Whether you are new to real estate or you are just looking to make a change, selecting a brokerage can be stressful. Should you join and independent brokerage? What about a franchised brokerage? What’s the difference? Is there even a right or wrong answer? The answers to these questions can vary slightly depending on your location, but before you make any decisions, consider these questions.
Is a Franchise Brokerage or Independent Brokerage right for you?
First, let’s clear up some key differences between franchise and independent brokerages.
Franchise Brokerages (like Century 21, ReMax, etc):
- Stronger national branding
- More training classes
- More resources available
- Less choice on what tools they can provide for agents
- Higher churn rate (heavy hiring to see which agents stick)
- Part of Broker fees are paid back to franchise
- Lack national branding, but may have strong local branding
- Less training classes, more hands-on and on-the-job training
- Ability to choose tools and resources that are appropriate in local market
- Flexibility to change tools offered as market needs change
- Hire less agents making it more difficult to join
- Broker fees are re-allocated to provide new tools and training for agents
Deciding between a franchise or independent brokerage comes down to what most aligns with your current goals as an agent. As a newer agent you may be drawn to the national recognition that a franchise brokerage gets. As a more experienced agent, you may be drawn to the individuality of an independent brokerage. There is no right or wrong answer, but starting with this question helps decrease the number of brokerages you have to look in to.
What’s your personality?
Before changing brokerages or starting a new real estate career with one, it’s important to understand your personality, specifically your strengths and weaknesses. The #1 Best Seller, Strengths Finder book is a great way to do just that. It takes you through a series of questions and delivers you with specific strengths areas and weak areas. Are you analytical? Futuristic? A learner? A maximizer? Once you have a better understanding of your strengths and weaknesses, seek out Brokers and companies that complement your strengths and play to your weaknesses.
How important is culture to you?
In today’s age, company culture has become a hot topic in how people decide whether or not they want to work somewhere. This is not to say that culture was not important before, but it has quickly become a “must-have” versus a “might-have” discussion.
Company culture can be divided into 3 areas:
- Professional development
- Social activities
If you are the type of person who prefers to work alone or mostly with clients rather than engage with people in your company, culture might not be important to you. Companies who focus on culture have a belief in the “bottom up” approach – meaning they are only as good as their employees are. Before choosing a brokerage, it’s important to decide how important company culture is to you.
What were some deciding factors when you chose your current brokerage? How did you make the decision? Let us know in the comments below!