How to Choose a Broker

Question

Hello Everybody,

I am currently waiting for my CA Real Estate Salesperson test to be scheduled. In the mean time does anybody have any experience with which company is good for beginning agents. There is just so many real estate offices and it is difficult to choose which one to begin interviewing.

Thank You

David Hunter · Answer

Hey Ian,

Ever think about working for a top-producing agent???  Like you said, training is very important, but it doesn't really matter which company you choose.  You're in business for yourself.  That's why I suggest working for a top-producing agent first.  You get to learn the "real" business, not the generic lessons your broker will teach you.

Joseph Cox · Answer

When you have passed your test, you will no doubt receive communications from brokers wanting to sign you on. Some brands (KW, C21, etc.) you will recognize, others not so much.

These days, it's all about how you market yourself, and how much you are prepared to invest in training, or your new broker is prepared to, and not so much about the company you work for.

I looked at KW first, and had I gone that route, I would have paid $200 for 3 days training, plus fees for office space, signage, etc., and had to pay for my own cards, marketing material, and so on—you get the picture. Some brokers even charge for photocopying!

You might find a broker who provides a lot of stuff for nothing, but be careful not to sign any commitment agreement!

JOAN DICKIE · Answer

@James P. , congratulations on making the decision to become a real estate agent.  Before you start interviewing brokerages, decide what you want to do with your license.  Some brokerages only want top producers, some will train.  Some brokerages won't push you to produce, which is better for people who want to be investors and buy/sell on their own behalf.  Some brokerages make it difficult to do your own sales.

Once you've decided what you want to do with your license, set up appointments for interviews.  Don't go into the interview like you are asking for a job - interview the broker like you are hiring THEM.  What are their commission splits?  What are the monthly office and MLS fees.  What fees does the broker pay, and what fees do you pay?  Do you buy your own signs and marketing materials?  How much will the broker charge for your personal transactions?  If it doesn't seem like a good fit, move on.  I also work for KW and find it a very good fit for me.  Easy to transfer to another market center, and the office is very supportive.  It may not be the best fit for everyone though.

If you have any other questions, please don't hesitate to contact me.

JOAN DICKIE · Answer

@Ian Lockwood , "teams of agents" is kind of like a mini realty within a brokerage.  You have the head realtor who is responsible for generating a lot of listings.  This person generally hires a group of people to support this activity, including admin support.  There are also buyer's agents, who work with the buyers generated from the listings.  The buyers agent pay a portion of their commission to the realtor for the lead.  This is a great way to learn to work with clients and learn your market.  If you chose wisely, you will get alot of training.  It is a great way to get a start on your training and build your database along the way (because as you already know, that database is your business.

Jim Wilson · Answer

I got my license in NY last year and interviewed a few brokerages before making the decision to join KW. The education was the most important to me and after being in real estate for that first year I can say I don't regret going with KW.

KW is highly technology driven but they also offer classes in the office. Usually the first one they offer is called Ignite. This is geared for the new Licensee to do at least 16 transactions their first year. Different chapters deal with Prospecting scripts for buyers and sellers, your sphere of influence, open houses, handling objections, etc. The class is usually 6 weeks and you will be role playing as well as making live calls.

There is also another program by KW called BOLD. I have not actually taken it but from what I hear from people that have is it's intense. A good intense that is. It's an 8 week program, one day a week. Last November when they did it here agents averaged 14 written contracts during the program.

In our office we are also set up with a mentor. This varies from office to office on how it is set up but you meet with them weekly do go over your goals as well as any areas you need help on. You can also bring them to listing presentations or buyers consultations as well as go with them on theirs.

The thing that makes KW offices special really are the people. They seem to attract agents and teams that really want to see everyone succeed and will help you at any time.

Ian Lockwood · Answer

I have a similar question about choosing a real estate brokerage. I am currently taking classes to obtain my license in New Mexico. I also recently moved to Santa Fe, NM and I have been going to all over town trying to decide where would be the best fit for me. I've realized there are two companies in town that offer extensive training, which I view as essential since I'm brand new to real estate. One is Keller Williams and the other is Barker Realty, which is a medium sized (about 50 agents - all full-time) company that is only located in Santa Fe, but are a big name in town and represent a large number of properties. Conversely I believe KW-Santa Fe has about 150 agents. Both companies do a combination of residential and commercial properties which I view as a positive because I have interests in both.

They both have told me that they would like to hire me as an agent once I acquire my real estate license. The problem I am having is deciding which would be the better fit for me. Being new to real estate it's tough for me to be objective in deciding which company is best. I'm more concerned with the training I will receive since I am brand new to real estate, not details like commissions splits. I'd rather take lower commissions if I knew I was receiving superior training. I'm thinking long-term education and growth.

They both put their best foot forward and tell me how great their company is. When I sit in KW's office their pitch sounds great and then when I sit in Barker's office their pitch also sounds great. Yet I know they represent two very different companies, mostly since KW is so huge and Barker is more local.

The impression I get (although I'm not sure) is that Barker's training would be more person-to-person, while KW's training might be more technology based. Although I know KW's uses "teams of agents" which is a concept that sounds intriguing although I don't completely understand.

I was wondering if people could offer me some insight into making this decision, even though you might not know anything about Barker since it's a smaller local company.

Here is there website if it helps at all: http://www.santaferealestate.com/eng

One other consideration is that I will probably only be in Santa Fe for three years. I'm not sure if KW being a national company might make them more appealing for that reason. Maybe not.

Lastly I should also add that I have a VERY big interest in personally investing in real estate, however I probably won't wade into the investing waters in the near future because I don't have the funds.

Thanks for you help. Any insight is greatly appreciated since I will have to make a decision shortly.

Brian Ortins · Answer

I wish you luck, and feel free to reach out.

James P. · Answer

@Brian Ortins

Thank you for responding promptly and for the valuable information. I want to get my hands on everything. My goal is to try everything so that I may find my niche in Real Estate.

Brian Ortins · Answer

Hi James, I just passed the MA real estate exam and chose a local brokerage that specializes in short sales, investors/investment properties. I found that I was offered a higher commission split versus going with a large national franchised brand. I will be learning how to flip properties (a system different than what I currently use) with the owner and other investors. This was a better fit for me as I am more interested in real estate investing versus being only an agent, but I will have all of the tools to earn commissions, just as I would at a national brand. Figure out what you are looking to achieve when joining a brokerage, and ask questions accordingly. Do you want to be an agent only, or a firm that focuses on all aspects of real estate investing? Hope this helps!

How to Choose a Broker

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