Changing Brokers... advice

[racecar]

I am a new agent who went with a big, national company. After a marketing seminar rocked my world, I've decided I want to run my business through another company where the the split starts at 70/30 and moves to 100 %after $14,000. ( Im at a 50/50 split right now with 6% corporate fee that never goes away) I have yet to finalize my decision but my fellow attendee did and today told our broker. She FLIPPED OUT. My question: do I leave before I actually sign with the other company AND how do I handle the encounter with my broker? Never done this before!!!

[webmaster]

Do you have any deals pending? If no then you have nothing to worry about, your broker "Flipping out" is just inappropriate, besides a 50/50 split is just a joke unless they are paying your expenses and have amazing training.

Did you decide to go with KW? Sounds like thier structure, good luck and let us know how it goes with the new firm

[mikelong]

There are a couple ways that you can do this. 1st is to sign up with the other company first before telling your current broker. Then let them know that you have decided to go with a different company. You don't want to piss them off because you will be doing deals with this company some time down the road.
2nd is to let your current broker know that you are exploring different opportunities and that one came about. Let them know why you are considering moving; commision, better location ect... They might just match their commion besides the 14k part. Just remember, real estate is all about location. because you are new, you need to be in a good office that has walk by traffic so you can pick those people up as clients. location, location, location.
good luck

[Boston Condo Guy]

Everything is negotiable in real estate (as stated earlier, try and negotiate a better commission). However, it sounds as though you may already be "committed" to moving, at least in your mind.

[thataway61]

Everything is negotiable in real estate (as stated earlier, try and negotiate a better commission). However, it sounds as though you may already be "committed" to moving, at least in your mind.

Exactly, all is negotiable!

And it becomes easier to negotiate when there are better deals out there. The flipping out is because everyone operates in their own best interest. Your current split was in the current brokers best interest, not yours. Perhaps the one that is flipping out should offer you the same benefit you can get elsewhere.

One of the benefits of having a realtor is for negotiating in awkward situations, the agent becomes the intermediary and the buyer or seller represented gets the benefit of being removed from the front lines of awkward situations. In negotiating for yourself you don't have the benefit of this intermediary. Since you are a principal in the negotiation it becomes more difficult to have a poker face and not be emotional.

The flipping out is going to be:
1) A negotiating tactic ( make you uncomfortable so you maintain the status quo instead of acting in your best interest )

or

2) A purely human reaction to an event that reduces the potential economic returns to the person flipping out.

I would expect that if you have the current split you do and the potential for the split you mentioned, the case would be the same for more agents in the office and that #2 above would be a fair assumption.

I don't think you should retard your economic prosperity to the benefit of someone else just because they may flip out, especially when the person flipping out is the beneficiary of your efforts as an independent contractor.

Try to remove your personal self from the negotiation and enter as the agent for Yourself, Inc. Remember, you have an ethical and fiduciary responsibility to represent Yourself, Inc.'s best interests.

"Mr. Broker, I am sure that you understand that this is purely an economic decision in the best interest of Myself, Inc. (me) and Myself, Inc. subsidiaries (my family) and has nothing to do with your fine company or yourself."

Be sure to treat the other party with dignity and respect and maintain that after you change offices, even if the other party gives you no reason to.

I know what I would do.

[judyo]

I've mentioned before on this forum that I left my broker after being with him for 22 years. It was like family. But there was a "new company in town" that basically allowed me to earn almost twice what I was earning from my original company.

I miss all of my old pals but they weren't paying my bills. I still keep in touch & was even invited to the Christmas party (& I've been gone almost a year).

My broker didn't flip out in front of me but I'm sure there were fireworks after the fact. Plus his son, daughter-in-law & wife all worked there & I heard that his kids were stunned & very upset that I left. Almost like, "How could she?!"

Here's the kicker. After leaving I was kind of lost with my 1st new company (now with a 2nd new company). Plus I had halted business waiting for closings from my original company before moving on. Bottom line is I did less deals than the year before yet doubled my income.

You have to think of yourself first, everyone else does. And a broker flipping out is ridiculous & unprofessional. They shouldn't burn their bridges like that. What if you weren't happy with the new company? You sure wouldn't go back to him.

Move on & best of luck.

[racecar]

Hey... thanks for all the responses. I appreciate all of them.

I do not have any pending deals at the moment, which is precisely why I think this is the time for me to make my move.

I wrote that post from the office while I was doing my floor time. I came to the conclusion that I needed to know where and what I was doing before I said anything to my broker. It was nice to come home and have independent confirmation that I had made the right choice when I read what people wrote.

The 70/30 split that I was referring to was Realty Executives but I do in fact have an interview with KW on Tuesday. As far as negotiating a better split with my broker, I suppose I could but I believe it would be futile. It is a graduated split that escalates with sales, ultimately topping off at 85/15. The problem is the corporate fee of 6% off the top. It renders 85% to 79% and is non-negotiable.

My friend who got the brunt of my brokers anger went to Re/Max where she chose her split (75/25) has to fulfill an $18,000 cap and then graduates to a 95/5 split. Its got the location, location, location factor going for it big time. Right in the thick of a revitalized and thriving downtown. Lots of walk-ins. The higher cap and 5% may totally be worth it since my target market is urban-loft-culture but the whole "Re/Max is for more experienced agents" vibe gives me pause. But not enough of a pause to pass up an interview.

THE most important thing I got out of that marketing seminar ( and which is reflected here in the some of the comments ) is that I am not just a Realtor working for XYZ Realty. What I am is someone who is running his own business through a brokerage. It was a light bulb moment for me. It only makes sense, then, to run my business through a company with the most condusive terms provided they are a honest, eithical and full service brokerage.

I am glad I came to that conclusion sooner rather than later in my career.

[racecar]

Oh yeah... hey Judyo! Your 22 years to my 6 months made me laugh at myself! Your stakes on a personal level were much more dramatic!

[thataway61]

Oh yeah... hey Judyo! Your 22 years to my 6 months made me laugh at myself! Your stakes on a personal level were much more dramatic!

It is always good to be able to laugh at yourself.

With only 6 months experience under your belt, it is perfectly understandable to be unsure and possibly intimidated. I don't have nearly the time invested that Judy does, but you will find after a few more months you will have plenty of confidence in yourself.

The point of my previous post was to convey to you that it is perfectly alright to act in your best interest as long as you are ethical about it and if someone wants to make you uncomfortable about it, then they just prove their true character.

[racecar]

Yo Cal

Yes, yes and yes.

Your post was reasoned and thoughtful and will help me when I, next week, tender my resignation. Thanks for your imput. Very helpful.