Small, Local Broker vs Large, National Broker?

Question

Answer

#Jordan Decuir the only real downside to an active selling broker is that they may be too busy or not available when you have questions, training, and/or if you are looking for a mentor in the business. I started with Remax then went to Coldwell Banker when I first got started in the business while I was finishing college. I always felt more like just another agent i.e. Agent #1001 not Maya Clark, an Agent. I also thought the training was too focused on promoting the brand then it was really teaching me. I felt I got the best actual training when I joined the 1st independent brokerage. Now as a Broker, I focus on training with my agents. I even have 2 KW Agents who come to my training because they are free #1 and focus more on building a business, systems & processes, contracts, compliance, and much more #2...just my experience and thoughts.

Answer

I wanted to follow up and thank everyone for their input here, it has helped me with my decision-making process. Special thanks to Jonathan Greene for making me think a bit more about the broker's brand recognition as having a bit more importance than I originally thought. Also, the point about training/mentorship. All of your comments are greatly appreciated and I know that I will be making a better-informed decision as a result of all of your help. Thanks again!

Answer

Hi @Jordan Decuir I'm also a new agent. My recommendation is to seek a small, independent brokerage in your town or county. You can often get better commission percentages and get better training. This is the route I will be going in Connecticut. :)

Answer

In my 21 years in the business I've been with both franchises (Re/Max & Coldwell Banker) as well as smaller independent firms. I can honestly say I've learned more and received more qualified leads from the smaller independents. I too had the option of opening a franchise or independent firm and opted to go independent. The main thing I caution Agents on either is to make sure the Broker is not a selling/competing Broker. if they are, make sure they have an established and experienced managing Broker who does not sell but is there to help Agents. To me, this is the key.

Answer

@Jordan Decuir - I think the most important thing in your first year is access to training and mentorship. If you don't have a mentor in mind, then shoot for the most training and an agency with high producers to learn from. If you have a mentor, it doesn't matter the agency because they will give you guidance, leads and help you develop.In your first year in real estate, the least important thing to worry about is commission split in my opinion.Remember that working with buyers doesn't apply to the agency you work for in my opinion. I don't think it matters to buyers much as long as you are responsive and productive for them and that the technology of your office helps them get their offers in quickly and efficiently.

Answer

Maya Clark that's precisely what I was thinking that you meant about the pitfall of a competing/selling broker. The smaller, local brokerage that I am considering is one in which the broker does not transact real estate herself and that was a question that I had originally as well.

Answer

Smaller = more horizontal leadership. If you're just looking to hang a license, it shouldn't matter."Brand name" matters maybe 1% if you will be trying to take on clients; 0% if you will be just working your own deals.

Answer

Thanks for the original question and the helpful responses! Currently in the same situation :-)

Answer

@Jordan Decuir - definitely, without question. When you are going after a $1m listing and one agent is from Sotheby's or Keller Williams, a luxury seller will lean that way when a small brokerage can't say they have international reach and/or marketing. It's a guarantee.That's not to say that small brokerages in some areas don't do well with luxury, but the brand building for that, and for a new agent there, is an uphill climb for luxury on the listing side.

Answer

@Jordan Decuir - it all depends on your goals. If you want training and mentorship, a larger brokerage will provide MUCH more training and opportunities for mentorship. There will be plenty of busy agents who need help with leads at a larger brokerage and who have Open House opportunities on the weekend. If you are looking to learn, this is a better option.If you are looking to source deals for yourself and aren't worried about training or having a real estate agent mentor, then find the smallest brokerage with the best split and the lowest fees. The big name brokerage plays a very important role when you get to the point where you are competing for luxury listings, but in the beginning and when working with buyers, the brand is much less an issue.