The idea of working with a sponsoring broker might have already crossed your mind, but the task of finding one may overwhelm you. The reason is that there are so many choices out there. You may already have a few prospects on your lists, most of which come from recommendations from friends. But finding the right one takes more than just heeding to a friend’s advice.
Be Sure You Work with Legitimate Companies
One mistake you easily could make as a new real estate agent is opting to work with an individual broker for real estate broker sponsorship. Yes, it’s easy to find someone with a broker’s license, but once you get a high commission split offer, you should consider that as a warning sign. Since you are planning to join a firm, it is best that you focus on joining a company with excellent reputation and great track record. Avoid working with brokers who you know nothing about and those who seemingly not have an online presence.
Knowing the Red Flags
When you start your search for a sponsoring broker, never work with a firm that refuses to reveal or itemize the fees they charge. Some firms will try to lure you to accept their offer through high commission splits. What they are actually doing is they impose a bunch of hidden charges. There’s also another method in which they impose alternative splits on their new agents. The last thing you want is to sign up for a sponsorship which costs you more than you could accommodate, with fees that include start-up, software, desk, technology, and all sorts of transaction fees you were initially clueless.
Focus on working with sponsoring brokers who insist on complete transparency with their charges. Don’t worry since you will find firms out there that do not charge start-up, desk, or any other hidden fees. The most reasonable offer is the one wherein they tell you to pay for an all-inclusive overhead contribution per month for the commission split plan.
Working with the Sponsoring Broker
Keep in mind that majority of sponsoring brokers expect you to generate your own leads and referrals. The truth is an offer for a high commission split will never have any use if you don’t have something to work on. The tough industry in real estate entails that you never will succeed if you limit your reach to friends and acquaintances. This is where the value of a real estate broker sponsor comes in. Work with a firm that offers you the room to work on vetted buyers and sellers instead of just handing out cold leads and phone numbers.