How to Choose the Right Real Estate Brokerage

Your choice of brokerage significantly impacts your early career success. New agents at brokerages with strong training programs close 40% more transactions in their first year, according to industry studies. Here’s how to evaluate your options and make the right choice.

Types of Brokerages

National Franchise Brokerages

Examples: Keller Williams, RE/MAX, Coldwell Banker, Century 21

Pros:

Brand recognition
Established systems and training
Large referral networks
Technology platforms
Marketing support

Cons:

Franchise fees affect splits
Less flexibility
Can feel corporate
Variable by individual office

Independent Brokerages

Examples: Local and regional firms

Pros:

Often more flexible
Potentially better splits
More personalized attention
Local market focus
Owner-operator culture

Cons:

Less brand recognition
Smaller referral networks
Technology may lag
Training varies widely

Virtual/Cloud Brokerages

Examples: eXp Realty, Real Broker, others

Pros:

High commission splits (80-100%)
Low overhead
Stock/equity opportunities
National platform

Cons:

Less in-person support
Training typically self-directed
May lack local presence
Requires self-motivation

Boutique/Luxury Brokerages

Examples: Compass, Sotheby’s, local luxury firms

Pros:

Premium brand positioning
Luxury market access
Sophisticated marketing
High-end clientele

Cons:

May expect experience
Higher production expectations
Competitive environment
Selective in hiring

Key Factors to Evaluate

1. Training and Mentorship

Critical for new agents. Ask specifically:

What does new agent training include?
How long is the training program?
Is mentorship provided?
What ongoing education is offered?
Are there accountability groups?

Red flags:

“You’ll figure it out”
No formal training program
Training costs extra

2. Commission Split Structure

Common structures:

Model	How It Works	Best For
Traditional split	50/50 to 70/30	New agents needing support
Graduated split	Increases with production	Growing agents
Cap model	Split until cap, then 100%	High producers
Flat fee	Fixed fee per transaction	Very high producers

Calculate true costs:

Commission split percentage
Monthly desk fees
Transaction fees
Technology fees
E&O insurance costs
Marketing contributions

3. Culture and Environment

Assess the office culture:

Do agents collaborate or compete?
Is leadership accessible?
What’s the average agent tenure?
How are successes celebrated?
What’s the office energy like?

Try this: Visit during a busy time and observe interactions.

4. Technology and Tools

Essential tools the brokerage should provide:

CRM system
Transaction management
E-signature platform
Marketing materials
Lead generation tools
Mobile apps

Ask: What’s included vs. additional cost?

5. Lead Generation

Some brokerages provide leads:

Company leads:

How are they distributed?
What’s the quality?
What’s the referral fee?
Are they exclusive?

Lead generation support:

Marketing assistance
Open house policies
Floor time availability
Online presence support

6. Office Location and Facilities

Consider:

Proximity to your target market
Professional meeting spaces
Parking availability
Hours of access
Remote work policies

Questions to Ask

For the Broker/Manager

What does a typical day look like for successful agents here?
What’s your agent retention rate?
How do you help new agents get their first deals?
What sets your brokerage apart from competitors?
What are the minimum production expectations?

For Current Agents

What do you wish you knew before joining?
What’s the best thing about working here?
What could be improved?
Would you recommend this to a new agent?
How accessible is leadership when you need help?

About Costs

What are all the fees I should expect?
How is E&O insurance handled?
Are there monthly minimums?
What marketing costs am I responsible for?
When and how are commissions paid?

Red Flags to Watch

Warning Signs

Vague about costs: Hidden fees usually exist
Pressure to sign quickly: Good brokerages don’t pressure
No training mentioned: You’ll be on your own
High turnover: Ask why agents leave
Negative about competitors: Focus on own strengths
Unrealistic promises: “You’ll make six figures year one”

Due Diligence Steps

Talk to multiple agents at the brokerage
Research online reviews (with skepticism)
Check state records for any violations
Ask about typical time to first transaction
Request a written summary of all costs

Making Your Decision

Prioritization Framework

For new agents, rank these factors:

Training quality (most important)
Culture and support
Mentorship availability
Technology and tools
Commission split (less important initially)

Better training at a lower split typically beats higher split with no support.

Interview Multiple Brokerages

Compare at least 3-5 brokerages:

One national franchise
One local independent
One virtual option
Any others recommended

Trust Your Instincts

After research, trust your gut:

Did you feel welcomed?
Could you see yourself working there?
Did leadership seem genuine?
Did agents seem happy?

Your First Year Matters

The right brokerage can accelerate your career:

Quality training = faster productivity
Mentorship = fewer costly mistakes
Good culture = sustained motivation
Support systems = client retention

Choose for learning, not just earning.

Key Takeaways

Prioritize training and mentorship as a new agent
Understand all costs, not just commission split
Culture matters for long-term satisfaction
Interview multiple brokerages before deciding
Trust your instincts after doing research

Get licensed first, then you can explore brokerage options. Start with our state licensing guides to begin your journey.