Keller Williams Vs. EXP realty Vs. Small brokerage
I just got my sales license in NYC, my main purpose to have it is to use it as a support for my investing, and my architecture practice.
My hope is to have MLS access in different states as NJ & OH what I'm still not sure if its possible. it would be just to analyze comps in those states
When I took my 75 hs course, the trainer told us we were crazy to go with the big ones referring as sharks to learn the trade.
talking with a successful real state agent friend she suggested the big companies are the best if I have the chance to be part of a team.
After some meetings these are the 3 options I'm considering;
- I had a great interview in a boutique office with a broker who I really like and respect (6/7 persons office) She does investment with foreigners and know about investing
- I went to a career night in Keller Williams, where the trainer fell short in selling me into it, but the REIANYC leader who I really respect, told me she loves it and its a great company.
- Many people talk wonders about EXP, my only concern is as new in the field, I'm not sure if the on line platform would be enough to learn the trade and make it work, it seems it works wonders for experienced people. and also their presence in NYC market is not that big yet. what I'm not sure how would work for me.
Any tips or ideas experienced agents?
I'm at lost
If you are an investor needing more tools, where you hang your license is inconsequential. You do fine with Homes.com or Realtor.com Once you find your dream property you mention to the listing agent you are a licensed agent want a referral commission.
Honestly, I don't see why you want to go do open house in Harlem or showing rentals working at these firms. Being on a team means you are 24/7 working odd hours. Focus on your architecture business and hang your realtor license in your office. Many realtors have other licenses and credentials. We have CPA, PE, JD, MD and a badged detective in my brokerages. My broker where I hang my license is an attorney and a businessman also.
@Carlos Pelegrina - I just changed brokerages from KW to eXp this past week. I was with KW since 2014. Training as a new agent was good. KW is a training and recruiting company and not focused on developing the mid to high producers unless you can move into the ownership or leadership roles or pay tens of thousands for coaching. KW has profit share, but nothing compared to the potential revenue share of eXp. KW is also very expensive when you compare to other smaller cap based brokerages or transaction fee brokerages. In my mind brand does not matter unless you go with a Sothebys or other high end luxury brand. In some cases, having no brand is better than having an established brand. PM me and I would be happy to elaborate.
I think eXp has a mentorship program, but it is oriented towards agents who have experience. The cloud based brokerage is going to blow up the classical brokerage system because of the cost of doing business. Also, eXp gives back most of its revenue back to the agents and the profit share is not dependent upon the profitability of the office. Since each office of KW is independently owned and operated, they will not give profit share unless the office is profitable.
Hope this helps.
Best of luck!
Thank you @Darren Sager @Cara Lonsdale @Sam Shueh @Russell Brazil @Martha Nowlan @Justin Reed & @Dan Bernstein for this great discussion and input, (I thanked some of the previous comments earlier on the thread).
I could have never have this information and points of view in any place.
I really appreciate the sharing of your personal profesional experiences and help.
Thank you.
I would just like to add my two pennies, as a relatively recent agent in NY and working for Sotheby's. My experience getting started as a part time agent, Working as a Project Manager during the day building high-rises in NYC and currently a 114 unit apartment building in Westchester, I find myself only going into the office to make balloons for open houses and print off color copies. Sometime I would need to do phone duty, but that was rare, given my schedule. My mentoring, or the place I would ask questions and get the most responsive help from was a long time friend who connected me with the interview. None on my deals so far have come from the millions of dollars Sotheby's spends on branding and market share. My deals have come from my network. Through personal friends and BP! When you are starting out, its the people you know, the people they know and the people you will meet that will be your deals. Granted, I love throwing the Sotheby's name around, It IS very prestigious, but at the end of the day, the high end $10M+ listings may find international buyers easier but I think as long as you have a good connection with SOMEONE where you work, you will have every ability to be an amazing Real Estate Salesperson, at whatever level you chose.
That all being said, I have started to learn about EXP and at this point, I can not find another brokerage that offers as much as EXP does in the way of compensation for the time and work you put into your craft. I have been meeting people left and right at different agencies, who all have the next best thing, Exit, KW, Weichert, ... the list goes on. It seems as though, all of these brokerages are adapting to the new reality of the current technological world we live in. Many are starting to offer caps and 100% compensation, commissions based on recruiting efforts, etc. but in the research I have done, it seems reactionary as opposed to being designed from the very beginning. I think a suitable analogy is electric cars, its the difference between ford coming out with an electric car that is basically a ford festiva with bunch of batteries stuffed in the front seats and the gas fill spout converted for a 110v socket compared to a tesla which was designed from the ground up to function as a sleek electric vehicle that is sexy and beats all records. When the first roadster rolled into the auto show and everyone was like, "whats that, it doesn't make sense, the other "gas" vehicles have much more research and years of testing, they'll never be replaced." They have been refining teslas at exponential rates and now the "old school" auto makers are not able to compete overall. I see EXP doing the same thing in the real estate industry. their business model seems to take the future of this business into account now, and its just a waiting game to when the old style will fall and at that point EXP will be so far ahead, nobody will be able to touch them.
VERY long story short. As many have said in this thread, talk to as many brokers and brokerages as possible, get their offers and compare them. Really know what its going to cost you to be with them. You are the asset, any Brokerage should be thrilled to have you a part of their team, and should want to educate you and help you to be as successful as possible. I would be happy as many people here have said to talk to you further, on the phone, through DM on here, on Facebook, in person, whatever medium you like best to discuss your options or questions.
If you find a better deal that EXP has, I would love to hear it! Please keep me in the loop!
Carlos Pelegrina this has been an interesting thread . Just curious did you make a decision on a brokerage ? Best of luck
I will make this short, I know you have enough info on these companies from our wonderful BP members above. I will tell you Carlos, that I joined KW a little over a year ago after being with 2 other pretty well known companies in our area. Exit and Houlihan Lawrence. My reason for joining was different from others. I wanted to move over from sales to more active investing, besides I've always loved all of Gary Keller's investment books. We started flipping properties in Pa and we decided to become a part of an office out there. We were looking at offices and KW was the largest out there, 2 of their agents sold a couple of our flips. We checked out the Bronx office, which we knew of well, and we really liked what they offered. The training is 2nd to none. The support system in our office is great, our conference rooms for clients are great, and unexpectedly we actually ended our last year strong and started off this year stronger. Plain and simple, I like the models they use and being in the largest offices in the areas of focus is an advantage. This business is ALLLLLL about networking. Why not be where the top listing agents are at, who will likely provide the best deals for your investments? If you want to be in Manhattan, find the top brokerages, maybe some leaning towards investments. It was ideal for our NY sales and Pa investments. We may be getting licensed in Jersey next and be a part of a KW there as well. Good luck buddy! Let us know what you decide.
Just thought I'd chime in. I am currently with KW. I am the team leader for a group of 7 agents. I looked into EXP in great detail. The total money in split didn't make sense for my team. EXP had a per transaction expense after capping. My current per transaction fee is $50 after capping (Which occurs at approximately $2.3M in my area and my agents cap after paying HALF what I pay in). As your sales volume goes up the difference between KW and EXP got smaller and smaller until it actually started going in favor of KW. Now that doesn't take into account stock options EXP provides, but I see that as negligible. Both offer the ability to "sponsor" agents and create an additional income flow. I don't focus on that aspect. I just do my thing and when people ask I point them towards KW. I personally think the KW brand is worth thousands per year. I like not having to explain that I am a realtor when I say I'm with Keller Williams. People hear this and know. My brokerage history is Coldwell Banker < RE/MAX < KW
@Joshua Marriott To your point about the split not making sense for your team, I can put you in touch with Sam Rodriguez, the Regional Director of Growth & Expansion at eXp Realty. The team structure is incentivized in a more compelling way than just a single agent. Each team member pays a much lower yearly cap. If you want to get the full picture, just let me know. It could explode growth for your team.
@Joshua Marriott the gentleman who brought me into EXP came from KW like myself. Actually out of the Woodlands in TX. His name is Rick Raanes. He recently had his one year anniversary with EXP (after being at KW for a decade) and in the last year, with the stock purchase plan and ICON agent awards he's accumulated well over a $100,000 in EXPI stock. I wouldn't call that negligible. On top of that he's received more than $25,000 in revenue share (and is on pace to triple that in the next 12 months) for helping build the brokerage. He came to EXP with a smaller team than the one you currently operate.
As your team grows and you want to expand into different markets, KW will charge you additional caps for expansion whereas EXP does not, and charge you additional fees for tying the groups together. You can expand across state lines with EXP and keep the single cap.
Looking at your history of where you've been, it seems that you've followed all the former No. 1 brokerages here in North America. Coldwell used to be on top, as did Remax. My opinion only a matter of time before KW loses the top spot to a better business model for agents (of which I believe EXP offers). It may very well not be EXP who knocks them off the perch, but history will repeat itself and they will eventually drop. So maybe we will see you as part of the team at some point in the near future when our brand becomes "move valuable"?
I do disagree with that belief though. In the end it's the agent that matters, not the brokerage. The brokerage is tool for the agent to use. You can be great no matter what brokerage you decide to work with. And I will say it again, if EXP didn't exist I'd still be with KW.
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Real Estate Agent NJ (#0897533)
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Hello! I am also biased to KW. I started with them in 2012, left them, went to another brand, and then a boutique and came back to KW. Luckily, I am fully vested with them. I just wanted to post that fees and caps vary from place to place, obviously based on cost of living and housing economy. My Los Angeles/Orange County market center cap is not the same as my Missouri/Kansas cap. Vastly different price points and markets. I am supported by coaches, weekly masterminds, contractors, builders, investors, agents, trainings, staff, lenders, conference rooms, catering, etc. As for an office? I've had it. Don't need it. Our team leader is the President of KCRAR, and I get to see her everyday and get poured into. So is it worth my $80 a month? Absolutely. It's like having a house of Tony Robbins and John Maxwells at my disposal. A higher commission split doesn't mean you're doing more business, nor that your career will last. I have a center to go to to get motivated. Agents from many states to do referral business with, or whose market centers I can use. I love tech and I am personally paperless, but I don't discount the human experience. I love it and need it, some don't.
By the way, my clients are mostly in our in-house lenders or title officers' suite 2 steps away if that, or in a 5 minute conference for pick up and drop off if that. I've had 2-3 since October in the office. It's all about perspective and checking our ego. I've gotten more work done without an office than with an office!
It's really a personal and personality choice. Good luck!
I've been in real estate since 2006 and my wife and I started our brokerage and property management company in 2011. We bought our office in 2013 and have room for about 16-20 desk spaces and 1.5 acres of green space with agent vegetable gardens and outdoor areas to work or just recharge. We are on 70/30 splits with ZERO fees, tiered splits for top performers, tons of software, digital phone system that rings all agent's cell phones at the same time giving everyone equal opportunity to capture leads, online "cookie jar" lead distribution systems, quarterly brokerage sponsored parties for clients and vendors, employee appreciation parties, 3 huge reflective yard signs, open house signs, and lockboxes paid by brokerage, opportunities to mold our systems to whatever we want as soon as we come up with a good idea, but the best part......the feeling of family and support we have for each other despite the competitive nature of the industry. I have never lost a listing or buyer due to not having a nationally recognized brokerage name and in our town most people prefer to support non-franchise small businesses. We are very hands on with our agent training and only take on agents with at least 2 years experience and average of 2 million in sales per year. Top agents close on around 4 million per year with average homes selling for around $200,000. We pay for access to online training but our agents seem to do better with one on one coaching and training. This is just my example of what a small, independent brokerage can offer and really doesn't even scratch the surface. Hope this helps and good luck with your brokerage search!
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Broker Texas (#569472)
- 3Z Realty
Just for the ones wondering what my decision was... EXP was the winner, I am still learning but pretty amazed by the company resources, really overwhelming.
@Carlos Pelegrina - thanks for letting us know, congrats. I am working on getting my real estate license here in California and am trying to choose between KW and EXP. Currently, I work as a Data Engineer at Facebook full-time and invest in real estate on the side.
The two main reasons I want my real estate sales license are:
- MLS access
- Save on commissions
If you don't mind sharing, what were some of the key factors that pushed you toward EXP over KW?
@Kobe Xin - Congratulations on becoming a newly licensed agent. I'd be very interested in connecting with you to learn more about your experience / how you decided on a brokerage. I'll DM you and set up a time for a call.
Cheers
I'm surprised no one recruited anyone from this thread. Lol
Im going to be honest...while an exp agent has been my most loyal as both my agency phase and return to investing current state.
small brokerages...too easy to be a brokers janitor so to speak.
by personal opinion keller williams was better in my case than exp.
ill rank and why?
1. Investing.
Having full creative control of my business and meeting more people both agents and investors...and i solve preforeclosure problems
2. Keller williams.
while it seems they might need to switch to decaf..keller williams dont expect you to be an overnight sensation fully developed.
the support is topnotch, the training is top notch, the brokers demandments are minimal, and everything you ever need or need to know is at ur fingertips.
title, lawyer, funding for clients, etc. all in one building.
and the gatherings were kind of kool during events.
you name it keller williams city view was an experience and i filled in alot of blanks of questions i had for the industry.
the downsides, it can be much like an allinclusive club, and they can frown on investing...theyre alright anyways in my book and will always be my most favorite brokerage to work for.
3. Exp realty
the most ready and willing agents and very investor friendly too.
but for me exp realty texas was a no client militant nightmare. If broker orders...you train and you cant make money during training..and the broker is megaquick to send licenses to austin.
exp realty is a ruff intolerant do it my way or the highway broker..especially if you use youtube.
with that being said they got good passives on recruitment.
maybe something to go for agents later on. But not newbie friendly.
But for me kw was a much better experience. The only thing better was investing.
But the unique thought of exp agents is bar none.
Originally posted by @Anthony Chao:@Carlos Pelegrina - thanks for letting us know, congrats. I am working on getting my real estate license here in California and am trying to choose between KW and EXP. Currently, I work as a Data Engineer at Facebook full-time and invest in real estate on the side.
The two main reasons I want my real estate sales license are:
- MLS access
- Save on commissions
If you don't mind sharing, what were some of the key factors that pushed you toward EXP over KW?
Hey Anthony,
Did you happen to find the right brokerage for you, Exp vs KW? If so, do you mind sharing your experience so far?
I'm in the same boat you were in 4 months ago, I live in CA but having a hard time choosing between Exp and KW.
My two main reasons:
1) MLS access for investing opportunities
2) save on commissions
Thanks in advance,
Jerry
@Carlos Pelegrina
Back to your question...
I’m not so big on branding. I get it’s marketing/business tool, but depending on your clientele it may not matter. Honestly, I don’t feel it should be worth a darn...
I think for a new agent starting out, you need to find a brokerage where the agents have some sort of comraderie and talk. If you are going to learn the trade (even as an investor), there are many facets to the trade that you have the learn. Especially as an investor not doing so many deals (I’m assuming that’s your business model), you are going to need to learn off of “other people’s experiences.” You only get that if you can hang around an office or weekly meetings so you can chat with the other agents. Find out how their deals are going... what were some of their craziest deals... sort of water cooler talk
Not having worked at kw or exp and only knowing their business model by hearsay, I don’t understand how new agents are really on boarded and trained in their models — not looking to re-start the soliloquy’s here. Just saying virtually making sure a new agent is doing all the little things right befuddles me. Maybe you are quite “cultured” from your day job, and hopefully so being that you are in the City. But, with this profession having with such a low barrier to entry I’ve wondered if some agents could have turned out more professional had they had a better “opportunity” to be “shown the ropes.”
.... trying to only provide honest, constructive advice to the OP and not trying to throw any mud, I think there is a reason why ke and exp agents have a generally poor reputation. I’ve seen it in my activities especially when you have to interact with a newbie/young agent. More experienced / transfer agents are different and I’m coming to be able to figure a clue to their work history by their “habits,” in general.
I think another poster said it, “do what you are comfortable.” Especially over an in-line board, I have no idea of your personally and what work environment makes you tick. If you think that the boutique brokerage’s work environment / culture jives with you, go for it. That broker sounds like she is doing her job bringing in leads and make sure her agents are working properly. When I started working as an active agent, I was sort of thrown in the deep end since as an investor I chose to work only certain real estate. Now I have to work whatever fits my clients and handle THEIR problems, which are not the same problems/concerns I worry about. I had things to figure out and makes calls for info/assistance from other agents I met in the office.
I hope my two cents helps. Again, do or try what works best for you. Honestly, if the culture doesn’t work out, you can always move to another brokerage. Don’t forget, it might be the “right culture but wrong people...”
PS. Maybe try the best of “both worlds.” Join the boutique brokerage in the City, and get your NJ license and hang it with kw or exp. see which floats your boat...🤔. Good luck