The brokerage model of real-estate is rapidly changing. With the popularity of home offices, many people are ditching the standard brokerage model and opting for cloud brokerages. Here is how I suggest you go about deciding whether to work for a large or small broker:
Large “Big Box” Brokerage (Coldwell Banker, C21, KW): More people and schools built into. You get to hang out with coworkers. Support staff. There is always an advantage of being around people physically.
Cloud brokerage: Work from home. Typically cheaper. You have access to way more technology. The only bad thing is cloud brokers have very small presences and don’t have the reputation.
Boutique brokerage: Very small and tight knit. They can have good reputations and huge market shares, It would be like working for a very small business. Not as many people or resources but boutique brokers specialize and you can get access training that many brokers may never provide.
Newer real-estate agents need:
- Someone to help them learn to get business & prospect
- A person to help them learn to go on listing appointments, fill out paperwork, etc.
- You need a large firm to give you the reputation so that clients will trust you
- When you’re interviewing brokers you need to go into the mindset of “Me” instead how to please the “brokerage”
Many times, when newer agents go into a firm they look at it as interviewing for a job. You should go into it like “What are you going to provide me?”.
- You’re going to be paying the brokerage
- As a real-estate agent you are an independent contractor
- The broker isn’t going to pay you any money
- To a certain extent, you’re the boss. The broker should be interviewing for you.
2. Don’t fall for the stats and propaganda & be wary of sketchy firms
- All real-estate brokerages spin statistics to make themselves look the biggest
- Every real-estate broker is going to be the BEST, top-notch broker
- Brokers are trying to make themselves look the best, but get down to brass tacts
Be wary of real-estate brokers that promise you the moon. If you are being aggressively recruited, ask if that person is a commissioned employee.
3. Ask for the most important data
- What’s the split?
- What type of training do you offer?
- What percentage of agents are still at your firm from 2 years ago?
- Interview other employees
- How are you different from other firms?
Do you own due diligence as well. Look around. Does the firm you’re interviewing have a large presence? Make sure to research a firms core values, statistics, and what exactly the firm can offer YOU.