As a real estate agent, it is necessary to find the right broker. There’s more to the decision than just the commission split. You need to consider other factors in your decision-making as well. Here are a few things to keep in mind when choosing the right real estate broker.
Determine Your Income Needs
You need to assess what your income needs are when you’re comparing different brokers. After all, you’d want a brokerage that can support your financial needs.
Don’t just consider your personal expenses when determining your income needs. You also have to put into account your projected real estate business expenses. With this information, you’ll be able to make better brokerage comparisons.
Don’t Focus on the Commission Split
Many new real estate agents make the mistake of focusing solely on the agent-broker split. While this is a vital aspect of your decision-making, it shouldn’t be the primary basis.
You should also focus on the services you’ll be able to get from the brokers. These services might actually help you start and grow your real estate business. Weigh in the other aspects and make a pros and cons list. The end income result might actually be better despite your initial thoughts on the commission split.
Consider the Mentoring and Training Aspect
If you’re a new agent, you’ll definitely need more training in areas such as contracts and negotiations. But also consider what other training opportunities the real estate broker can give you. For example, getting more training in sales and marketing could be a plus and help you with your real estate business.
You may also consider mentoring. However, this often has a cost, such as a per-transaction fee or a temporary lower split. So, it’s best to look into how mentoring is done in a particular brokerage to understand its financial aspect better.
Take Note of Additional Expenses
Many people forget to factor in the additional expenses when choosing a real estate broker. But it’s essential not to forget the incidental and office expenses because they can add up. For example, some real estate brokers charge their agents for copies and phone services. If you can, find out what additional expenses would come with the brokerages.
Compare Broker Lead Referrals
It’s essential to ask the brokers how you’ll be receiving leads and prospects. Ask about their projections for phone leads, floor time leads, and website leads. You can use these estimates in an income funnel approach to determine the income results. You might even find that a lower commission split in one brokerage is more advantageous than a higher one based on the prospect leads.
Final Thoughts
There’s a lot to consider when choosing a real estate broker for your real estate business. Despite what many new agents believe, there’s more to it than just the commission split. You have to factor in your income needs, the brokerage's services, the training and mentoring, the additional expenses, and the prospect leads. Research your options to make an informed decision that will best help your real estate business grow.
If you’re a real estate agent looking for work, Smith Street Homes is currently looking to expand our team. We are a Genesee County real estate company searching for self-motivated agents willing to learn and eager to grow. Join our real estate team now!