What’s it Like to Work at a Real Estate Brokerage?
As a salesperson agent, working at a real estate brokerage is a requirement. But, just because you have to work at a brokerage doesn’t mean it’s a bad thing.
These brokerages are run by licensed real estate brokers who have undergone further training and have substantial experience in real estate.
Whether you are considering a career in real estate or are about to get a salesperson license, this article will provide you with the necessary information on what it’s like to work at a real estate brokerage.
Brokerages Offer Career-saving Resources
Real estate agents are required by law to work under a brokerage, not as employees but as independent contractors.
Through this arrangement, brokerages offer career-saving resources to agents in exchange for a portion of the agent’s commission they earn following each real estate transaction. These resources include:
- Training and education
- Office space
- Access to networks and collaborators
- Administrative staff to support agents
- Mentorship programs
- Marketing and advertising
Since real estate brokerages want to maintain the integrity of their reputation, they will want their agents to become the best of the best. To achieve this, these resources are available to their agents to guide them into successful careers.
When a brokerage equips agents with the support they need, it can ensure a better interaction with the homebuyers and sellers. This support looks like many things, like a network of third party services, mentors and coaches, and a workplace culture that is built on encouragement.
Networking and Collaborating with Other Agents
Brokerages recruit real estate agents at almost every level and specialization, from agents looking for their first opportunity to agents with years of experience who want to transition into a new brokerage. This creates an adequate environment for real estate agents to network and collaborate.
Because the real estate industry is very competitive, building relationships as a real estate agent goes beyond interacting with just buyers and sellers. It is equally important for real estate agents to connect with other agents.
By connecting with a fellow agent, you may get hints about new property listings, snatch a good deal for a future client, or even get ideas on a niche different from yours.
There’s a Brokerage Culture
The term culture describes the goals, mindset, shared values, and patterns that are characteristic of the brokerage. A brokerage's culture can positively impact the performance, happiness, engagements, and lead generation of an agent.
When it comes to brokerages, there is no one-size-fits-all, as every brokerage has its own culture. Before joining any brokerage, you should screen them thoroughly to know which can provide the best culture for your productivity.
Brokerages Offer Training
Brokerages often offer training and educational aids to their agents so that they stay up-to-date on the best practices for real estate transactions. A wide range of possible topics is covered during these training sessions, like understanding contracts, best sales practices, or connecting with your sphere of influence.
These trainings are good as they expose real estate agents to the inner workings of the industry, therefore, expanding the possibilities of them making successful sales.
Each brokerage provides its type of training and set of training courses. Some may have online platforms, while others may have in-person venues where agents can go to learn. This should also be a factor to consider when deciding on which brokerage to work at.
What are the Costs of Working at a Brokerage?
After agents have successfully made sales, the brokerages make money by taking a split of the real estate agent’s commission. Brokerages may also charge transaction fees and monthly fees for office spaces, marketing, and other resources.
These costs depend largely on the brokerage, available resources, and how good an agent is. Some brokerages may offer a 60/40 or 70/30 split; however, the better an agent is at closing deals, the better the split they are offered.
What is a 100% Commission Brokerage?
A 100% commission brokerage is a brokerage that gives real estate agents all their commission on every successful transaction. Unlike the traditional commission model, this 100% commission makes it possible for agents to make more money from their real estate transactions.
These brokerages may provide office support services to agents at very low monthly fees. Because most of the business is run online, they have little to no overhead cost. This way, they can keep expenses low and get their money by charging flat fees. Depending on your broker, these fees can range from very low to very high.
Are All Brokerages the Same?
All brokerages are not the same, and just as much as they differ in costs, they also differ in the amount of support they offer their agents. Some brokerages will offer as many services as possible, while others will offer fewer and some none.
Because these services are important to being a successful real estate agent, there are some elements you should look out for when picking a brokerage to work at. They are:
Culture fit is an important factor when figuring out what brokerage to work at. How an agent melds with a brokerage’s culture will determine how well they perform and how long they stay.
In other words, if the culture of a brokerage doesn't fit your work style, then it makes going to the office and working with others harder.
The real estate industry continues to evolve. Therefore, as a real estate agent who wants to stay relevant, you would be required to keep learning and remain up-to-date with the current real estate trends. Working at a brokerage that offers training resources to its agents is the best way to do this.
When choosing a brokerage, you should always put the ones that encourage agent leadership through mentorship programs at the top of your list. This form of cross-training tends to be beneficial as new agents learn the best real estate practices while experienced agents invest in their personal growth and development.
Should You Work at a Brokerage with a Broker’s License or Go it Alone?
When you get a broker’s license, you do not have to work at a brokerage. But, is that a good idea? Of course, broker’s license holders can still work at a brokerage and oftentimes they are titled broker associates.
But whether you should do it alone or sign with a brokerage depends on what kind of career you want to create for yourself. Here’s a few pros and cons to consider:
Pros of Working Alone
- You officially work for yourself
- You can earn more money
- You have more flexibility
Cons of Working Alone
- Getting your resources can be costly
- You don't have limited access to networking and collaborations
- Your success completely depends on you
Pros of Working at a Brokerage
- You get all the support you need
- Your access to networking and collaborating with other real estate professionals is easier
- You don't need so much money to launch your career.
Cons of Working at a Brokerage
- Your job responsibilities are limited
- You don't make as much money
- You work under the rules and regulations of the brokerage.
Final Thoughts on Working at a Real Estate Brokerage
Real estate brokerages support agents in taking their real estate careers to the next level by giving them a slew of resources and services.
One of the best resources is training. Other than that, agents can experience an office environment that promotes networking and collaboration to help everyone thrive.
TL;DR: Working at a brokerage is required for all salesperson agents in real estate. Brokerages are set up to give their agents career training, a community to network with, and a resources to help them become successful agents.