Hi, I'm currently an agent for a popular brokerage in my city but I'm interested in leaving the brokerage and signing up with a new one. But I was unsure how that process works. Should I sign up for the new brokerage and if I get approved do I then inform the other brokerage that I'll be leaving or leave the other brokerage and then apply for the new one? Im in Florida. Thanks in advance for the feedback.
- 1) Review the policies and procedures with your current brokerage before you do anything, and/or your Independent Contractor Agreement. Understand what they say about leaving the company, and how existing business is handled when you do.
- 2) Do you have pending sales or active listings?
- If so, know what they are worth to you in terms of commission dollars.
- If so, know the company's policy on transferring them to the new brokerage. The listing usually belongs to the brokerage, not the broker, but many companies will allow you to transfer the listing to the new company, with permission from your client first. Sales that are already under contract can be tricky because you usually can't transfer a sale that is already under contract to a different brokerage. That means the old brokerage will be responsible for finishing it out, depending on the stage it's at. Some will still honor your commission split; others will keep a larger % depending on the work left to do, and I've heard of some that will only pay the agent a referral fee.
- 3) Work with the new brokerage, once you've committed to working there, to prepare for the move and transfer of any existing business. This might include having business cards ready, an announcement to your clients, signs for your listings, paperwork for transferring your license ready, and if you are transferring existing business, be prepared to explain to those customers the value or benefit to them when you make the move.
- 4) Prepare to notify the current brokerage that you are leaving, and be prepared to leave quickly when you do. Unlike most employers that expect 2-3 weeks notice when leaving, real estate firms will usually want you out of sight right away when you give them the news. This prevents you from spreading the news around the office and recruiting others to join you in your departure.
- 5) Notify clients as soon as you've told the brokerage that you are leaving. Explain how the move may benefit them. It's easy for us to talk about all the reasons why we want to switch brokerages and how the move benefits us, but focus on the benefit or value added to the customer's experience.
Timing a move can be tricky, and for the new company you are moving to, "now" is always the best time to do it There is never a perfect time, but if you are busy with a bunch of customers and have a lot on the line, moving to a new company at the same time can be chaotic and frustrating, including for your clients.
Thanks for your response. Helps alot.