5 min read · October 29, 2022
Every real estate agent has to have a broker. The broker serves as a guide to help you navigate your responsibilities in your real estate agent career.
But, choosing a broker sponsorship should be your choice. The relationship should benefit you, not discourage you.
To get the best broker sponsorship, you have to choose the right broker. Keep reading to learn everything you need to know about your broker sponsorship and what it should look like.
First, you must understand the differences between agents vs brokers vs realtors.
All real estate agents must have a professional license. With this license, they can help people buy or sell properties.
Before obtaining their license, real estate agents have to complete several hours of prelicensure training. The exact number of hours depends on the state in which they are getting their license.
After their training is done, the trainee will take a written licensure exam that contains federal real estate laws, general real estate principles, and state-specific real estate laws.
Once they pass this exam, they will earn the title “real estate agent.” From there, they can join a brokerage and start helping buyers and sellers.
All realtors are real estate agents, but not all real estate agents are realtors. Realtors are licensed agents that are members of the National Association of Realtors. This means that they follow a high code of ethics through their practice.
A real estate broker has taken the extra step by taking and passing the broker’s license exam. This exam covers more in-depth information than what’s in traditional real estate classes.
Brokers collect extra experience and knowledge before gaining their title.
Real estate agents work under brokers because brokers have this extra knowledge and experience. It’s like a coat of protection both legally and socially.
As a real estate agent, you can depend on your broker sponsorship to help you in various ways.
To have a successful and fulfilling real estate agent career, you need to have a good relationship with your broker. Whether you choose to get your broker’s license or not, your broker should serve as a mentor.
There are a few considerations you should make before choosing your broker sponsorship.
Commission splits are going to be different depending on the brokerage you join. Sometimes, these commission splits are percentages of sales while others may depend on the amount of support you needed from your broker during the transaction.
Commission splits are important as they affect your earning potential. A low commission split can ruin your income. And, it can make selling real estate unfulfilling.
Before joining one brokerage, you should consider what different brokerages around you are offering. Think about what kind of income you’re looking for at this stage in your real estate agent career.
Shop around for the best commission and factor this into your final decision.
Your broker should act as a mentor throughout your career. They should help you further your real estate career.
They may offer training programs, education opportunities, and more to help you perform better. This is on top of the support you’d receive on a daily basis as your broker helps you with clients’ needs.
Before committing to a brokerage, you should ask about the structure of the organization.
Is there one person you should go to or can you go to any broker? Is there someone who’s willing to take you under as a mentor or are you going to have to fight for support?
You should also consider what kind of online systems they’re using. This can help you determine whether you need to bring on properties and clients yourself.
If so, you should ask yourself if you’re okay with having that much responsibility. Are you able to bring your own clients or would you rather the broker take care of that?
Lastly, consider the amount of commission you’d get compared to the support you’d get. If you have a low commission, you should get more support from the brokers.
The reputation of a brokerage matters. If you enter into a broker sponsorship, your name is still important.
If the brokerage has a poor reputation, that could follow you in your career.
Additionally, you should consider whether your broker is involved in the community. Having these relationships is beneficial in gaining new clients, which you’ll need throughout your career.
Sometimes, real estate agents have to pay various fees while they work with a broker. This may include the following:
You should consider these costs as you consider your potential income. If your commission isn’t much higher than the fees you’d be paying, you may need to consider another broker sponsorship.
Think about how much money you’d have to make for the brokerage to pay for the fees.
Each organization, including brokerages, should have clear values and beliefs. Overall, these values and beliefs should match yours.
If the organization has stances that you don’t want to be associated with, you shouldn’t be a real estate agent with that brokerage. Remember, your name matters in the company. Anything related to the company will get passed on to you.
As you’re thinking about values, you should ask what kind of community service the brokerage does. Great brokerages stay in touch with their community through communication and service.
If the brokerage isn’t involved with the community, this may be a red flag.
The broker sponsorship is vital to creating a successful real estate career. That’s why you need to take your time finding the best relationship for your needs.
If you’re currently in a bad broker relationship, it’s time to change things up. When you’re ready, check out our realtor sponsorships. We offer a wide variety of choices for all personalities and needs.
Get started today!