Why Do Real Estate Agents Switch Brokers?
An analysis of how to choose a broker.
According to the National Association of Realtors, an agent’s median tenure at their brokerage firm is only five years (Source: nar.realtor, Quick Real Estate Statistics).
Why would a sales agent want or need to switch brokers? Let’s review some key factors.
Training
When you become a real estate agent, you need a lot of support to ensure a successful transition into the industry. “New agents likely put more emphasis on the training aspect, especially when choosing the brokerage to house their brand new real estate license,” explains Michael DiSchiavi of EXP Realty BKNY.
Although professional guidance is a crucial benefit for new or less experienced agents, it will become less critical. “As I started to get up to speed, the training opportunities dwindled,” says AJ Chinn of Phenomenal Homes with AJ Chinn | Platinum Realty, LLC. It becomes a challenging situation when the broker doesn’t offer fresh content for all experience levels.
Johnny Richardson of The Richardson Group at EXP Realty, LLC adds, “[i]t’s okay to make a switch in a real estate company, especially when you have met your max capacity, and you aren’t learning any more or adjusting to growing in the business.” Sometimes it’s no longer a good fit.
Compensation
As with any other job, you need to pay close attention to your compensation rate. While working under a broker, you won’t receive the full commission. So you’ll want to calculate your take-home pay to determine how much you can expect to earn.
Most agents share their revenue via a commission split, a transaction fee, a monthly desk fee — or all three. “Seasoned agents are much more likely to put emphasis on compensation (commission split, overrides for recruiting new agents, revenue share, etc),” DiSchiavi says. It’s one reason agents consider transferring their license.
Chinn describes his experience, ‘I was only taking home about 65% of the commission, and this started to add up quickly. Also, I was paying a rather large monthly “desk fee” that started to feel unwarranted especially when COVID hit and agents were no longer going into the office.’ Your business finances play an essential role in your decision-making.
Resources
Technology, marketing, and brand recognition are other aspects to consider when you choose a real estate brokerage.
User-friendly apps, IDX portals, and websites provide the best agent-client experience. You also want access to appealing marketing templates for business cards, postcards, and flyers. Established brokerages require their agents to use an approved kit for uniformity.
Brokers with brand recognition often get more leads as opposed to lesser-known brokerages. Like other industries, clients opt for highly reputable or recognizable service providers. While smaller brokerages may use low-cost models, they may not get the same volume of calls and emails from prospective leads. These are all factors to consider before hanging your license with a new broker.
Ready to end all the high fees as an active sales associate or broker associate? Go to Park My License℠ to take a “pause” from your real estate career. We offer our referral agents 90/10 commission splits and continuing education credit hours.
Not ready to park your license? Earn $25 when agents sign up for our paid membership. Join our affiliate commission program to get a unique affiliate link.
