Your choice of brokerage can make or break your first year. Learn what to look for and questions to ask before signing.
Choosing the right brokerage is one of the most important decisions you'll make as a new real estate agent. According to the National Association of Realtors, agents who receive proper training and support in their first year are 3x more likely to still be in the industry after 5 years. The brokerage you choose will significantly impact your earning potential, professional development, and overall career satisfaction.
Traditional brokerages like Keller Williams, RE/MAX, and Coldwell Banker offer higher commission splits (50–70% to agent) along with more training, support, and office space. Discount or flat-fee brokerages charge lower splits or monthly fees but provide less training and support, making them better suited for experienced agents. Virtual brokerages allow you to work from anywhere with higher splits (80–100%) but offer limited in-person support and are technology-focused.
As a new agent, training quality should be your top priority. Ask what formal training programs are offered, whether there's a mentorship program pairing you with experienced agents, and how accessible those experienced agents are for questions. The best brokerages invest heavily in new agent development because they know it leads to long-term success for everyone.
Understand exactly how you'll be compensated. What's the commission split between you and the brokerage? Are there desk fees, franchise fees, or E&O insurance costs? What expenses are your responsibility? Some brokerages offer graduated splits that increase as you sell more. Others offer 100% commission with a flat monthly fee.
Some brokerages provide leads to help new agents get started. Does the brokerage provide leads and what's the quality? Is there a fee for leads or are they included? What's the conversion rate on brokerage-provided leads? While leads can help jumpstart your career, don't rely solely on them — building your own sphere of influence is essential.
Modern real estate requires good technology. What CRM is provided for client management? Is there a transaction management system? What marketing tools are available? Does the brokerage provide a website and IDX integration? Technology can significantly impact your efficiency and professionalism.
You'll spend significant time interacting with your brokerage and colleagues. Is the environment collaborative or competitive? Are there team-building activities and community events? Does the culture align with your personal values? A supportive culture can make the difference between thriving and struggling in your first year.
When interviewing brokerages, ask: What does your training program look like? What's the average income of agents in their first year? How many agents left the brokerage last year? What ongoing support is available? What are the total costs I should expect? Can I speak with newer agents about their experience? A good brokerage will welcome these questions.
Be cautious of high-pressure tactics — legitimate brokerages don't pressure you to sign immediately. Watch for vague fee structures where costs aren't clearly explained. A lack of formal training program is concerning for new agents. High turnover indicates potential problems. Always research the brokerage online and read reviews from current and former agents.