A seller’s market is likely throughout the rest of 2021. But a possible shift in early 2022 to a buyer’s market is a real possibility for several reasons.
You’ve completed all your studies to become a licensed real estate agent, but now you’ve got to partner up with a brokerage in order to start practicing your trade. This article will list 4 tips to help you choose the best brokerage for you.
After undergoing all the necessary training to become a licensed real estate agent, it’s time to start the search for a brokerage to work under. While you might have all the license requirements needed, you won’t be able to actually start working until you’re with a real estate brokerage. It’s now your job to choose a sponsor so you can start practicing your trade.
This is a crucial choice to make because the brokerage you work with will be instrumental in the success and profitability of your career. Each brokerage is different and will offer different levels of support and services to each agent under their umbrella. What you want is a brokerage that will give you everything you need to learn the tricks of the trade and give you the information and support needed to succeed in your career.
That’s why it’s important that you find the right fit for you. And finding a brokerage to work for is a lot different than being “interviewed” by a traditional employer. Rather than employers having all the power to decide who they will pick to fill a spot in their organization, it’s you who will technically be doing the interviewing before deciding who to work with.
In order to make sure you choose the right brokerage, there are certain steps you should take. Here are some tips for choosing the right real estate brokerage to work with.
1. Inquire About the Mentoring and Training You Would Get
Some brokerages sign up their agents and then basically leave them to their own accord, while others offer ongoing mentoring and training, especially for newbies who may have studied their textbooks but need real-world experience on the job. Every new agent needs someone to show them the ropes and has access to a mentor to help them negotiate deals and understand the procedures relevant in their markets.
Ask about the type of training and mentoring offered and what kind of cost it may come with. For instance, many brokerages may offer a lower commission split or charge a small percentage per deal in exchange for mentoring. Assess what your current needs are and what the brokerage offers before you make your decision.
2. Find Out What the Commission Split is
You’re in the business of real estate to make money. It’s your job, and you should be paid accordingly. But your take-home check will depend on the commission that the brokerage charges per transaction. This split can vary from one brokerage to the next and can vary a great deal. For instance, 50/50, 60/40, 70/30, 80/20, and even 90/10 commission splits are just some examples of the types of arrangements that agents have with their brokerages.
It’s important to note that what the brokerage initially quotes isn’t necessarily written in stone. Much like everything else in real estate, the brokerage commission split can be negotiated. There’s no harm in wheeling and dealing with the broker for a commission split that’s more in your favor.
Don’t forget that whatever your cut is, there are also taxes and expenses that will bring that number down, so make sure you settle on a number you can be happy with. Also, some brokerages offer salaries and hybrid models between a salary and commission split. Consider all your options before you make your final decision.
3. Consider the Brokerage’s Reputation
As a real estate agent, you are an independent contractor with your own business. But you are also affiliated with the brokerage you work with. Prospective clients will associate you with the brokerage you’re with, and as such, you want to make sure the brokerage is well-respected and has a good name. The brokerage’s brand recognition and reputation will affect your business, so you’ll want to make sure that you’re associated with a place that people have a positive association with.
4. Determine Whether You Want to Work With a Franchise or Independent Brokerage
You may be familiar with brokerages like RE/MAX, Century 21, or Keller Williams, to name a few. These brokerages are large franchises that have offices all across the nation. But then there are also local independent brokerages that are not affiliated with a big-name franchise. There are pros and cons to working with either type of brokerage, and your job is to determine which type of entity you want to work with.
The pros of working with a franchise are obvious: brand recognition can go a long way, especially since many people have a level of trust in these types of companies. But working with these firms might also mean less control over your business.
An independent brokerage, on the other hand, may afford you with more control over how you conduct business and may have a closer tie with the local community. But they might not be able to offer as much support and training as a large franchise might be able to.
The decision you make when it comes to which brokerage to work with is an important one. Having said that, you don’t have to stay at one brokerage forever. But before you decide where to go for a real estate job be sure to consider all the above-mentioned factors to ensure your decision is a sound one. If you are ready to apply for a home mortgage, Sammamish Mortgage can help. We have been serving buyers across the Pacific Northwest for 25 years. We serve all of Washington, Oregon, Idaho, and Colorado and offer many mortgage loan programs. Get in touch with Sammamish Mortgage today to get started.