarterly expenses. It's important to know which services offered are mandatory and which are optional.

Commission Splits

There are an amazing array of commission structures to consider.  Keep in mind that It’s never a good idea to make your choice of a broker based solely on commission. After all, an offer of a high split doesn’t mean much if you have little or no commission to split.  

Choosing is Serious Business

Choosing the right broker is serious business.  It's critical that you choose a manager that you feel has your best interests at heart and can be generous with their time and energy to help you get up and running in a short period of time.

After you have gathered all the information and compared & contrasted systems, support, materials, and fees, choose the manager and company that best supports your future success.