Here’s what you need to know about the three main types of brokerages.
When you’re a real estate agent, what type of brokerage you choose to work with is a crucial decision. Today I want to go over the three main types of brokerages and what they offer you:
1. Traditional brokerage. The focus here is on the owner of the brokerage. They typically have a physical location. You’ll have your own office, and the broker is readily available if you have any questions. The issue is that there are a lot of costs associated with a traditional brokerage. There are numerous fees, and splits are high.
“Technology-driven brokerages are focused on the agent.”
2. Flat fee model. This model is more focused on the client. Your client pays a flat fee, but you are stuck with the amount of money you make on each closing. The good news is that clients save money working with you, so that could give you a competitive advantage. However, your income potential is lower.
3. Cloud or technology-driven brokerage. This model is focused on the agent. The splits are typically low, there are fewer fees, and overhead costs are low. The thinking here is that when the agent doesn’t have to pay a ton of fees, they can put their savings back into creating a great experience for their clients.
If you have any questions about a cloud or technology-driven brokerage or any other real estate-related questions, please call or email me. I am always willing to talk.
