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How to Choose the Right Real Estate Broker
These days, with real estate rapidly becoming the buzzword, an increasing number of people are turning towards real estate as a lucrative career option. Looking for a suitable real estate broker to work for becomes an uphill task for the real estate agents.
The agents need to keep in mind that even though working for a broker, they themselves are independent contractors owning a business. Hence for the agents, success in their venture depends solely upon them & not upon the broker. Nevertheless, the broker needs to be well suited to the requirements of the agent.
A majority of the new agents require mentoring & training in contracts, negotiations and procedures prevailing in their market area. But for training in marketing, sales or motivational stuff, the needs of one agent could differ greatly from those of the others. And this again is a major factor in choosing a knowledgeable broker. Generally this training incurs a cost. It could translate into a temporarily lower split or a per-transaction percentage. The new agents need to determine their own requirements in this area and accordingly arrive on the most suited broker/ brokerage.
Many of the new real estate agents think that selecting a real estate broker basically hinges on commission splits. However, the final take home income for a real estate agent depends upon a number of different services offered by the brokers. A lower split with good leads & sizable service fees could go a long way.
Tricks of the Trade
A good practice is to first determine one’s own expenses so as to know what is needed for income, based on personal expenses and projected new venture expenses. This will provide a fair idea of how much is needed to decently survive and propel the new business forward. Then one can compare brokers/ brokerage houses to measure the commission splits & other potential income sources to make a selection.
It always helps to go for a broker who provides a good online and/ or print media exposure. However, a long association with a broker could mean dependence. Ideally, the agent should focus on making the most of the exposure offered and build his/ her own online presence. This way, the agents can associate with a number of brokers & benefit from them, developing their own business in the process.
The lead referrals from the broker should be compared with a prospect Income Funnel Approach. Using this approach, the agent needs to gather information regarding leads & prospects from the real estate broker. He/ she could then use these estimates to fill in the funnel sheet to find out the final income. While filling this sheet, the office & incidental expenses, and those incurred for phone services are not to be missed. Another thing to ensure is that the agent himself/ herself is a determinant in what the broker charges him/ her for the above said items along with any other charges.