5 Ways that Help you Choose a Real Estate Broker
Did you just get yourself a real estate agent license? Have you been facing difficulties in
choosing from the plethora of real estate brokers to work with? Do you want to work with a reputable real estate brokerage firm? I say congratulations, simply because you are fortunate enough to have stumbled upon this article whose purpose is to give you a brief but yet succinct answer to the above questions as well as guide you through your decision-making process.
Who is a Real Estate Broker?
A real estate broker is a state-licensed individual who has gained enough experience as a real estate sales agent while working under a real estate brokerage firm and has undergone professional training in basic broker courses.
Real estate brokers carry out such functions as guiding their clients through the process of real estate transactions, lists properties for sale on behalf of clients, help with the advertisement of property as well as arrange and oversee open houses and other viewings.
Brokers work hand in hand with their clients to determine what they need, help locate properties based on the client’s specifications and budget, assist them with their financial preparation, and escort them to visit properties.
Whether you are relatively new in this occupation as a real estate agent, or you are an experienced real estate agent (buyers’, sellers’ or dual agent), one thing you should have to scale up your career is a real estate broker.
It is part of the requirements by some states that a licensed and reputable broker sponsors you when you take your real estate exam. This is because a real estate agent cannot act as an independent real estate agent- you must work on behalf of a licensed real estate broker for you to attract the due legal recognition.
Relax, don’t be intimidated by the process of finding the right real estate broker to work for as in this article, we are going to provide you with five(5) different steps to consider when making that bold decision to choose the right real estate brokerage firm to work for.
So, how do you go about selecting the best broker that will suit your career? Read on as I provide you with the ultimate five(5) steps that will help you choose a real estate broker.
Step 1: Ask About The Commission Split
Asking about the commission split is very important when it comes to deciding whether you should work for a particular brokerage or not. While elements like market share, reputation, resources, and support are worthy of consideration, you will want to go for a brokerage that presents you with a considerable commission split, one you can live with.
However, it is worthy of note that commission often splits usually get better with good sales volume and experience. Here is an example of how commission splits works:
For instance, if you sold a $500,000 vacant building and the average commission charged in your area is exactly 6%. The buying and selling agents will first split the 6% between themselves. What is left is 3%, which, when calculated, gives $15,000. The remaining $15,000 is then shared between you and your broker at an agreed rate of the commission split. Assuming you are on a 70/30 commission split, i.e., you take 70% while your broker takes 30%. If calculated, 70% of $13,000 will be equivalent to $9100, and 30% that is due to your broker is equivalent to $3,900. Bear in mind that all these are before taxes and expenditures (Real Estate Express ).
With this info available at your disposal, you can easily play your way around, ensuring a good commission split for yourself. Obviously, any company that chooses to offer such a commission split as above will put more money in your pocket, and you should take advantage of this.
Step 2: Evaluate the Culture of the Brokerage
The importance of evaluation of a company’s culture cannot be over-emphasized. Much importance should be attributed to this critical factor in the course of making a decision. However, to say, this will be easy will be an absolute expression of deception. It will be tough to attach a specific value to the company culture of a real estate brokerage.
Meanwhile, anything that is worth doing at all is worth doing well. The fact remains that it is a significant factor whose significance should not be trivialized. Ensure to take necessary steps towards actualizing this in order to evaluate the company’s culture critically. This is in a bid to prevent a significant cultural mismatch in the long run.
Step 3: Decide Between an Independent Brokerage or a Franchise
At this point, the decision is yours to make. It either you decide to work for an independent brokerage or a franchise. You should carefully reflect on this and not make a hasty decision.
Even though it is common that franchises usually apply more pressure in dealing with their agents compared to an independent firm. Nevertheless, it is essential to know that when it comes to training, coaching, and mentoring, they rank higher.
Most independent firms are usually comprised of small to midsize teams. The benefit here is that you have the liberty to work outside the team and conduct your own personal business.
According to a report from the National Association of Realtors, about 53% of realtors prefer to work for independent firms. If you place much significance on your independence, then an independent brokerage may be the best option for you.
Step 4: Business Opportunity
Depending on the amount of experience you have acquired during your real estate career, it is crucial to make an inquiry into what a brokerage you intend to work with offers or when it comes to securing new business on behalf of agents.
Most times, experienced agents are left with the responsibility of generating their own business. While newer agents require leads to work, the majority of experienced agents achieve this through past clients, referrals, and lead generation.
For this reason, you must understand whether the brokerage offers business leads and factor in the potential cost of the leads as made available by the brokerage when you considering whether or not to join the company.
Step 5: Learn about its Reputation and Niche
This you can achieve with a simple search on Google. As if you are a buyer, enter a search sentence like- “new and beautiful home for sale,” including any particular community name. A couple of names will come up. At this point, all you have to do is scan through for a brokerage with a solid market presence bolstered with a good quality reputation.
Resultant brokers with high market shares are most likely dependable when it comes to lead finding. The question now is, what niche are you most interested in? It is only after you have successfully answered this question will you be able to make a selection from the search results.
For you to conveniently select the right real estate broker, make sure that all the factors above are used as a benchmark to make your selection. Go for a brokerage that will contribute immensely to your career, as this will go a long way in determining how far you go with your real estate career and the quality of experience you will acquire as you progress.
Dominic Beaulieu is a gaming enthusiast turned tech writer who covers variety of topics like design, development, etc. He uses his experience in translation at TheWordPoint translation service as a localization specialist and counselor.