YOUR FIRST BROKERAGE
Your first brokerage matters more than the split. You need someone who will actually help on your first deals, fees you can carry while you have no sales, and a contract you understand before you sign.
Meet the person who will help you
Ask who will check your first offer and who picks up the phone at 8 p.m. when a deal has a problem. Then meet that person. A recruiting pitch won’t tell you how much time a mentor really has for you.
Ask for the first-month training schedule. Good training covers client meetings, contracts, offers, deadlines and the office’s paperwork. Ask which classes are required and whether your mentor stays with you through your first closing.
Working part time? Say how many hours you really have. Ask who covers your clients when you’re at your other job, and whether that costs you anything.
Get every fee in writing
Ask for a written list of what you’d pay in three cases: a month with no sales, a sale from your own client, and a sale from a company lead. Monthly fees and per-sale fees should be listed separately. Watch for desk, tech, transaction, mentor, franchise and referral fees.
If there’s a cap, ask which fees count toward it, when it resets, and what you still pay after you hit it. The split alone doesn’t tell you what you take home.
Example: a high split isn’t always better
Say each sale pays $6,000 to your side before the brokerage’s share. Plan A pays you 70%, with $100 per sale and $100 a month. Plan B pays you 90%, with $100 per sale and $1,500 a month.
| Sales in one month | Plan A | Plan B |
|---|---|---|
| 0 | −$100 | −$1,500 |
| 1 | $4,000 | $3,800 |
| 2 | $8,100 | $9,100 |
Made-up numbers to show the math, before taxes and other costs.
In this example, the lower monthly fee leaves you with more at zero or one sale; the higher split comes out ahead at two sales. Compare the office’s recurring charges alongside the other costs of starting as an agent.
Find out what’s included and what you pay for
Ask which of these you pay yourself: Realtor association dues, MLS access, lockbox, contract software, a contact manager, signs and business cards. Ask whether you can take your contacts with you if you leave.
Errors and omissions (E&O) insurance
E&O pays for claims that you made a professional mistake. Many brokerages cover their agents. Ask who is covered, how much the deductible is, what’s left out, and how a claim from a past deal is handled if you’ve moved on.
Need your own E&O policy?
If the brokerage’s policy doesn’t cover you, or you want your own, you can get a quote online in a few minutes.
Ask to see the buyer and seller agreements you’ll use. The National Association of Realtors has a plain guide to buyer agreements that shows what clients can negotiate. Your training should teach you to explain them.
Pin down the lead promise and the exit terms
“We give you leads” needs details. Ask how leads are handed out, whether other agents get the same lead, how fast you have to respond, what share the company takes, and whether you have to buy ads. Treat any income projection from a recruiter as a sales pitch.
Read the contract for how much notice you must give, fees you’d still owe, what happens to pending deals, and who keeps your contacts. Get anything important in writing, not as a verbal promise.
Ask to talk with a newer agent at the office. Ask what their last contract question was, how fast they got help, and what came out of their first commission check.
Pick one, then get activated
Pick the brokerage where you know who will help you, you can afford the monthly fees, and you understand the contract. A bigger split isn’t worth it if no one answers your questions.
Then have your broker activate your license. In Florida, the activation steps explain the RE 11 form and the broker’s online option. Next, plan your first clients with your broker.
Still deciding if this career fits? Go back to the real estate agent startup guide.