As you’re just starting out as a real estate agent, you may be wondering what comes next. There are many options for you as you begin your real estate career. Of course, you will need a brokerage to partner with you as a real estate agent. After you find a brokerage to work with, you need to decide if you want to join a real estate group or work as an independent agent. There are pros and cons to both options, so you’ll need to decide which option is right for you.
Real Estate Group
- Support – You’ll have the support of a team, their skills and personalities to balance out your own. You may also have access to an administrative assistant that you will not be able to afford when starting on your own.
- Shared Responsibility – Being a part of a team means sharing responsibility and roles with other members, unlike the roles of an independent agent.
- More Leads – More team members means more leads for the team. The more leads your team gathers, the higher your chances of success.
- Accountability – One of the hardest things about being an independent agent is the lack of accountability. Being on a team means constant accountability as an agent which will only improve your skills as a real estate agent.
- Improve Skill Set – As a new real estate agent, learning and improving on your pre-existing skills will only make you a better person and agent.
Learning Opportunity – Learning from others who have more experience is invaluable as a new real estate agent.
- Lower Commission – Unlike an independent agent, you will have to share commission with other members of your team which means less money in your pocket. An independent agent is able to set their commission and make all of the decisions when it comes to their income.
Team Fees – Though being on a real estate team has its advantages, it does come with fees you may not think about. In addition to fees paid to the brokerage, you may have to pay team dues as well.
- More Freedom – Perhaps the most appealing reason a real estate agent chooses to work independently is the freedom it provides. When working as an independent agent, you are in charge and make all of the decisions regarding your business.
- Higher Commission – Even though you will still pay a portion to the brokerage, the rest of your commission will be yours to keep. You won’t have to worry about splitting commission with your fellow team members.
- Promote Your Own Name – Instead of having to hide behind your team, as an independent agent you will be promoting your own name.
- Set Your Own Rules – Setting your own rules provides significant flexibility where being on a team is limiting as an agent.
- Less Security – Unlike working as an independent agent, being a part of a team allows for security. Splitting commission and working together takes some pressure off of you.
- Marketing Yourself Takes Time and Money – As mentioned above, one of the main benefits of a team is the ability to share responsibilities and money. Marketing yourself takes a lot of time and money to do well.
Starting Your Own Business – As an independent agent, you are starting your own business. Along with starting your own new business comes marketing yourself, building a website, accounting, and being your own administrative assistant.