3 Mistakes Agents Make When Choosing a Brokerage

What I Learned From Being With 5 Brokers in New York City

Switching brokerages is a real pain – I know from experience. You have to deal with the timings of your current deals and whether you get to take the clients with you; updating contact information and profiles; informing everyone you know; getting new business cards…  And that’s before you learn the systems and procedures at your new brokerage. It’s a lot.

They say over 80% of agents fail in the first 2 years, and often it’s because they chose the wrong brokerage. After being with 5 different brokers, I learned there is no one “right” brokerage. They all have their pros and cons.

The secret is to find the brokerage right for you and where you are in your business. You need different things at different points in your business. When you are starting out, you need to focus on training.  Once you have more experience, a marketing department and commission splits may play a more important role. It’s normal to be with 2 or 3 different brokerages over the course of your career, but you still need to choose wisely – especially if you are just starting out.

Learn from my experience and avoid the 3 Biggest Mistakes Agents Make When Choosing a Broker

Mistake #1- Not evaluating your own needs

You have to figure out your strengths and weaknesses. What do you need most from a broker? If it’s training, how do you learn best? In a structured environment? 1 on 1? Do you thrive on your own, or work best as part of a team?

What about your finances? Being an agent is being a business owner. How much time and money do you have to invest in your business? How long do you have before you must have income from real estate?

 What kind of resources do you need? An office space to work and meet clients? An accountability coach? Marketing department? These are all things that you can find at brokerages or outside on your own, but know your own needs before deciding.

Mistake #2-Making commission split your main priority.

If you are a new agent, or in need of training or support, you can worry about commission split later. 50% of something is better than 100% of nothing.

Evaluate the fees and splits in relation to what you receive. All business owners have expenses. Does the broker offer leads? What about marketing services? Do you get virtual staging or coaching? Office support or meeting rooms? These are all valuable items and services. Weigh what you get in exchange for the fees and commission split. 60% at a brokerage who offers a lot of services or supplies may be a better deal than 80% at a brokerage that offers you little.

Mistake #3-Letting brokers interview you.

You are not interviewing for a job. You are deciding where to open and build your business. The broker interview should be about what they can offer to help you thrive.

Go back to your self-evaluation – what is it that you need to succeed? Training? Deal support? Marketing help? Access to technology and systems? The more thorough your self-evaluation, the better you can interview brokers to see which would be the best place to build your business.

Bottom Line

The biggest mistake you can make when choosing a brokerage is to act like you are exactly the same as every other agent. The best brokerage for someone else won’t be the best brokerage for you. Interviewing a broker should be about finding the right fit for your needs.

Figuring out how to match your needs with the right broker can be difficult. I created a guide to help you through each step and choose the right brokerage. It helps you figure out your needs, explains the different types of brokerages in NYC and their pros and cons, and teaches you how to interview brokers. It even includes a list of questions you should ask every broker, and ready-made spreadsheets to help you compare costs and services. Learn more and download the guide HERE.

If you have any questions or need more help, feel free to email me at [email protected] or schedule a free zoom strategy session with me HERE.