Embarking on a career in real estate is a monumental step, filled with opportunities and challenges alike. One of the most crucial decisions a new agent faces is how to choose a brokerage to affiliate with. This decision can significantly impact your professional trajectory, affecting everything from your earnings to your job satisfaction. So how can you make an informed choice that aligns perfectly with your career aspirations?
In this blog post, we provide a structured framework aimed at helping new real estate agents effectively evaluate and rank potential sponsoring brokerages. With this guide, you’ll have the tools you need to make an informed decision that sets the stage for a rewarding career in real estate. Read on to find out how you can navigate this important choice with confidence.
How To Choose a Brokerage to Hang Your License:
Ranking Criteria and Scoring
1. Commission Splits
How favorable is the commission split? Does it align with the level of support and training you want to receive?
1 = Highly unfavorable || 5 = Highly favorable
2. Monthly Fees
Are the initial joining fees reasonable? Do you have to pay high monthly fees?
1 = Very high monthly fees ($100’s+) || 5 = No or minimal fees
3. Training and Mentorship
Does the brokerage offer quality training programs? Will a brokerage lead or real estate agent mentor you?
1 = No training | 5 = Comprehensive training and mentorship
4. Marketing Support
Is marketing support available and effective? Do they commit to advertising the brokerage and agents?
1 = No marketing || 5 = Extensive marketing support
5. Work Environment and Culture
How conducive is the work environment? What do other agents at the brokerage have to say?
1 = Poor culture || 5 = Excellent culture
6. Market Presence
How strong is the brokerage’s market presence? How involved is the local brokerage with the local community?
1 = Little to no presence || 5 = Strong presence
7. Legal and Contractual Obligations
How fair are the contractual terms? Do you trade enough fee-sharing for support?
1 = Highly restrictive || 5 = Fair and reasonable
8. Peer Reviews and Recommendations
What is the general peer and industry perception?
1 = Poor reviews || 5 = Excellent reviews
9. Technology and Tools
Are modern tools and technologies provided? Will you have access to a Customer Relationship Management software like Moxiworks?
1 = Outdated or no tools || 5 = Cutting-edge technology
10. Accessibility and Communication
How easily can you communicate with management? Do other Agents communicate with each other?
1 = Poor communication || 5 = Excellent communication
- Use our Google Sheet or make a table on a piece of paper (11 rows and then a column for each brokerage).
- In each row write one of the key aspects
- Multiply each score by its weight
- For each brokerage, add their weighted totals together
- Divide the total score by the number of criteria to get an average score for each brokerage.
- Rank the brokerages based on their weighted average scores.
– The highest-scoring brokerage may offer a good quantitative starting point, but consider other qualitative factors.
– Consult with other professionals and conduct interviews to corroborate your scoring.
Using a scoring system, real estate agents can systematically evaluate and compare brokerages. Making it easier to choose the most suitable brokerage to hang your license. Have you used a system like this to guide your decisions?