Top Mistakes New Agents Make When Choosing a Brokerage
agent. The right brokerage can provide you with essential support, training, and exposure,
while the wrong choice might hinder your growth and lead to frustration. Here are five
common mistakes that new agents often make when choosing a brokerage, along with insights
on how to avoid them.
1. Prioritizing Commission Splits Over Support
Many new agents are tempted by high commission splits without considering the overall
support system that a brokerage provides. It's crucial to understand that in the early stages
of your career, access to thorough training, mentorship from experienced agents, and quality
resources will likely have a far greater impact on your long-term success than a slightly higher
split. A supportive brokerage can offer structured onboarding programs, ongoing workshops, and regular feedback sessions that help you refine your skills and grow your business
sustainably.
Look for brokerages that not only offer competitive commission splits but also invest heavily
in agent development. This can include formal training programs, access to sales tools, and a
culture that values continuous improvement. Ensure the brokerage promotes a culture of
learning and mentorship where you can continually grow.
2. Overlooking Cultural Fit
The culture of a brokerage can greatly influence your work satisfaction and professional
growth. An environment that doesn't align with your personal values or work style can be
demotivating and may impede your ability to succeed. The ideal brokerage should feel like a
community where you can foster relationships and receive support, not just a place to hang
your license.
Actively engage with potential brokerages by attending their social events, meetings, or even
shadowing sessions. Talk to current agents about their experiences and observe the
interaction between colleagues. Choose a brokerage that fosters a supportive, collaborative
environment and resonates with your personal values and professional aspirations.
3. Not Researching the Brokerage’s Reputation and Stability
The reputation and financial stability of a brokerage are critical to your security and success
as an agent. Joining a firm with a shaky market reputation or poor financial health can risk
your earnings and professional growth. A reputable brokerage attracts more clients and
listings, which can provide you with more opportunities to learn and earn.
Conduct thorough research by reading online reviews, checking ratings, and speaking to
industry peers. During interviews, ask direct questions about the brokerage’s financial health,
growth trajectory, and strategies for handling market fluctuations. Choosing a stable and
respected brokerage ensures you have a secure platform to launch and sustain your career.
4. Underestimating the Importance of Technology and Resources
In the digital age, the technology and tools provided by a brokerage can dramatically enhance
your efficiency and ability to compete in a fast-paced market. From CRM systems that
manage client interactions to marketing tools that help you create high-quality listings, the
right technology can make a significant difference in your daily operations.
Evaluate the technological offerings during your brokerage visits. Ask for demonstrations of
their CRM and other tools. Ensure the brokerage invests in modern technology and provides
comprehensive training on how to utilize these resources effectively. A brokerage that keeps
pace with technological advancements signifies a commitment to its agents' success.
5. Failing to Understand Contract Terms and Conditions
Many new agents overlook the details of their brokerage contracts, only to find unexpected
clauses about fees, duties, or restrictions later on. This oversight can lead to disputes and
dissatisfaction, affecting your professional relationship and financial outcomes.
Always review your brokerage contract thoroughly before signing. If possible, have it
reviewed by a mentor or legal advisor. Pay particular attention to any clauses regarding
commission splits, desk fees, mandatory participation in events or training, and the
conditions under which the contract can be terminated. Understanding these details upfront
can prevent future conflicts and ensure a mutually beneficial relationship.
Conclusion
Choosing a brokerage is a crucial decision that can significantly impact the trajectory of your
real estate career. By being mindful of these common pitfalls and taking proactive steps to
avoid them, you can select a brokerage that not only enhances your current success but also
supports your long-term career goals.
Are you a new agent looking for a brokerage that offers the right mix of support, culture, and
technology? Contact AMR Real Estate today to learn how our agent-focused approach can
help you avoid these common pitfalls and start your career on the right foot.
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