As someone who has only worked at 3 brokerages throughout my entire Real Estate career, I never really understood the motivation to keep switching brokerages, often to just end up switching back, or switching again.
As soon as I got my Real Estate license, I also had my second kiddo…so I have to admit, I wasn’t “all-in” nor did I think I would be - like many Realtors, I had applied for a license so that we could save money on our own purchases and investments, and because it seemed like a pretty easy side-hustle. (Ha!) Anyway, I joined a really small firm that I think only had 4-5 agents on its roster, and as far as I can remember, they were all of the same motivation/mindset.
There wasn’t a lot of training provided, but I did a lot of hands-on learning while hustling foreclosures in the Dark Times (otherwise known as the Recession). After a couple of years, my business had unexpectedly grown, and I found myself in the position of actually needing a team - so I talked my mom (a natural salesperson) into getting her license and helping me while I had a couple more babies and our business continued to grow.
I also decided that instead of becoming an Employing Broker once I hit that 2-year mark as I had planned, I needed the support and people of a little-bit bigger brokerage, and long story short, I literally stumbled into the perfect place and ended up transferring my license shortly thereafter.
Flash forward 10 years, 100s of transactions, a move into brokerage management…and here I am, almost 3 years into owning an indie agency, West + Main Homes.
One of the most fascinating things that I have had the opportunity to experience first-hand is the ever-tempting Brokerage Bounce…agents who move brokerages quickly + regularly. It’s tough not to take those moves personally, but I’ve learned that Realtors really only have a small handful of reasons why they choose to jump from ship to ship, and not a lot to anchor them onboard, no matter the business model or the offering.
Promises, promises. Brokerages that are dependent on a constant flow of agents to keep their pipelines flowing are apt to make a lot of promises - whether it be company-provided client introductions (leads), pain-free transactions, various assortments of marketing campaigns and collateral, or the biggest one - TECHNOLOGY. Technology that promises to sell houses for you, because that’s the dream, right? To sell houses without having to actually sell houses? That would make me want to jump ship, too.
Greener grass. When you’re not selling as many properties as you thought you would, or when it seems like your friends at XYZ and 123 Real Estate are growing their production more quickly than you are, it’s easy to assume that there’s something magical in the water across town, across the street, or even across the hallway - and that if you drink from that same fountain your business will magically grow, too.
Discounted fees. There’s something to be said about keeping more of your own money, and if you’re a lone-wolf type of Realtor who only comes into the office to turn in closing checks, doesn’t show up for classes or social opportunities, never even bothered to figure out how to login to the Company-provided tools, doesn’t really need much supervision or guidance, and frankly doesn’t even like other Realtors that much (you know who I’m talking about!) then a Flat Rate or Discount Model might be a better fit for your Real Estate business.
Resistance to inertia. According to Steve Murray at Real Trends, inertia sets in for agents after 4-7 years with a brokerage. Agents who are afraid of becoming complacent, who are bored with what their brokerage has to offer, who have hit a plateau in their growth and can’t seem to get past it often think that moving to a different brokerage is the answer - and sometimes it is. Agents sometimes experience a nice bump-up in business if they have been languishing in the same space for a while and move to something new and different, probably not because the tools or office are a better fit, but because motion creates forward motion.
It’s a bit of a weird time to be in the business of selling Real Estate, isn’t it? In one of the best economies that most of us can remember, with super low interest rates and what has been a cycle of incredibly low inventory, it’s difficult to feel completely solid on this footing, when everyone keeps talking about when it’s all going to drop out from under us. There are also new elements that we are all trying to get a grasp on: ibuying programs entering markets and scooping up market share, and industry “disruptors” like “the billion-dollar-backed newbies” and “the MLMs of RE virtual brokerages” recruiting with an almost starved frenzy - if they are targeting you as an agent, it can be almost impossible to avoid the distractions.
If you are thinking about making a brokerage switch, I would encourage you to take a deep breath and ask yourself the following questions:
Why did I decide to join my current brokerage in the first place, and are they delivering on their promises?
What is this agency offering me that I am not already currently getting at my current brokerage?
Is this a switch that will make me happy and help me maintain/grow my business for the next 4-7 years?
Do I have the time + money to make the switch right now in my career with my current pipeline?
If I switch because it’s cheaper/a lower split will I still have everything that I need to run my Real Estate business the way I have been? If I switch to a more expensive brokerage because they are offering so much more, what will the ROI be on that difference in investment?
Still think it’s the right time to make a move? I would encourage you to evaluate several brokerages that you have admired from afar. Here are a few things to consider:
+ Does the branding + marketing resonate with you? Are you excited about it?
+ Do they offer the variety/frequency of education/training/coaching/supervision that you need right now in your sales career?
+ Does the business model (splits, monthly fees, etc) make sense for YOUR business model?
+ Does their tech stack line up with the way you like to work?
+ Do you like the way the office feels? Would you feel comfortable walking in and working, and also bringing clients there?
+ Will you actually use the things that you will be paying for?
+ Are there extra costs to consider (i.e. franchise fees, annual charges, hard costs for products + services like signs/business/cards/marketing collateral, mentor or coaching splits, etc.)
Before you start making the rounds, create a spreadsheet so that you can side-by-side compare the different offerings - and don’t be afraid to go to the meeting prepared with a list of questions + concerns, as well as take notes during the interview. There will be a lot of information, and it’s important to make an informed and well thought-out decision so that you can avoid bouncing again anytime soon!
If you would like to talk it out before making a decision, I’m here for you. Let’s talk.
Wondering if West + Main might be a good fit for your Real Estate business? Join us at one of these upcoming classes or events…you don’t even have to tell us you’re coming, we look forward to meeting you.
