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Indie or not indie? The independent brokers Kofi Nartey, Terrence Murphy and Sarah Richardson answered this question during the Indie Broker Track Session for the Connect crowd on Wednesday.
Each broker said the decision to become independent should not be taken lightly and depends on several factors including how much you want to scale your business, what markets you want to serve, leadership and management skills, and the willingness and ability to enter Building a team and a brand from scratch.
« If you’re a broker owner and you’re not feeling innovative and unsure about interviewing technology and it just feels very, very overwhelming, I think franchising could be a really good solution for you. » stated Richardson, the CEO of Tru Realty in Arizona. « The franchisor put all of these thoughts out of the way and really helped you build a business. »
On the other hand, she said, “If you don’t feel like you need this [guide] and you want to be nimble, want to go to markets and not be pigeonholed in certain areas, then maybe it is better to be independent to be. «
Murphy said his journey to independence began eight years ago after he left Keller Williams to start TM5 Properties, a luxury agent in the heart of College Station in Texas. Since then, TM5 Properties has grown to 65 real estate agents who have generated nearly $ 1 billion in sales.
“I was just a single agent. I wanted to be able to pan and be more nimble, « said Murphy of the decision to leave KW. « With independence, I see the value that you can grow when you think like an entrepreneur, really understand who you are, are able to do research, and really try to develop a local value proposition. »
« That gave me independence, » he added. « It also gives me the opportunity to expand, and we’re preparing to expand and find expansion partners throughout the state of Texas. »
For Richardson, their real estate journey began in 2008 as a commercial real estate agent turning to investor repairing and flipping properties. After Richardson became frustrated with agents and brokers who did not understand « assignments, nominations, off-market transactions, and the speed of off-market deals », he decided to start Tru Realty.
« Tru Realty really started out as an investment-based brokerage firm, and I realized very quickly that I was doing the work for other brokers when I was listing my own properties, » she said. « They didn’t know how to stand up, they didn’t know how to negotiate, and they really didn’t even know what was in the contract. »
“So I realized that there was a window of time to really legitimize Tru Realty and make it more of a broker who owned agents’ licenses,” she added. « We’ve focused on that since then, and now we have 125 agents nationwide, three valley-wide locations in the Phoenix market, and we’re definitely growing across the state. »
Although Murphy, Richardson, and session host Kofi Nartey have had immense success in the indie brokerage space, they said it is a difficult journey that requires a lot of teamwork – the opposite of what some agents consider solo.
Richardson said learning to delegate has been one of the biggest keys to her success, and has enabled her team to grow beyond residential and real estate management, as well as commercial, wholesale and luxury real estate.
« I have a director who runs each and every one of these departments on behalf of Tru Realty because there’s no way I can manage each of these departments effectively, » she said. « We have selected people who are experts in the field to lead and lead and they are almost a resource for other new agents or agents just getting into real estate. »
In addition to building an all-star team, Murphy says setting up systems is a critical step in creating a stable and scalable broker. If you’re not sure where to start, he suggested consulting several independent brokers and reading real estate sales books like Gino Wickman’s Traction.
« If you’re a single agent and you always feel like you’re everywhere, not having this franchise framework may not be the way to go, » he said. “I love the journey, building things and being an athlete. Whatever you achieve tomorrow, you want to get better. I just like the process. «
Next, Richardson, Murphy, and Nartey said corporate culture and finding the right agents and employees is the turning point between a successful independent broker and a broker on the path to failure. Richardson said the # 1 mistake was being too lax with hiring standards and focusing on quantity over quality.
« Some of the challenges we’ve seen are getting an agent to see the value of a big box broker, » she said. « So in the beginning you just want someone with a pulse who you think can sell real estate. »
Richardson and Murphy said it was important to resist the urge to hire every agent and instead think about an agent’s work experience, work habits and philosophies, personalities and goals, and how they fit your corporate culture.
« You need to take a step back and look at your brand and how it is represented, » said Richardson. “What kind of agent would you like to work with you? And here you start looking at the core values and you start looking at what your real agent looks like. «
« I’m a high-flyer, I want to compete with everything and I’m looking for people with the same attitude, » added Murphy. « We bring really competitive hungry people, regardless of their experience, age, background, and really train them to be top producers. »
Finally, all three brokers said broker owners need to commit to innovation and invest in creating a tech stack that allows their agents to focus on what matters most, namely serving buyers and sellers. Richardson and Murphy said they have a careful process for choosing third party vendors and enjoy the freedom to switch vendors if something goes wrong.
« I’m always connected with other broker-owners and I want to know what the best things are that they use. When you’re independent, you can get out of certain arrangements, right? » Murphy said. « Now you don’t want to have whiplash injuries where you just try every new shiny object. »
« But at the end of the day, you can put together your own proprietary software and not feel like you’ve spent millions and millions of dollars on it, » he added.
Richardson agreed, saying a commitment to innovation is critical to the success of an independent broker, as evidenced by the coronavirus pandemic and the overnight impact on property logs.
« I’m really proud to be as innovative as possible, » she said. “During the pandemic, we really had to turn face to face [and] we’re still doing 20 percent virtual transactions at Tru Realty where our agents like us need to create trust and rapport through the screen right now. «
« Everyone’s not supposed to be up front, and that’s fine, » Murphy said of what the past year has proven. « It’s okay to go franchise, it’s okay to work with someone like me and Sarah and say, » Hey, how can I be a part of your ecosystem to help you grow what you do ? «
« Finding that balance is what I would encourage people to do, » he added.
Do Brokers Make More Money Than Real Estate Agents?
For starters, real estate agents make more money than realtors on average. According to the U.S. Department of Labor Statistics, the average salary for a real estate agent is $ 75,910. To put this in perspective, the average real estate agent’s salary is $ 59,630, which is 20 percent less.
Can a realtor sell a home?
Agents work for brokers; You are licensed to sell real estate, but you cannot operate independently. Some brokers work directly with home buyers and sellers, while others have employees to work for them. … Usually the fee a seller pays a broker is 6 percent but this can vary.
Are Real Estate Agents Rich?
According to a survey of 1,758 real estate professionals conducted by ActiveRain, 22% of real estate agents made less than $ 35,000 a year and only 21% made $ 100,000 or more. This is a far cry from a « rich » profession.
Can Real Estate Agents Make Millions?
Unlike W-2 jobs, a commission-based job like a real estate agent or broker has unlimited income potential. Some agents make over a million dollars a year. You will receive income again for what you have invested in effort and time. … Commissions are usually paid by the property sellers and are legally negotiable.
What is an Independent Real Estate Agent?
Becoming a real estate agent is a step above a real estate agent. A broker generally has more training and expertise than an agent, but not always. A real estate agent can work independently or hire real estate sellers to work under them.
Can a broker work independently?
Brokers can work under a broker while overseeing other agents (usually referred to as broker associate), or work independently while owning their own business (broker owner). While working independently, they might decide to hire real estate agents to work under them in order to become more profitable.
Can a real estate agent work from home?
Yes, real estate agents can, and many do, work from home. Others prefer to work in the office, although they have the option to work from home. … They make a living helping buyers and sellers complete a property exchange. Real estate agents are paid through commissions, which means that they are essentially working for themselves.
Can a Non-Broker Own a Real Estate Company?
A somewhat murky area of the real estate business is the idea of the « Rent-a-Broker ». In many cases, when leaving a large real estate agent to start their own business or real estate management company, Independent Realtors must work with someone else with a broker license to act as …
How do I start an independent real estate brokerage?
11 Steps to Starting a Successful Real Estate Agent
- You have to be licensed. …
- Research your competition. …
- Determine your budget. …
- Write a business model & amp; Business plan. …
- Determine your legal structure. …
- Build your brand. …
- Register your company. …
- Find funding.
Is It Difficult to Start a Real Estate Business?
Starting a real estate business won’t be easy, but with the right preparation it will be worth the work. Best of all, there are multiple resources in small business systems that can make the learning process easier and more efficient.
Which Real Estate Franchise Is The Best?
|franchise||US offices||Staff & amp; estate agents|
|Softens real estate||462||14,200|
|Better homes and gardens real estate||343||11,364|
Should I start my own real estate agent?
By controlling their own marketing, customer care, and other aspects of their business, real estate agents can essentially operate as small business owners. However, if your goals are bigger and you want to run a bigger business, consider starting your own brokerage firm.
How Much Do I Need to Start a Real Estate Business?
When starting a real estate company, only a small amount of money is usually enough. Many entrepreneurs started their real estate business for less than $ 1,000. However, don’t make the common mistake of just calculating startup costs.
Is It Worth It To Be A Broker?
One of the greatest advantages of being a broker is that you are running out of money. Sure, when you work as an agent, you can make more by selling more. However, when you become a broker, just because you are a broker you will automatically receive a higher commission. As a broker, you can work for yourself as a broker.