Real estate professionals in Ontario must work for a brokerage. Choosing the ‘right’ brokerage is the key to a successful career in real estate. How do you choose the right brokerage?
First, determine the type of brokerage that matches your professional aspirations. Consider the following:
• franchise vs. independent
• full service vs. limited service
• listing vs. selling
Second, consider the compensation being offered. Most brokerages compensate salespeople by sharing amounts. There are two methods of compensation: commission based on a percentage of the sales price or a flat fee. The method of remuneration is usually set out in the representation agreement.
Compensation plans will vary depending on the brokerage. For example, some brokerages pay a high percentage of the total commission but the salesperson must pay monthly fees to the brokerage regardless of whether commissions are earned.
Please note, the commission split should not be your first priority.
Third, and most importantly, does the brokerage offer professional development and support? This is especially important if you are just launching your career.
Fourth, consider the brokerage’s environment. Is it a place in which you would be comfortable working?
Finally, shop around. Before you begin interviewing potential brokerages, research the various brokerages in your area, review their websites to determine if the brokerage would be the right fit for your professional aspirations.
Questions to ask in a brokerage interview:
• What training programs are available for new salespeople? Is there a cost?
• Does your training include mentoring?
• What special services do you provide that are unique from other brokerages?
• How many new salespeople do you train on average each year?
• Can I speak to some of your salespeople?
• What is the commission split?
• Which expenses do you pay? Which expenses do I pay?
• Do you have an office policy manual I can review?
Do you have any additional tips/advice on choosing a brokerage? Let us know.
Interview with Dianne Usher (2011), Broker, Royal LePage, and former OREA president; Real Estate as a Professional Career