Best Real Estate Agency to Start With & Mistakes to Avoid
If you want to build a successful career in the real estate world, you should be strategic from the beginning. Even a simple mistake at the start can affect your future. The first step is to join a brokerage that supports and guides you in the right direction. Now you must be concerned about the best real estate agency to start with.
Considering the benefits provided, Keller Williams is the best real estate company for both new and experienced agents. However, RE/Max, Coldwell Banker and eXp Realty are also great options.
In this article, I will talk about all of these real estate agencies that offer the best benefits and support to the new agents. Agents often fail to have a successful career in real estate even if they joined the right brokerage due to certain rookie mistakes. I will also discuss them later on in the article so you can avoid them and have the best possible chance of success.
How to Choose the Best Brokerage for New Agents
Your first agency can influence your career as an agent. So, it has to be the best one for you. Make a list of some real estate companies of your choice and do some research to find out the answer to these questions:
- Do they provide any training to rookie agents?
- How is the company culture?
- What is the commission split structure?
- How much do new agents have to pay as fees?
- What facilities and support agents get from the company?
- How is the reputation of the company in the market?
The answers to all of these questions have to be in your favor. As a new agent, you should choose a company that offers the best training and mentorship program. Since you are new in the real estate business, it will be difficult for you to develop a career without knowing how things work.
What Are the Best Real Estate Agencies for New Agents?
It is no surprise that Keller Williams is the best real estate agency for beginners in the industry. The company is the best choice for new agents for its lucrative offers like a well-planned training program, reasonable commission split structure, and agent-oriented culture. Starting with Keller Williams means a great career ahead of you.
Keller Williams since the start has been focused on making talent rather than simply hiring them. That is why they have so many self-development and education options for their agents.
And I think that creates a perfect work environment for any beginner to become an expert in the field. Let’s talk about all the benefits you’ll be experiencing if you join Keller Williams.
Keller William Training Program
As a new agent, it is understandable to not have much practical knowledge about the real estate business. So, to help the new agents, KW provides comprehensive and up-to-date training programs.
New agents get a unique ID and password when they join the company. They can log in to the KW cloud system and access all the information gathered by the company on the real estate business.
Then, there is KW Ignite, a four-week training program, where you are trained by expert agents of the company. You will learn adequately about finding your first clients, developing negotiation skills, lead generations, and much more from this program.
If an agent feels unprepared even after the training program, the company arranges a mentorship program known as KW MAPS. An experienced agent will be assigned to help you to answer your questions.
KW Commission Split Structure
KW provides not just the best training but also the best commission structure for the agents. It has a 64/30/6% commission structure. All the agents of KW start their new year with this structure. 64 percent of the commission goes to the agent, 30% goes to the market place and another 6% is paid as a franchise fee.
The amazing part of the commission distribution is the cap system. The market places of KW have set a certain amount of money as a cap. When agents pay the cap, they take 100% of the commission for the entire year.
The agents do not have to pay any extra charges or fees till their next anniversary year. After that, they will again return to the 64/30/6% commission structure.
KW Profit Sharing
KW gives you extra benefits with its profit-sharing system. You will get a share from the company when the agent recruited by you closes any deals.
It does not matter whether you are a recruit or someone working at KW for years. You can be a sponsor for other agents. When a new agent joins, he or she has to fill up a form to mention the agent who brought them to the company. Thus, the sponsoring agent will get a share of the recruit’s money even paid by the later agents brought by the recruit.
KW Company Culture
The culture of KW is agent-based. It means all the decisions made by the company are taken thinking about the betterment of the agents. Moreover, KW has an agent leadership council that directly takes part in company decision-making.
KW marketplaces have a friendly and supportive environment.Therefore, new agents are warmly welcomed in the company. KW also put a lot of emphasis on cultural diversity and gender equality. So, every agent regardless of their culture, gender, and age feels a part of the company.
KW Company Reputation
The reputation of a company is also very important for a real estate agent. You cannot get many clients without having a good reputation. Keller Williams is undoubtedly one of the top real estate companies in the U.S.
The company began its journey in 1983 and became a franchise in 1991. So, compared to many other real estate companies, KW is fairly new in the market but still came this fair. It will definitely grow even more in the coming years. Therefore, if you join KW as a new agent, you will get more opportunities because of its reputation and brand value.
Other Companies Best for New Agents
Besides Keller Williams, you will find many other agencies that offer advantages for new agents. To narrow down your choices, here are a few other agencies you should look into:
RE/Max is an international real estate company and one of the top ten companies in America. The company is a fine choice for experienced agents. The new agents might have to struggle to get the best commission split structure in the company, but the reputation and training program of RE/Max is worth the hard work.
So, what does it offer to the new agents?
RE/MAX Commission and Agent Fees
RE/MAX does not have just one fixed commission split structure. The commission split structure, caps, and desk fees vary based on where your office is located. But for new agents, the split structure in most of the offices is 60/40 split.
The highest commission split structure is 95/5, and no agent gets 100% commission. You also have to pay a high desk fee if you work for a 95/5. So, new agents who make $25,000 in commission start with a 60/40 structure. It is best for the new agents because you only have to pay the company when you make a sale.
Once you generate more money from your commissions and feel confident, you can change to 70/30. But you have to pay the cap by then which is $23,000/year. Similarly, you can go to the 80/20 structure and finally 95/5 by paying caps for each stage.
RE/MAX Training for New Agents
Like KW, RE/MAX provides extensive training programs and courses for new agents. The company understands that it can have a profitable business by empowering the agents with knowledge of the real estate business.
It has recently developed five new courses for rookie agents. The company guarantees the courses will help the agents to take their business to the next level. The new courses focus on developing modern communicative skills and techniques like using social media to reach more clients.
The personal development programs of the company enable the agents to think from a new angle, make better business negotiations and increase emotional intelligence. Hence, new agents will learn a lot from RE/MAX Company that can be used in their future endeavors.
Another real estate company that is overall the best for new agents is Coldwell Banker. The company has a renowned reputation, offers a training program, negotiable commission split structure, and company culture. So, you will find some good reasons to join Coldwell.
Company Reputation
As mentioned before, the company’s reputation is a huge factor for starting your real estate agent career. Coldwell Banker has been in the market since 1906, and its reputation is skyrocketing. So, as a new agent, you can consider Coldwell for its reputation.
Clients want to hire agents whom they can trust. They consider the name of the brokerage which the agent represents. So, the brand name for Coldwell will surely influence your deals with clients. Moreover, you may get more clients simply because of the name of your brokerage.
Coldwell Commission Split
The offices of Coldwell Banker are independently owned and operated. Same as RE/MAX, the company also does not have any fixed commission structure. But the commissions and fees are flexible for new agents.
You have to talk with the local franchise office or an agent working for the company to know what benefits the office provides to the new agents. No matter what the structure is, you should know that agents will not have 100% commission at any stage, and you have to pay 8% as a company fee from every deal.
The company is always open for negotiations, and it will always offer you the best commission structure based on how much you can earn from your commission.
Coldwell Company Culture
All the offices of the company follow the Big Blue Culture. It has a client-centric culture. So, the company arranges the in-house training programs to teach necessary people skills to its new agents.
The best and the experienced agents of the company train the new agents. Their experience and knowledge enlighten the new agents. The company has been around for a long time. Therefore, you will find people from different backgrounds, cultures, and gender working in various sectors of the company.
All the brokers and agents are always ready to learn something new, and they help each other to grow their business. Thus, new agents get the opportunity to learn from them and make connections in various sectors related to real estate.
If you want to keep your current job and start working as an agent, you should consider joining eXp Realty. It is a virtual real estate company that offers incredible deals to agents. Besides, you do not have to work in an office. You can work from home anytime you want.
eXp Realty Commission and Fees
People work honestly with a virtual company that offers an incredible deal. eXp offers that kind of deal to the agents which is why the company is growing so fast. You will be excited to know that the company has an 80/20 commission structure without any extra fee.
It means whenever you sell a property, you will get 80% of the commission and give the 20% to the company. Moreover, you can also get a 100% commission once you pay the $16,000 cap per year.
eXp Revenue Sharing System
You might have thought that KW is remarkable for passive income, but what if we say eXp offers even better? Yes, eXp has an amazing revenue-sharing system.
You can recruit new agents and become sponsors similar to KW and get the share of the commission split. But the best part is you can also get a share from company stocks once you reach your cap money of the year. Hence, it is an excellent way for a new agent to earn money.
eXp Training and Facilities
Do not think that you will not get any training from eXp because it is a virtual company. If you already have a job, you certainly do not have the time to attend any training in a physical classroom. No need to worry because eXp has an online training program.
You will get all the support and benefits you can imagine from the virtual campus of eXp. All the course materials and resources are available for the agents. New agents can easily take advantage of these resources to enhance their knowledge and skills in the real estate business.
Furthermore, it has a mentorship program, and the agents can take help from expert agents online.
Mistakes to Avoid While Starting with a Brokerage
It might not be always possible to work with the top brokerages that I have mentioned in the article. It does not mean that you cannot have a thriving career without working with these companies. Again, many fail to do well in the companies because they do not have any strategies.
Here are some common mistakes you should avoid at the beginning of your realtor career:
- Not researching brokerage: New agents often join a company without planning. They do not research the company and thus do not know how the company works. So make proper research on the company you are going to join. The commission structure and fees have to be in your favor.
- Having no business plan: Another mistake by rookies is having no business plan. They expect clients without strategic marketing. Moreover, they do not have elaborate plans to achieve their goals. You must have a written plan of your career when you decide to become an agent.
- Lack of Investment: You have to invest some money to make a career in real estate. Proper marketing of your business is necessary to introduce your business to clients. You also have to maintain your office. Some agents ignore this fact. As a result, they close their business soon.
- Not learning the business: This is one of the biggest mistakes you must avoid. You cannot be successful in a business without having proper knowledge about it. This is why you need to join a company that empowers you with training and support. Besides, you must do your own research on the business.
- Lack of Motivation: When you are new in the business, it is normal to have few clients at the beginning. Many agents lose motivation when they do not get clients and so stop giving effort in the business. You have to understand that you need to work every day to improve your business. Laziness will take you nowhere.
Conclusion
So, the best real estate agency to start with is Keller Williams. But, they aren’t the only ones in the industry. So, you do have some options when choosing which agency to work for. Hence, you should do some proper research and pick the one that best suits your needs.
Thanks for reading and best of luck on creating a successful real estate career.
