Have you ever wondered why residential agents may choose to switch brokerages? Why would a real estate professional just up and leave their previous brokerage to move their business to a completely new brokerage? If there's one profession that ought to appreciate how much work it is to move anything, it's an agent. Here are the five most compelling reason behind switching brokers.
Better commissions or splits
The most common catalyst for an agent switching real estate brokerages is a desire to net a higher commission per each transaction. Meaning, when an agent completes a transaction, they surrender less of that money to their parent brokerage or team.
New real estate agents are usually happy to take a lower split, since they have yet to establish their own business with a pipeline of clients. They will often work under the mentorship of other real estate agents who can bring in business and allow the new agent to cut their teeth in the challenging crucible that is the real estate industry.
Once an agent establishes themself, they will naturally want to surrender a slightly lower percentage of their earning to their current broker. This makes sense; after all, if they are the one bringing in the business and executing the transaction, why shouldn't they make more money? Notably, most agents bring their client data with them when they move.
Better support and resources
On the other hand, some agents may switch to real estate brokerages that offer more support and resources, such as training programs, marketing tools, and technology platforms.
Just as experienced agents may seek higher splits in a more hands-off environment, newer agents may change real estate brokerages to find a more nurturing setup. The average real estate agent may prefer to specialize purely in managing the transaction and not have the time or core competencies to devote to the myriad activities that modern deals. And if they are not open to hiring junior associates to handle these functions, then it makes perfect sense to move to a new broker that can handle everything else for them.
Better location
Agents may switch brokerages if they want to work in a different territory or if they believe that a different brokerage has a stronger presence in a particular market.
The old adage of real estate being all about "location, location, location" rings true for most real estate agents! Unlike commercial agents that can operate from out-of-state, residential real estate is extremely anchored to someone's physical proximity to property. If a agent themselves moves or seeks to focus on a slightly different type of property, they should consider a real estate brokerage that has an established presence in their target market. If their current brokerage isn't a clear leader, then the agent will find one that is.
Better culture
Agents may seek to switch real estate brokerages if they feel that the culture of their current brokerage is not a good fit for them, or if they believe that a different brokerage offers a better work environment.
Some companies may do the same thing and achieve similar success, but how they go about that business may be drastically different. Just how a brokerage operates may attract a certain type of professional, it may drive real estate agents away. Even though an agent is technically an independent contractor, their parent brokerage accounts for a large portion of their day-to-day activity. For any agent that wants to run a successful business, they need to feel comfortable where they work. If a new brokerage offers a better fit, then they will move.
Personal reasons
Agents may move to work under a new broker for a variety of personal reasons, such as a desire to work closer to home or to work with a particular group of agents.
Even though agents are known for living in their cars, in transit from property to property, they do spend a good chunk of their time in the office of their brokerage firm. If their commute is unmanageable, they tire of working under poor leadership, or they have some other reason, changing real estate brokerages is never out of the question. At the end of the day, a person's job is only one factor in their life, and it doesn't matter how much business support they get -- if they are unhappy they'll jump ship to a new firm.
Summary
Overall, there are many factors that can influence an agent's desire for switching brokerages. They might switch brokers to in search of an improved commission split, better support and marketing materials, new location, a different company culture, or some miscellaneous personal reasons. Whatever an agent's motivation, if other brokerages offer them a more desirable opportunity to make a living, they won't hesitate to leave their current brokerage.
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