Real Estate Best Practices of 2019
The real estate industry is a highly competitive field. Clients are usually offered multitudes of options among brokerages from national real estate franchises to large regional privately-owned and small boutique brokerages. Within recent years, the landscape for the brokerage industry has allowed for more options for real estate agents. While this is beneficial for agents, it can get a little bit confusing, especially in picking out the right brokerage to match your industry goals. This episode, our host Robert Newman and Jonathan shares some clear advice on what might be the best option for parties involved.
New Changes in the Online Real Estate Market
Recently, considerable turmoil has shaken up the real estate industry. The main reason is that Compass has started making attractive and very aggressive offers to industry brokers. On top of the regular fees and commissions, Compass now offers stock in their company as part of their compensation packages for top real estate brokers. Such an offer to work under a public company compared to working independently. For big real estate firms like Compass, they produce enough leads that they can hand out the leads to recruits or junior agents because they have a whole team doing online marketing. One of the widely infamous companies that can do precisely that is Keller Williams, and they were able to do so because they properly segmented their business into different teams. Following a structured model are companies: Re/Max, Century 21, Coldwell Banker Realty, Sotheby’s International Realty, and Redfin.
Starting a Brokerage
Moving to a company as an independent broker poses a couple of dilemmas for agents. First off, would you want to sell your brand or move your brand over to a significant brokerage? For agents, the main problem is choosing between a small independent broker or other major national chains. New agents are recommended to work under brands that have proven themselves in recent years and can provide strong internal mentoring and training structure. It’s a different story for the more experienced agents. Senior agents that have previously jumped ship ended up bailing out because fundamentally they don’t like the commission structure these companies provide. Independent brokers, however, have a lot of flexibility with how their splits work might be the right person for you to approach. But of course, no matter which company or brokerage you choose, you need to examine your option for making more commission. If you’re generating a ton of sales, why wouldn’t you take a look at other options for a better split?
National Brand vs Local Firms
Working for a national brand versus local firms is wildly different. Just because national brands sound more exciting, not all companies can provide you with the tools and skills you’d like to learn nor the commission you would’ve wanted. It’s best to evaluate your goals as a realtor or broker in terms of career growth and the path you’d like to carve out for yourself. For more informative discussions on the real estate industry, visit Mail-right.com weekly for fresh episodes.