Real estate brokerages and how they differ. Part deux.

Welcome back. In our previous article, we shared the differences in regards to ownership and brokers within a real estate brokerage. As mentioned most brokerages are 1 to 2 "man" shops. Numerous other brokerages are national franchises and in order to make ends meet, the owner must be the broker as well. Profitable brokerages may have a "non-competing" broker. That is a broker who is not in "competition" with the realtors within that brokerage.

Brokerages differ in a few ways, costs, commission splits, and benefits. Costs range from no monthly fees to thousands of dollars per month. Commission splits vary widely. You name it, that split or sharing of commission between the broker and the realtor exists in numerous ways. Finally, benefits, meaning tools, leads, training. Given the competitiveness of a real estate brokerage, realtors cannot expect bells and whistles, tools, and technology from brokerages that charge low monthly fees. But at the same time, high monthly fees do not equate to lots of bells and whistles, those fees just may be paying for the owner's overhead.

So why do agents join a certain brokerage? There are many reasons, location, commission splits, fees, training, a fellow agent referral, and many others. But what really matters in the long run? With my experience, seasoned realtors care about 2 things, support, and commission split. New agents need training and that's what they should be searching for in a brokerage. Ask realtors within the brokerage what the pros and cons are of that brokerage. There may not be the perfect fit for every realtor, so make a checklist and look at that list objectively. Comparing brokerages to brokerages, a fair comparison will show the realtor that a fair split, low costs, great tools are a good start. If a brokerage offers more than that, those are bonuses. As always when there is a problem within the real estate world, I most likely have the solution and this dilemma for realtors is no different. Looking for the best of all worlds, I have the solution. Reach out to me and my business partners and the team of real estate service providers for solutions to every problem because we are solution-oriented.