One of the most important decisions you’ll make after getting your real estate license is choosing the right real estate sponsoring brokerage. This choice sets the foundation for your career, as your brokerage can provide the support and resources you need to succeed.
This guide will walk you through how to find a real estate sponsoring brokerage that aligns with your goals. We’ll discuss how to research brokerages in your area, what questions to ask, and how to negotiate the best terms.
Key Takeaways
- Research Is Your Foundation: Begin by researching local brokerages online, paying close attention to their reputation, market presence, and agent testimonials to create a shortlist.
- Networking Is Non-Negotiable: Attend industry events and connect with other agents to gain firsthand insights into different brokerage cultures and support systems.
- Ask The Right Questions: During interviews, ask specific questions about commission splits, lead generation support, training programs, and company culture to find the best fit.
- Know Your Sponsorship Needs: Understand the legal requirements for broker sponsorship in your state.
- Negotiate Your Terms: Be prepared to discuss and negotiate your commission splits, desk fees, and other terms to ensure the partnership is mutually beneficial.
Can Real Estate Agents Work For Themselves?
While real estate agents have a lot of independence regarding the day-to-day operation of their business, they have a legal requirement to work under the supervision of a sponsoring broker. After you work as a real estate agent for a state-mandated period of time, you can go through the broker licensing process to obtain more autonomy and advance your career.
Do your career goals include earning a broker license? Understanding your goals, whether they’re focused on income, leadership, or work-life balance, can help guide your choice of brokerages.
Steps to Finding the Right Real Estate Brokerage
Finding the right real estate brokerage is one of the most important decisions you’ll make as you start your career. You’ll need to weigh hard data, such as commission splits and administrative fees, against more subjective factors, like company culture and reputation, which can’t always be measured. By taking it step by step, you can confidently choose a brokerage that aligns with your goals and supports your growth.
Step 1: Complete online research
Your search begins at your keyboard. Use search engines to find brokerages in your area. Remember, this is how potential buyers and sellers will find you, too, so the brokerage’s online presence matters!
- Keywords to Search: Start with broad terms like “real estate brokerages in [Your City]” and then narrow your focus. Use more specific phrases like “[Brokerage Name] agent reviews,” “top real estate brokerages for new agents,” or “brokerages with the best training programs.”
- What to Look For: Do they have a professional online presence? What is their company’s mission? Check their listings, social media pages, and online reviews from both clients and agents. Pay attention to comments about support, culture, and agent success.
Step 2: Talk with agents at networking events
Online research can only tell you so much. Attending real estate networking events, seminars, or local real estate association meetings allows you to gather firsthand information.
Talk to agents from different brokerages. Ask them about their experiences, what they like about their brokerage, and what challenges they face. This is your chance to get an unfiltered view of a brokerage’s culture.
- For Experienced Agents: “You’ve been in the industry for a while. Which brokerages would you recommend for a new agent who is serious about building their career?”
- For Newer Agents: “What has your experience been like at [Brokerage Name]? What kind of support and training did you receive when you first started?”
- For Agents in Your Network: “I’m looking to join a brokerage that has a strong mentorship program. Do you know any that are known for supporting new agents?”
Also, pay attention to how brokers and agents talk about their competitors. A brokerage’s reputation within the local industry is a powerful indicator of its quality and integrity.
Step 3: Talk with recent buyers and sellers in your area
Engaging with recent buyers and sellers can provide firsthand insights into a brokerage’s performance. Ask them about their experiences working with specific agents or agencies, the quality of communication throughout the process, and their overall satisfaction.
Their feedback can illuminate how a brokerage operates from the client’s perspective and whether it aligns with your expectations as a future agent.
By combining insights online, from current agents, and recent clients, you can make a well-informed decision about which brokerage is the best fit for your career.
Benefits of Joining a Real Estate Brokerage
Please note that working under a broker is a legal requirement. However, the right brokerage offers much more than just compliance. Your brokerage should serve as a launchpad for your career, offering essential support systems that help you thrive.
Beyond mentorship and basic training, look for these secondary benefits that can make a significant difference in your day-to-day operations and long-term growth.
- CRM Tools: A Customer Relationship Management (CRM) system is vital for managing leads and client communications. Many brokerages provide access to powerful CRM software, saving you the expense and hassle of finding your own.
- Administrative Support: Some brokerages offer transaction coordinators or administrative staff who handle paperwork and compliance, freeing you up to focus on what you do best: building relationships and closing deals.
- Marketing Resources: Look for brokerages that provide professionally designed marketing materials, social media templates, and even assistance with marketing budgets. These resources help you build your brand and promote your listings effectively from day one.
- Industry Recognition: Aligning with a brokerage that has strong brand recognition and a positive reputation in the community can give you instant credibility with potential clients.
Topics to Ask About When Finding a Real Estate Sponsoring Brokerage
The interview process is a two-way street. You are interviewing the brokerage as much as they are interviewing you. Come prepared with a list of questions to ensure you have a clear understanding of what they offer.
- “What is your average commission split for new agents, and what is the path to increasing my split over time?”
- “What are the monthly desk fees or administrative fees, and what do they cover?”
- “Do you offer lead generation resources, or am I expected to generate all of my own leads?”
- “What exclusive training programs are available for agents specializing in luxury homes, commercial real estate, or other specific niches?”
- “Can you describe mentorship programs for new agents?”
- “What kind of marketing support and resources do you provide?”
- “How would you describe the company culture here?”
Related Article: Top 10 Real Estate Interview Questions & Tips to Answer Them
Other Factors to Consider When Finding a Sponsoring Brokerage
Beyond the standard questions, consider how a brokerage fits your specific career ambitions and work style.
- Niche Specializations: If you plan to specialize in a niche like luxury properties, commercial real estate, or new construction, look for a brokerage with a strong presence and expert support in that area.
- Real Estate Team Models: Consider if the brokerage supports individual agents, small teams, or large teams. If you prefer working within a team or aspire to build one, look for brokerages that offer the infrastructure, training, and commission structures that facilitate team growth and success.
- Legal and Regulatory Support: A good brokerage will have a dedicated legal support team or resources to help you navigate contracts and avoid potential liabilities.
- Cultural Fit: Do you thrive in a competitive, high-energy environment, or do you prefer a more collaborative and supportive atmosphere? Choose a brokerage where the culture aligns with your personality.
- Virtual Brokerages: If you value flexibility and autonomy, a virtual brokerage might be a great fit. These modern brokerages often offer lower overhead costs and innovative technology, allowing you to work from anywhere.
What Are Typical Broker Sponsorship Requirements?
To be sponsored by a real estate brokerage, you must first have an active real estate license in your state. This means you have completed your pre-licensing education, passed the state real estate exam, and submitted all necessary application materials.
In most states, you can complete the licensing process within two or three months. While real estate school is much more affordable than a college degree, you might consider financing your real estate education to make your career switch even more manageable.
Independent Brokerage vs. Large Franchise: Which is Better for Sponsorship?
Choosing between a large franchise brokerage and a smaller boutique brokerage depends entirely on your personal goals and work style.
- Large Franchises (e.g., Keller Williams, RE/MAX) often provide extensive training programs, advanced technology, and strong brand recognition. This can be incredibly beneficial for new agents who need structured support and want instant credibility.
- Independent Brokerages typically offer more flexibility, a close-knit culture, and potentially higher commission splits. These are great for agents who are more entrepreneurial and prefer a hands-on approach from their broker.
How to Negotiate Sponsorship Terms with a Real Estate Brokerage
Everything is negotiable in real estate.
Research typical commission splits and fees in your market to gain a clear understanding of industry standards. You can negotiate your commission split, cap, desk fees, and even your marketing budget.
Approach the conversation professionally, highlight the value you bring, and be prepared to compromise to create a win-win partnership.
How to Find Real Estate Sponsoring Brokerage for Luxury Homes
If you aim to enter the luxury market, you need a brokerage with a strong foothold in that niche. Start by identifying the top-selling luxury agents and brokerages in your target area. Look for brokerages with an upscale brand identity, exclusive marketing partnerships (e.g., with luxury lifestyle magazines), and a network of high-net-worth clients. Attend luxury real estate events and connect with agents in this space to learn which brokerages offer the best training and resources for breaking into the high-end market.
Your Real Estate Career, Your Way
Choosing the right sponsoring brokerage is one of the most impactful decisions you will make as a new real estate agent. However, your journey starts with getting your license.
Colibri Real Estate has helped over 500,000 agents start their careers, and we’re ready to help you, too. Check out our Pass or Don’t Pay Guarantee! Explore our state-approved pre-licensing courses and start building your path to success today.
