CHICAGO – In real estate, brokerages are the apparatus through which real estate agents get the job done. Finding the right apparatus is a crucial piece to your career path puzzle. The brokerage you choose will not only influence your business but also mold your professional identity, long-term success and growth.
You might be wondering how to go about choosing a brokerage. Trust me, I was there at one point. Before you commit to a particular brokerage, make sure you have the info you need. Below are some important questions to ask, and the answers you’re given will help you figure out the right decision to make.
What training and support opportunities are provided?
For agents new to the industry, the right form of support and training is necessary. What the brokerage offers in training and support could be a deciding factor. You should inquire about the types of training programs, mentorship opportunities and additional professional development offered.
Additionally ask about the availability of support staff, marketing assistants, etc. A brokerage that offers strong support can significantly ease your workload, allowing you to focus on sales and clients.
What marketing support is available?
Marketing is essential to building your brand, but it needs assistance. A brokerage that provides marketing support understands how crucial it is for generating leads and retaining clients.
Inquire about the marketing resources provided by the brokerage. This may include in-house support, outsourcing opportunities, digital advertising or social media management. Ask about their marketing strategies and how they plan on getting ahead in reaching a broader audience.
How will you be compensated?
Your compensation for selling a property is your bread and butter. But the money you make from the sale goes to your brokerage, and you get only a portion of it. Traditionally, that has been known as a commission split, but industry practice changes meant to emphasize the choices buyers and sellers have when they work with a real estate professional dictate that we come up with a new term, such as “compensation split.” Regardless of what it’s called, you’ll want to ask this question.
You should also ask about any tiered structures, additional fees, or caps related to the commission. Some brokerages offer high splits but may charge marketing fees or transaction fees. You’ll want to know all of the brokerage-related expenses you’ll incur so you can make an informed decision.
You’ll also want to take a look at the brokerage’s independent contractor agreement. As an agent, you’re working under the brokerage, but you are an independent contractor. You’ll want to see the agreement to make sure the terms make sense for your business.
What technology and tools are provided?
Technology can massively impact your performance at a brokerage. Ask about CRM software, marketing assistance, or any other digital tools that the brokerage offers.
It is also essential to understand the brokerage’s approach to adopting technology. Is the brokerage open to trying new software? Is the brokerage prepared to upgrade its current software? Cutting-edge technology could give you a competitive boost.
What is the brokerage’s reputation and market share?
The market identity of the brokerage can influence your ability as an agent to attract clients. You should research the brokerage thoroughly. Try to understand its standing in the market. A well-respected and reliable brokerage could improve your credibility in the market.
Ask about the sales history, success rate in the market and other strategies that impact the business.
What is the office culture like?
The work culture of the brokerage is another essential factor. Office culture can impact your performance and overall success. You do not want to be stressed out at work because of conflict between colleagues.
Ask about the office environment, team dynamics and collaboration. Check to see if the brokerage is inclusive and offers a collaborative culture.
What are the opportunities for career growth?
You should consider the long-term growth at any brokerage. Where do you see yourself in five years? Maybe managing a team or potentially running your branch?
Ask about potential paths for advancement such as leadership roles or opportunities to manage people. A lot of brokerages offer structured development programs while some are more flexible.
How are leads generated and distributed?
Lead generation is critical to an agent’s business. Ask how the brokerage generates leads and how are they distributed amongst the agents. Some brokerages provide leads to their agents while others require you to generate your own.
Inquire about the number of leads provided as well as any fees associated when the brokerage provides the lead. A robust lead generation system has the potential to make or break any brokerage.
As a practitioner, your career is partly in your hands and partly in the hands of the brokerage you work at. Don’t fear to ask these questions as they are what will help you decide. A well-established brokerage will have the ability, capacity and resources to provide you with the proper answers, guidance, and development skills that will allow you to progress in your career as a professional. It will invest in you financially and hone your expertise—so, choose wisely.
© 2024 National Association of Realtors® (NAR)
