Changing Brokers Part Deux

ISellRiverview · 10-25-2007, 12:06 PM

I am pasting this into a new thread - as I have a similar problem to the person who started the other changing brokers thread and I need some advice ASAP.

I am getting ready (today or tomorrow actually!) to tell my existing broker I am moving to Keller Williams. They have a better split, better training, and a better philosophy on real estate. However I have had some conflicts with my broker, actually the broker's wife who thinks she's the broker and who you have to go to before you can even speak to the broker. I am a little afraid she or both of them are going to flip out.

I have a few listings and they do not let you take them with you. However, KW is willing to do a 25% referral fee if they allow me to take the listings so I need to diplomatically tell them I am leaving and ask if they'd be willing to consider that. One of the listings they are going to lose regardless because the client is about to go into foreclosure and my current broker says their new policy is that they don't "do" short sales. That's part of the reason I am leaving - I don't think they exactly know what they are doing and are making it up as they go along.

What's the best method to break the news? Just say KW is a better fit for me, as a newer agent who wants lots of training? How can I do this in the nicest way possible, while not wanting them to convince me to stay - because I won't. Any advice?

Also - what's the best way to tell your current clients? Should I tell them before or after I've told my broker (I would think before). The thing is the broker retains the listings where I've been - unless I can convince them to let me take the listings and give them a 25% referral fee. I don't know if they'll go for that. Otherwise, the broker I've been with has a $500 cancellation fee the client cancels their contract, should I mention that if they want to stay with me, I'll refund them the $500 at closing out of my commission? Otherwise they'll be reassigned to another realtor. How to do you explain this to your clients you want to try to retain and convince them that its a good idea to move with you? I think my clients are happy with my service, I'm very responsive, but I don't know if they'll want to pay $500 to get out and follow me if that's their only choice besides being reassigned.

metaylor9 · 10-25-2007, 01:54 PM

This is a tough situation and hopefully a learning one. Always negotiate an exit strategy with regards to listings when you first sign up with a broker. Make sure you do this at your new KW office.

That being said, even if you lose all your listings it sounds like you are going to be better off elsewhere. I think what you said about KW being a better fit is a great way to go about it.

I am not 100% sure on this, but I think if you wait until you leave you would then be soliciting another broker's active listing and that is not generally acceptable. I would call them before and let them know you are leaving and try to get them to ask about staying with you.

jessiesc · 10-25-2007, 03:09 PM

First off, good luck in your decision!

Quote:

Originally Posted by ISellRiverview

What's the best method to break the news? Just say KW is a better fit for me, as a newer agent who wants lots of training? How can I do this in the nicest way possible, while not wanting them to convince me to stay - because I won't. Any advice?

This is easy. I have lots of experience saying goodbye without getting an argument. I have found the most professional way to say goodbye is:

"Well [insert name here], I have some great news, and I'm know you'll be as excited about it as I am...! I've decided to continue my career growth elsewhere and I'll be starting [insert start date here]." When they ask with who (they always do): "It's with [insert company], they've made me an offer I can't refuse and I'm excited to accept their offer."

Quote:

Also - what's the best way to tell your current clients? Should I tell them before or after I've told my broker (I would think before). The thing is the broker retains the listings where I've been - unless I can convince them to let me take the listings and give them a 25% referral fee. I don't know if they'll go for that. Otherwise, the broker I've been with has a $500 cancellation fee the client cancels their contract, should I mention that if they want to stay with me, I'll refund them the $500 at closing out of my commission? Otherwise they'll be reassigned to another realtor. How to do you explain this to your clients you want to try to retain and convince them that its a good idea to move with you? I think my clients are happy with my service, I'm very responsive, but I don't know if they'll want to pay $500 to get out and follow me if that's their only choice besides being reassigned.

This part is much tougher as I believe (not sure) it depends on broker laws in your state and/or your brokers procedures. I would speak nicely to them about it, and see if they surpirse you

Eric Blackwell · 10-25-2007, 03:30 PM

Hey Riverview!

Here is a thought or two..(note: you may need to adapt this some for your own situation).

1. I like Jessie's way of handling part one. Realize that they are THERE to make it hard on you to leave. Where you are going does not matter. you could have been elected King of Siam and that would only matter because you were not competing with them.

2. Existing customers. First step. Get a "pre nuptual" with your new broker....you will NEVER have more leverage than you do now...have them waive their right to keep you if you decide that their KW brokerage is not for you. Remember that they WANT agents who can negotiate, right? Step two IMO...in some states you can get your NEW broker to "allow" the broker dollar part of the transaction to go back to them as a referral fee (not well stated, but the best I can do--in a hurry). That way, they get the split on existing transactions but you get to keep the clients which they KNOW will likely be loyal to you in the long run any way.

Hope that was clear. I know you likely don't think this is a good time to play hard ball with your new found broker...but there will never be a better one...

JMO...and may need to adapt to your state, so it ain't legal advice!! (grin)

Eric

Eric Blackwell · 10-25-2007, 03:31 PM

Just read METaylors remarks above...

Spot on IMO

Eric

Northern_IL · 10-25-2007, 04:16 PM

I'm in Illinois so it may be different here than where you are at but I switched from Coldwell Banker to RE/MAX a while back and here are some of my points:

I could NOT talk (legally) to my clients before the switch. I had to get permission from my old Broker to contact my clients and inform them of the switch, which I did. I told them I was making a switch to improve the service to my clients. I added that they had two choices. They could stay with the existing firm and be re-assigned or they could make the switch with me. Every one of my clients switched.

I had to draw up a letter that my new broker and old broker had to sign stating that there would be a 25% referral fee if the listings sold before the ORIGINAL EXPIRATION DATE. Once they expire, and I renew them, the deal is dead.

Any deals I had in escrow went to the old Broker. They followed through to the closing and then gave me the commissions. Of course they took out their fee of $100.00 per hour for the closing, and walk-through. They also charged me $10.00 for every phone call and fax they had to make in the deal. Personally, I thought that was BS but hey.....what the hell.

Those were the two main things....everything else fell into place for me.

Good luck!!!

Northern_IL · 10-25-2007, 04:24 PM

Wanted to add on about what you could tell your old Broker.

Just be up front and honest. If you are leaving because of training, then tell them that. Talk about KW having a bigger future for you and your business. Talk about how you expect to get more quality leads from a bigger firm. As a new agent, having a bigger name on your business card is more beneficial for you. You need to think about yourself and the future of your business.

Be sure to compliment them on some of their good features too. If you can "pat them on the back a little" it will make the transition a little smoother too. It will be a nightmare if your old Broker does everything they can to stick it to you.

Don't be nervous!!!! If you know in your heart that this move is going to better for you and your business then there's absolutely nothing to be afraid of. YOU ARE THE BOSS!

Good luck again

ISellRiverview · 10-25-2007, 08:39 PM

Thanks guys. The KW office I am moving to believes listings belong to the agent, not the brokerage, so that's something I don't even have to negotiate. Now I just have to tell my old broker. And I am leaving a bigger firm (a CB office) to go to KW, so I can't exactly use the "its a bigger name" argument. I am going to use the training bit, and thank them for all they've done and hopefully it will go well.