Congratulations on starting your real estate career in Arizona! One of the first steps you'll need to take, as per state law, is partnering with a real estate brokerage. But which one should you choose? It's important to find the right fit in terms of culture, pay, support, and more. Here are the five main factors to consider.
Consider These 5 Factors:
One of the most important factors to consider is how a brokerage pays you. In most cases, real estate agents get paid a commission. That means you only earn when you close a sale. Brokerages will typically take a percentage of each sale you make in what's known as a split.
For example, a common split is 60/40, meaning you keep 60% of your commission and the brokerage keeps 40%. If your commission was $10,000, you would keep $6,000 and pay your brokerage $4,000. While this can seem like a big chunk to give away, the brokerage is helping you earn trust and get leads that you otherwise wouldn't get as a new realtor.
You may also find Arizona brokerages that offer salary and benefits. Further, some brokerages offer a hybrid model of salary, benefits, and commission. When shopping around, be sure to get the details on the different compensation structures and compare them side-by-side.
The next factor to consider is the brokerage's reputation. Buying a home is often the biggest purchase a person makes in their lifetime, so people want a realtor they can trust. But how do they know who to trust? In many cases, it's through a recommendation from someone they know. It can be hard to get your career started when no one has worked with you before. Being new, you'll want to join a brokerage that has a good, established reputation in your area. You will then be able to gain trust by association. Check an Arizona brokerage's online reviews, market share, social followings, time in business, etc.
Another factor to consider is the level of support a brokerage offers you. Some Arizona brokerages will provide you with training, marketing materials, resources, and leads. Others will pretty much leave you to your own devices. A high level of support can help you hit the ground running, resulting in a faster road to profitability. However, it can come at a cost, such as a brokerage taking a larger cut of your commission. Find out how much support prospective brokerages provide and weigh them into your decision.
All real estate sales are not the same, and different brokerages may focus on different types of sales. For example, you may want to focus on luxury homes, walkable neighborhoods, resort and vacation properties, or ranches and horse farms. If you have a niche in mind, be sure to look for brokerages that share the same focus or are willing to support you.
5. Company Culture
The culture of the brokerage should also play into your decision. What type of environment do you prefer and which type helps you to work best? Do you like a family-run mom-and-pop feel with more freedom in how you conduct business or a big-box franchise with corporate guidelines? Do you prefer a collaborative environment or one that's more competitive? Think about this and then look for Arizona brokerages that are a culture match.
Find the right real estate brokerage for you in Arizona
Choosing the right brokerage is an important step for all new real estate agents in Arizona. The key is to do your homework before making a decision. First, research your options and assess them using these factors. Next, narrow down your options by choosing the top three that come out ahead, all factors considered. Then, vet each of your top choices a bit more closely. Contact them, chat with other agents at the brokerages, and find out their process for bringing on agents. In the end, you can make an informed decision on which one will be the best bet for kickstarting your new career.
Want to become an Arizona real estate agent but still need to take your real estate license courses? Learn how to take them online today!