I'm sure in every city there's a well established, well known real estate company that has a reputation for success due to the longevity of their company. Some big names in Real Estate have been around for decades so they must be doing something right... which in turn makes you believe you'll be successful by joining their brand. I'm sure there is also the popular brokerage in your area that's leading the pack and doing everything spot on with their marketing, which in turn leads to massive amounts of listings and sales, and their energy during their pitch is enticing.
One of the reasons a majority of real estate agents fail in their first year is because they don't choose the right brokerage to meet their professional needs. You spend two weeks in a classroom listening to different real estate brokerages pitch you on why to choose their brokerage and to give them a call once you pass your exam, but how do you choose the right brokerage for you without getting lost in the sales pitch?
Understand the Agent/Broker Split
Before you choose the brokerage with the "best" split, make sure you understand what you're getting for that split. More often than not, a split should be considered a representation of the amount of support you'll receive across different areas of your business.
An 80/20 split with no monthly dues or a $450 flat transaction fee may sound nice for your bank account but you have to understand what you're getting in return. Depending on the median sales price in your area, the office probably isn't making much profit per deal which leads to smaller incentives for the broker to make himself available to you. And if the office is making a small amount off each deal, how are they able to afford advertising or marketing to get new leads for agents to work while still covering the cost of overhead or provide training of any sort?
This isn't true for all brokerages, but it is a good indicator of what to expect. The 80/20 split is often a small office and would be better served for more experienced agents with a solid network of referrals that don't need much assistance from a real estate broker in order to run their business.
More Than A Number
You may choose to join that a big name company with a 70/30 split knowing it will offer you everything you need, and in some cases, it will. One of the biggest reasons we've heard of people leaving big brand names is because they became just a number. They went to every class offered and mastered cold calling through office provided training, but never felt like their real estate success was encouraged or a priority for their team unless they were a top producer. Your monthly dues often go toward standard class training, access to a company portal to purchase branding materials, and the rest is up to you to figure out.
Company Culture & Support
Also, take a look around the office. What's the vibe like? Do agents appear happy? Are they working together? Is it a culture you'd thrive in? Some offices are more competitive with real estate leads while others are more encouraging and happy to help their colleagues.
It's up to you to decide what will fit both your personal and professional office checklist. So make a note for when you're interviewing at brokerages that you should be asking questions about a wide variety of topics, as well as asking questions about the broker himself and how often he's in the office and how willing he is to assist his agents.
As a newer agent, you're going to need support. You're going to have questions on paperwork, you're going to need leads, you're going to need advice and wisdom from fellow agents around you. So be sure to choose the broker, the office support, and the environment- not the split.
Interested in becoming part of the MRG team? Learn more about the support we provide our agents and our tiered broker fee.