If you’re a beginner real estate agent, working at a real estate company or with a real estate broker is a great idea. Brokers provide beginning real estate agents with invaluable experience into the world of real estate. Brokers are not going anywhere too; the vast majority of real estate investors refer to brokers and real estate agents when purchasing or selling a rental property. These pros are great, but there are some cons to consider. The most obvious one is commission splits, which might seem unfair on the surface. And in reality, some real estate brokers may have unfair policies towards commission splits. That leads us to the question: What is the best real estate company to work for?
Related: How Much Do Real Estate Agents Make?
The answer, unfortunately, is not crystal-clear. Some national brokers, for instance, have many offices around the country, but the offices near you many not fare well. The brand name certainly helps when looking for the best real estate company to work for, but it does not give the full picture. To get that, you will need to research the broker and determine if it is the best company that suits you as a new real estate agent. To help you through this decision, we’ve compiled some vital guiding points to consider.
-
Commission Split
How much you will get paid is a driving force when looking for any job. This is especially true when looking for the best real estate company to work for as an agent. That’s because real estate agents tend not to receive all the money they generate by selling rental properties. Instead, part of the agent’s earnings is divided in what’s called a commission split.
Splits will vary from broker to broker, but for beginners, the split tends to be a 60/40 one, with the broker receiving the 60%. Some real estate brokers allow for a 50/50 split, especially once the agent becomes experienced. Be sure to check out a broker’s commission split plan when considering the best real estate company to work for.
Some point to commission splits as a reason to avoid working for a broker in the real estate business. While pay is vital, it is not the only thing to consider when looking for a job position. Many other aspects, as will be mentioned soon, influence satisfaction at a job. After all, would you accept a 50 dollar per hour job at a company if it was the worst one in the world? Probably not.
-
Mentoring and Training
Sometimes, when commission splits are low, it is because there are plenty of services provided to agents. One such service is mentoring and training. When searching for the best real estate company to work for, find out if it provides a training program for beginning real estate agents.
If the broker does not offer training, it is probably best to not consider working there, especially if you are a beginner. If a training program is offered, ask about it. Is the program in the form of interactive classes or simply a guidebook? Are the courses in person or online? How much do they cost (if the training is not covered by commission splits)?
Aside from real estate courses, find out how the brokers themselves will offer you real-world experience early on. Participating in a property for sale deal is different from just learning about it. See how the company decides to train its agents.
-
Office and Fees
Adding on to how commission splits are used, ask if other expenses are covered. Along with training services, some brokers use commission splits for office expenses and other fees. Some real estate brokers who have high commission splits require agents to pay from their pockets for expenses which are typically covered by the split.
Also consider the agents’ offices when looking for the best real estate company to work for. See if offices are meant for individual agents or groups of agents. You could even ask to tour the company and its offices to get a vibe of what you might deal with. This detail might be nitty-gritty, but these offices will become your workplace, so it’s important to feel comfortable in them.
-
Modern Technology
Adding to the role of offices is technology. General rule of thumb, avoid brokers who are using dinosaur-aged technology. Again, by visiting the company, you can understand what type of technology is available and how it is used.
-
Broker’s Success
Another factor to consider when looking for the best real estate company to work for is its success. There are two ways of doing this: asking clients and other agents (to be discussed) and reviewing the company’s listings.
There’s not much to reviewing the broker’s investment properties listings. A simple drive around the neighborhood can reveal more than you expect. See which company has the most listings in your area. That can point to a sign of success.
Related: Top 5 Sources for Your Rental Property Search
-
Reviews from Clients and Agents
While the number of property listings is important, keep this in mind when looking for the best real estate company to work for: quality over quantity. It doesn’t matter that much if the broker has many properties all over the place. If clients are not satisfied with this real estate company, it is not worth joining it.
For a more in-depth analysis of a brokerage, consider discussing its work with its current or previous agents. These agents will obviously have closer links and experiences with the company. Therefore, they can serve as great sources of information.
-
Company Culture
The final, and one of the most important aspects when looking for the best real estate company to work for, is its culture. Who would you rather be surrounded by: deadpan zombies who can’t wait to leave the office as soon as they enter it or passionate real estate salespersons who can’t wait to find an income property deal?
Related: How is real estate investing fun?
Talking with real estate agents will once again serve a purpose. Be slightly skeptical in what you hear however. Agents, whether current or previous, might hold subjective opinions when discussing a company’s culture. Thus, it’s best if you go and see things yourself. A tour around the company will unravel a lot about its culture.
Are you a real estate agent? What is the best real estate company to work for, based off your experience? Be sure to let us know in the comments below!
Meanwhile, keep following Mashvisor for the best advice on the real estate business.
