Choosing the right real estate brokerage is a key decision for real estate agents.
Choosing the right real estate brokerage is a key decision for real estate agents. By learning about your options and choosing a brokerage that is a good fit for your needs and goals, you can set yourself up for success in your real estate career.
Book a call with a licensed professional to get personalized next steps from someone who has been where you are before.
A real estate brokerage is a company that employs real estate agents. In order to practice real estate, agents must be sponsored by a brokerage, or broker. This is because brokers are licensed by the state and have the necessary knowledge and experience to help agents succeed and stay in compliance with the law.
This is a mutually beneficial relationship. The agent provides the brokerage with a service by completing real estate transactions, and the brokerage provides the agent with support and services that help them be successful.
In return for the brokerage's support, the agent pays the brokerage a commission on each sale. The commission split can vary depending on the brokerage and the agent's experience.
Choosing a brokerage is an important decision for any real estate agent. The brokerage you choose will have a big impact on your career, so it is important to do your research and choose a brokerage that is a good fit for you.
Here are some factors to consider when choosing a brokerage:
Once you have considered these factors, you can start to narrow down your choices. It is a good idea to interview several brokerages before making a decision. This will help you to find the brokerage that is the best fit for you.
Here are some additional tips for choosing a brokerage:
Choosing a brokerage is an important decision. By following the tips above, you can find the brokerage that is the best fit for you with ease. In the next section, we will breakdown the Top 5 Real Estate Brokerages and who they are best for.
RE/MAX is an independently owned and operated franchise brokerage. RE/MAX is one of the largest real estate brands in the United States by transaction volume and offers agents some of the highest splits in the industry at 95%! However, they do charge monthly desk fees which can be quite costly. They typically want experienced agents. Additionally, it offers numerous unique benefits for agents like flexible time-off plans, mental health support, and retirement plans. However, RE/MAX has high monthly fees, and it does not offer as much training or interaction with other agents. Nevertheless, RE/MAX does a great job generating leads for agents through it’s well-known national presence in almost every market in the US. In addition the the commission split, monthly desk fees, you also must pay a 5% franchise fee on every transaction.
If you are looking for a well-established real estate brokerage with high commission splits, great lead generation, and a traditional brokerage model, then RE/MAX is likely the best fit for you.
Year Founded: 1973
Number of Agents: 150,000+
Volume (2022): $660.1 billion
Keller Williams is an independently owned and operated Franchise brokerage. Keller Williams is a large and well-established real estate brand with a national reputation. It is one of the most recognized brands in the industry, with over 180,000 agents. Keller Williams is known for its robust training programs for new agents and its high transaction volume. On the other hand, it also has high brokerage fees making it tougher for new agents to get started. Additionally, the competitive environment can be challenging due to the large number of agents in the brokerage. Each office runs independently which makes each office only as strong as its owners. Not all Keller Williams offices offer the same level of training and opportunities. In addition to monthly fees, commission splits, you also have a 4% franchise fee on transactions.
If you are looking for a traditional real estate brokerage with a comprehensive training program, mentorship from experienced agents, and global brand recognition, then Keller Williams is likely the best fit for you.
Year Founded: 1983
Number of Agents: 180,000+
Volume (2022): $472.9 billion
Century 21 is an independently owned and operated franchise model. Century 21 is another large real estate brokerage with great brand recognition. It offers extensive training for new agents, and there are no desk fees or upfront monthly costs. This can make getting started much more comfortable for new agents. However, Century 21 has high commission splits (50/50 with the brokerage), and it offers limited employee benefits for agents. Additionally, Century 21 agents are expected to generate their own leads. In addition to high commission splits you must also pay a franchise fee of 6% on each transaction.
If you are looking for low start-up costs, comprehensive training, and no desk fees while still working for a large national brand, then Century 21 is likely the best fit for you.
Year Founded: 1971
Number of Agents: 130,000+
Volume (2022): $330 billion
Sotheby’s International Realty is an independently owned and operated franchise model. Sotheby's International Realty has dominated the high-end real estate market for the past 28 years and has a reputation of luxury when it comes to real estate transaction services. Unlike most brokerages, its brand recognition spans globally and features some of the best marketing in Real Estate. Unfortunately, Sotheby's International Realty is extremely selective when it comes to recruiting and prefers experienced agents over new ones. Expect high commission splits and franchise fees on every transaction.
If you are an experienced agent wanting to focus on luxury real estate transactions with top of the line marketing systems, and a competitive work environment, then Sotheby’s International Realty is likely the best fit for you.
Year Founded: 1995
Number of Agents: 1,500+
Volume (2022): $167 Billion
eXp Realty is a cloud-based real estate brokerage that is known for its robust support, outstanding training and technology. It is NOT a franchise. eXp Realty is one brokerage without boundaries everywhere in the US and multiple countries. It is the fastest-growing real estate brokerage in the United States, likely due to its innovative revenue sharing, agent ownership and commission models. Because eXp Realty is cloud based, agents are trained by other mega agents inside of eXp Realty’s metaverse. eXp Realty have very low commission splits and every agent has the ability to cap allowing them to earn 100% commission, earn stock, and share in the revenue. Additionally, eXp Realty operates in all 50 states, as well as numerous other countries and offers license portability for agents who don’t want to be locked into a certain market. License portability gives agents the ability to do Real Estate anywhere with the assistance of a local sponsoring broker. eXp Realty also encourages agents to build their own brand.
It is important to note that eXp Realty is a newer brokerage and has less brand recognition than some of the other brokerages on this list. As a cloud-based brokerage, there are no brick-and-mortar locations, which can be a drawback for some agents.
If you are looking for a real estate brokerage with an innovative business model, attractive splits, license portability, and access to all the technology you will ever need, eXp Realty is likely the best fit for you.
Year Founded: 2009
Number of Agents: 85,000+
Volume (2022): $159.1 billion
Choosing which brokerage to join is a daunting task when starting your real estate career. Perhaps, you’re unsatisfied with your current brokerage and want to test other waters. The truth is, it is really difficult to say which is the best brokerage because all of them have unique pro’s and con’s. The most important question to ask yourself when choosing which brokerage is right for you is: “What are my goals?”. Having a confident grasp on what you are trying to accomplish in your real estate career can help narrow down the options quickly.
The best way to choose a brokerage is by talking to successful real estate agents! Ask them what brokerage they are with and why they chose that brokerage. They can share their experiences and give you insights into the different brokerages in your area.
Book a call with a licensed professional to get personalized next steps from someone who has been there before.
