Friday, September 19, 2014

How Does a New Agent Know Which Broker to Choose?



If you are new to the world of real estate the first thing you need to decide is which broker to work for. This is not as simple as it sounds. In some areas of the country there are many offices both big and small that are willing to take on a new agent. Here are some things to consider if you’re trying to decide where to begin your new career.

Money is not Everything
Although different brokerages do offer a slightly different split on the commission when a home is sold this is not the most important thing to consider when beginning your new career. There are many different services provided by various brokers and being exposed to them is important in the beginning. It’s also clear that the amount of leads available will play a huge role in your earnings. Obviously a very busy office with a lower split will offer much better earning potential than a smaller less busy office with a higher commission per transaction.

It’s also important to enjoy your work. You know what you like and the type of people you like to be around. Choose your work place according to the people and not only the bottom line. Like any other occupation being a real estate agent involves dealing with coworkers and colleagues. The bottom line is the happier that you are the better you will do in your chosen field and money alone can never compensate for a work environment that isn’t suited for you.

Obtaining Your License is Only the Beginning of Your Training
Now that you’re ready to go you will find out soon enough that there’s a lot that you don’t know. The paperwork alone is enough to “drive you batty” and what about the proper way to negotiate with people and follow all of the procedures that your broker will expect of you? Unless you have previous experience in the field this is one occupation where you will really need someone to help you get started on the right foot.

You might want to consider a broker that makes training available in many different areas such as sales and marketing, software and even motivational programs. All of these things are necessary if you are to be successful and going it alone can be a daunting task. Be wise when choosing and make certain that you will have all of the support you will need to ensure your future success.

Factor in Expenses
It’s a common mistake to consider only your commission rate when determining what you can earn as an agent but there are many expenses that come with the job and it will be your responsibility to pay for them. Aside from the obvious daily expenditures such as gassing up your car or paying the cell phone bill every month there may be other expenses that you have not yet considered. Did you know that some offices now charge agents for things such as making copies or select phone services? Do you know if Errors and Omissions Insurance is required where you will be working? Are there other per transaction fees that you will be subject to? You need to know these things before you decide which brokerage is best for your situation.

There are far too many things to consider than I could possibly include here but I can say that these are 3 of the most important things to consider when trying to decide which broker is best for a new agent. I also suggest speaking with an experienced agent in the area you will be working if you have the opportunity. He/She will be able to tell you the “ins and outs” of their particular brokerage and can offer you the guidance you will need to make the right decision. Here is the link to a very useful Excel Expense Form (courtesy of about.com) that should help you to get started. Good luck in your new career and welcome!

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