How to find a broker to sponsor you

As a licensed real estate agent your next step is to find a broker to sponsor you. A real estate agent must practice and conduct brokerage services under their sponsoring broker only. Brokerages for the most part are always looking to hire and recruit new agents. However, it is important for the agent to choose a company that will best assist in their overall development as a new professional in this industry.

National Chain Versus a Boutique Brokerage

There can be plenty of advantages for a new agent who chooses to hang their license with a larger and more well-known firm such as Coldwell Banker or Century 21. National chains provide a new agent with name and brand recognition. In an industry that relies on marketing, this recognition can help the agent generate sales leads.  Larger brokerages can also provide access to better training materials and classes. A downside to working in a larger firm is that there is much more competition for floor time and often less individual one on one mentorship.

Boutique firms are much smaller offices and tend to specialize in one specific area or a more localized market. Less agents in the office leaves more time for hands on training, which can be very important to a new agent who does not have much industry experience. Smaller brokerages tend to lack in access to advertising resources in comparison to those available at a larger brokerage.

 Choosing your Area

It’s not a bad idea to begin the search for a brokerage closest to home. There is a nice convenience factor of being close to the office especially for those last-minute appointments and client meetings. Driving by local brokerages allows an agent to get a better feel for the area, office environment or parking situation. Visiting the different brokerages to collect hiring printouts or to speak to active agents in the office can help provide new agents with a more thorough insight of the company and its values.

Interviewing with a Managing Broker

Now that the agent has narrowed down their search of various companies, it is time to set up meetings and interviews. Calling an office and setting up an interview is the easy part. These interviews can be more complex because it is not simply one sided. Brokerages want to know that their new hires will be a good fit for their business model, but newly licensed agents also need to have their questions addressed to ensure that the company will be a good fit for them also.

A few questions a new agent should keep in mind while interviewing is:

1. Commission –

   Does the company charge a desk fee or offer a commission split? A desk fee is a set monthly fee that some offices require each agent to pay regardless of their production. A commission split is an agreed upon percentage of every closed deal the agent agrees to share with the company. A typical commission split is 60/40 (agent/brokerage).

2. Training Plan –

   What kind of programs and resources does the company provide new hires with? Do they provide hands on training or offer individual mentorship by pairing a new agent with an experienced agent?

3. Marketing Plan –

   Does the company offer a certain annual budget per agent for marketing themselves and company? What resources are available to assist the agent with promoting their listings?

4. MLS –

   Is the office MLS affiliated? The multiple listings service is a huge database of home listings exclusively available to agents. There is an annual fee that agents will have to pay to utilize this service. All MLS affiliated offices require active agents to apply for a new membership.

5. Benefits Package –

   What types of benefits are allotted to an agent as an employee (or independent contractor) with the company? This can vary from company to company and can help clarify the agent’s obligations to the company and vice versa.

Most newly licensed agents will switch companies at some point in their first year. This is not a bad decision. It gives the agent a chance to work in different real estate offices and environments. This inevitably helps the agent narrow down and select an area to specialize in the industry.

As a new Real Estate Salesperson, you will need to work under a “sponsoring broker.” The brokerage you choose to align yourself with will be the foundation of your new business, providing you with ongoing mentor-ship and the backing of it’s excellent community reputation. Here are 5 key characteristics of a good sponsoring broker, you should look for:

1. Commission Split Commission split percentages differ from broker to broker. Although this is important, remember not to base your entire decision off commission split. There are many other factors to consider. That being said, commission splits affect earning potential, making it an important factor. Make sure to be aware of what commission you should expect from your real estate sales.

2. Mentor-ship and Support As a new agent running their own business, you will need support and mentor-ship. Some brokerages have training and education programs that can help you start your new career. Ask about the structure and frequency of these programs. As with anything you are new to, it is responsible to set yourself up with the proper guidance. Make sure there is someone who is willing and able to answer your questions. Additionally, what systems does the brokerage use? What MLS Technology are they using? Does their brokerage business model take advantage of online platforms? Does the brokerage provide you with leads? Or, are you responsible for generating your own leads.

3. Reputation It is beneficial to select a brokerage that has a good standing with the community. You will want to align yourself with a broker who the community trusts and who is actively involved in the community. Ask yourself if you were buying or selling a home, would you want this brokerage to handle the transaction? Your broker should be actively involved in the market. An active broker is usually up to date on the market, neighborhoods, strategies, and technology.

4. Fees, Advertising and Other Costs Ask your potential broker what are the monthly office fees (phone line, copier, fax, website, cubicle/desk space)? Is email or website assistance provided? What type of long-term technology support can a company offer? Does the company provide marketing templates? Does the brokerage belong to a Board/MLS and if so, what are the yearly dues? What is your cost of doing business, your sponsoring brokers role is to guide you to help build your real estate business because that is what this is all about, building a successful business!

5. Values and Core Beliefs As with any business, brokerages will have their own company culture, values and community missions. How is the brokerage engaged with the community? What does the brokerage do to be of service to its clients?

Where Do I Start Looking for a Broker?

When you are looking for a broker, you should start by looking in the community you hope to sell real estate in. You can ask other agents who they work for and the pros and cons of working for the brokerage. Search online for brokers near you and keep your eyes peeled for real estate signs and offices in your community. Give these offices a call and set up a time to meet up and talk with the broker owner or managing broker. Also feel free to just drop by offices in person!

Broker vs. agent vs. Realtor

Before diving into the details, let’s get our terms straight.

• Real estate broker: While each state sets its own agent and broker licensing requirements, typically, state requirements for a broker’s license includes additional sets. They need more hours of education and must pass a NYS Department of State Brokers exam. Brokers may or may also work as buyer’s agents and listing agents, along with the additional responsibilities that come with managing the firm.
• Real estate agent: While a New York real estate agent must also fulfill education requirements and pass a licensing test. However, they don't and can't operate alone—they operate under the supervision of a broker.
• Realtor: This is a licensed term from the National Association of Realtors. To become a Realtor, and not simply an agent or broker, real estate professionals must follow a strict code of ethics, complete an orientation course, fill out an application and pay a fee then be prepared to pay another fee and another fee. Please note, not required to build a successful real estate business, it comes down to who you choose as a sponsoring Broker, if their a member of a Board/MLS then you have to be a member too, their are Brokers who are not Board/MLS members. Its a business decision made by the Broker who knows whats best for his business.

The Interview Process…the Power is Yours!

Brokers are always looking for new agents to recruit. Most brokers you talk to will be interested in having you on their team. After all, brokers benefit greatly from having people join their brokerage, make sales and split commission with them. For this reason, there is no need to be nervous about interviewing brokers. This is not a typical job interview where you will be scrutinized. In fact, you can be quite “picky” about your choice of brokerage. You are essentially interviewing them, not the other way around. Why not interview several brokers before making your choice?  Never say "yes" to the first one you meet, play hard to get! Find the fit that is right for you. But, do not stress about making the “right choice.” You can change brokerages if you need to. Many will use one for their training and switch to building their own brokerage, this can be done in as little as 2 years in New York. You can ask your potential broker what happens to pending commissions and listings if you choose to leave the brokerage. Make sure to ask your broker about the 5 key points outlined above. The interview is the time to ask your broker the important questions. What type of commission split is being offered? What are the values of the company? What fees and costs will be your responsibility? Does the broker have educational or mentor-ship programs?

Can I become a New York Real Estate Broker?

If you want to work toward getting your own broker license, you will need 3,500 “experience points,” take a broker licensing course and have at least two years of experience as a New York Real Estate Salesperson and pass a Real Estate Broker Licensing Exam. Becoming a broker will allow you higher income potential. You will be able to keep more of your commission and can also start your own brokerage with agents who work under you. You can also look forward to being more competitive and expanding your territory. If you invest your time in the broker licensing program, the credits can also be used towards continuing education! Through the Manfred Membership program, the broker licensing course is always 50% off.

Consider Your Brokerage a Resource

Even if you aspire to be a broker yourself one day, use the time you have with a sponsoring broker as a resource and foundation for your new business. You can always learn something from someone who has experience in the field you want to be successful in. Someone with hands on experience can be more valuable to you than lessons from a textbook. Remember, you are starting a business for yourself! Do your research and align yourself with someone you feel comfortable and excited to work with.

What does it mean to be sponsored by a broker?

How do I find a sponsoring broker in California?

What is a sponsoring broker in Illinois?

Do you need a sponsor to get a real estate license in Florida?