Why do realtors change brokerages?

Hi Everyone,

I’m a new agent at RE/MAX and I am having a lot of fun! I’m just curious, I see a lot of movement in my market and with my friends on social where agents are moving brokerages. Why do people move and what kind of impact does it have on your business, (pros and cons)?

Carly

For many it is because they think the grass is greener on the other side.

Usually agents change either because they are unhappy with the brokerage fees, or the support offered from the broker.

I believe NAR has some statistics, but in AZ, most agents only stay at their brokerage for around 2 years before making a change.

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Hi Carly, I am guilty of changing Brokerages a fair amount. What started with maybe the grass was shinier on the other side, turned out to be just the brokerage costs as I felt that the systems and websites I was running didn’t require the extra costs associated with the brokerages I had my license with. At the end of the day the clients that I had, noticed that nothing ever changed on my website to reflect the changing brokerages as where I was focussing my work was on my personal brand which I learned from watching the big US teams across America. Ultimately I think it comes down to what your fees are and what the culture is around your office and the level of support that is offered that provides you value. You will find as you progress, that the strength of your personal brand and the power of a sophisticated website that generates your own leads is really all that you require to be successful in this business.

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Great question and as you gain experience in the industry, you’ll have a better perspective on the dynamics of your market. Generally, it is either the Agent is looking for a different value from a broker - could be they want more than they currently receive or they want less, as their current broker charges more for things the agent doesn’t feel they need. It could also be the accompanying systems and support provided. If you an office with 100 agents and 1 BIC, you can reasonably assume that the one-on-one support will be much less than if you have a ration of 25 to 1 (or whatever that number is) - but of course, that will also be reflected on the split. My advise, do not change brokerages because of the split - the grass will always look greener, but a change should be based on bigger more fundamental issues (i.e. culture, support) than merely money. Best of luck in your new career.

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2 years! Wow, that surprises me. Thanks Dane!

Hi Foz,

Great feedback. I am continually hearing from top agents that the focus should be on your personal brand and website, just as you suggested. After all, we are in business for ourselves. While I am proud to be a RE/MAX agent, I do see the value in putting the “Carly Carey” brand first.

Hi Maui,

I agree, switching because of split only doesn’t seem to make the most sense. There were so many different factors on why I chose the brokerage I am with. Support being at the top.

Great question!

What I have found to be the most frequent reason an Agent changes Brokerages and/or is unhappy with their Brokerage, is because the Agent FEELS ALONE. The old “secret sauce” culture still exists in some Brokerages, where Agents are afraid to (or unwilling to) share authentically. In my opinion, Brokerages who do away with the “secret sauce” culture; rather building a culture which encourages an emerging organization of collaboration, will be the Brokerages to watch as the industry moves forward.

What impact does a Brokerage move have on their business? This answer is HIGHLY dependent on the individual, their goals, and the move. There can be a significant impact for the positive, when the move is made in the right way, with the right individualized transition plan.

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I love that! Share the things that make you successful - it won’t make you less successful!

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:100: :smiley:

I switched brokerages because they no longer fit me. Their compass was in a different direction than mine. Splits haven’t ever been a factor for me as much as culture.

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Thanks for your contribution @RosemaryBuerger, great to see you on the forums

Love this and the nice space in which to discuss real estate.

Hi Rosemary, I agree - great place to collaborate.