How to Find the Best Brokerage for You

Before applying for your Colorado real estate license, you’ll need to join a brokerage. This is one of the most important decisions you’ll make as a new real estate agent, as it will set the tone of your new business for years to come. For this reason, it’s critical to choose your brokerage wisely.

Don’t simply choose the first brokerage you reach out to. Instead, do your research and narrow down your options to a handful of brokerages that align with your goals and priorities. Then, take the time to interview each brokerage to determine which one will provide the framework and support to best set you up for success.

The following discussion will help you understand the nuances of choosing a brokerage.

Types of Brokerages

There are many types of brokerages you can join. Each has its pros and cons. Make sure you understand the difference between each type of brokerage to determine which option is best for your specific needs.

National Franchise Brokerages

National brokerages are large companies that license the rights to use their name, branding and business model to individual franchisees. These national companies also charge the individual brokers a set percentage for every deal closed by their office. While these individual franchise offices are independently owned, they follow the rules and regulations established by the national company.

You’ll most likely recognize the names of many national franchise brokerages, as they have branches in most major markets around the country. Some common examples include Keller Williams and Coldwell Banker.

Advantages of a national franchise brokerage include:

• Nationally recognized branding and reputation, which lends credibility to new agents who are trying to get established
• In-house training classes and mentoring programs available to all agents
• Access to established marketing systems and technology to help get your business up and running

Drawbacks of these brokerages include:

• Cost – The franchise fee, support programs and systems are not free, and the expenses associated with a national franchise are often higher than a smaller, locally owned brokerage

This option may be right for you if you:

• Prefer to have national brand credibility to help you build your own brand and reputation
• For most new agents, training and mentoring programs are essential for success

Local (Boutique) Brokerages

Local brokerages, often called boutique brokerages, are smaller offices that are typically owned by a single broker. While these local brokerages are smaller in size, they still provide the ability for significant sales (and therefore earning) potential.

Advantages of local brokerages include:

• No national franchise fees
• Commission programs are often more favorable to agent
• Desirable for those who prefer being a part of a small group
• Access to training often provided by local realtor association

Drawbacks of these brokerages include:

• Less name recognition
• Potentially fewer networking opportunities
• In-house training and mentoring are often informal and based on developing relationships with experienced agents and the employing broker
• More variability in your access to advanced, enterprise-level technology than is typically found in national brokerages

This option may be right for you if you:

• Prefer having a greater level of interaction with ownership
• Desire close-knit relationships with colleagues
• Prioritize the benefit of lessor expenses over the benefit of formal training programs and support

Real Estate Teams

The third option is to join a real estate team. These are led by an experienced, successful agent and are generally supported by other agents. While these teams are generally associated with either a national or local brokerage, they provide a different type of experience than simply working for one of these brokerages without being part of a real estate team.

Advantages of real estate teams include:

• Access to a larger number of leads allowing you to start earning money faster
• Excellent way to learn how to build a successful real estate practice

The primary drawbacks of real estate teams relate to the fact that you’re building someone else’s business. Many teams are created by super agents to expand their reach. It’s a good place to learn the business from someone successful, but it comes with the following caveats:

• You’ll receive a smaller share in the commission generated from your deals
• The clients belong to the team, not you. If you leave the team, you need to rebuild your client list and have no rights to their future business

This option may be right for you if you:

• Need to start earning money right away and can’t wait until you start generating your own commissions
• Would like to learn from seasoned agents within an established practice
• Are willing to trade time spent building your own brand for an increase in knowledge and experience

Mentoring and Training

One of the most critical success factors impacting new agents involves the mentoring and training provided by their brokerage. While we discussed these items in general terms in association with the different types of brokerages, the important role they play in your success also makes it necessary to discuss these items on their own as well.

Mentoring

As a new real estate agent, it’s important to have a more experienced agent who has a vested interest in your growth and success, and who will be with you every step of the way as you complete your first few transactions. In general, this mentoring will come with a cost – either a per-transaction charge or a percentage of the commission for the transaction. However, this cost is well worth it, as proper mentoring will ensure you learn how to complete transactions properly and set you on a path to building a successful real estate business.

In addition to asking a brokerage whether they provide you with a mentor, you will also want to meet your mentor prior to joining the brokerage. This is important since not all mentors will provide comparable levels of guidance and support. When you meet with your mentor, make sure to ask the following questions:

• How available will they be?
• What is their plan for helping you?
• What are the expectations for their service?
• What is their compensation for their assistance?

You should also evaluate a few other important factors that will determine whether they will be an effective mentor to you:

• Nurturing personality – You want to work with someone who is genuinely interested in helping you learn and grow, not someone who is mentoring you just to receive a little extra money.
• Personality fit – How do you see yourself getting along with this person? Do you think their approach will align with your learning style? You’re going to spend a lot of time with your mentor, so personality fit is very important.

Training

There are certain basic skills you’ll need to learn as a new real estate agent, such as:

• How to acquire clients
• How to answer client questions and objections
• How to negotiate
• How to evaluate someone’s property
• How to list a property for sale
• How to put together contracts

Make sure the brokerage you work with has a process for training their new agents on how to perform these tasks. In addition, you’ll want to know what kind of ongoing training is provided to ensure you’re always able to remain current on how to use the latest technology being adopted throughout the industry.

When researching potential brokerages, ask if you can sit in on a training class to get a sense of how the process works. Keep in mind that training doesn’t have to be done in-house to be effective. There are many ways a brokerage can provide this training. The important thing is to make sure their method is a good fit for your learning style.

Colorado Real Estate School Can Set You Up for Success as a New Agent

If you’re considering a career in real estate, Colorado Real Estate School can help set you up for ongoing success. Our online real estate classes will provide all the information you need to pass your Colorado real estate exam, and you’ll build a foundation of knowledge necessary to thrive as you start your new career.

With our online real estate courses, you have the ability to move through the materials at your own pace, making it easier to fit your classes into a busy life. All of our courses are developed by local, licensed real estate professionals, ensuring you’re receiving the most up-to-date information regarding the latest trends impacting the real estate industry in Colorado. In addition, our VideoConnect Success Learning System™ contains the largest library of video content available and delivers an authentic classroom experience from the comfort of your own home.

At Colorado Real Estate School, we’re committed to making sure you have all the tools and assistance you need to pass your real estate exam. Our real estate exam prep courses provide additional support to ensure you’re ready to ace your real estate exam. But if for any reason you don’t pass the exam on your first try, our TruSupport Pass Guarantee™ will make good on our commitment to your success.

With our exclusive guarantee, you’ll have extended access to all course materials. In addition, our team will review your exam results with you to ensure you understand the areas where you need additional assistance. We’ll then work with you to develop a personalized test success plan to improve your results the next time you take the exam.

Contact us today to learn more about our online real estate courses.