If you’re an independent real estate agent, you understand both the perks and some of the setbacks of running your own brokerage firm. Building your own practice from the ground up can be especially rewarding though, as long as you have the right tools and assets to assist you in the process. But why don’t other agents leave their current firm? Most firms are larger and have a number of agents working within the firm. While they might not have as much freedom and leeway to make their own decisions or to go into all markets and territory, there are a number of reasons why agents stay with their current real estate firm. Here are a few of those reasons why those firms have high real estate agent retention rate.
Reasons Brokerages Have a High Real Estate Agent Retention Rate
A Successful Firm Has Successful Leadership
An established, successful firm is not going to reach its peak without successful leadership. They understand the market, the ebb and flow of the real estate industry. They know how to work with all kinds of clients and how to work with all kinds of agents and thereby increase the chances of real estate agent retention. While it is possible to learn some elements of becoming a great leader there are other aspects that simply come from within. When an agent works for a firm with an excellent leader they will become less likely to leave because they fully trust the vision of the leader. In many ways, they trust the vision of the leader more than their own.
One of the top reasons why an agent ends up leaving a firm is because they do not trust the leadership of the firm. They believe they can do the job better, and they have seen some negative outcomes stem from decisions made by the heads of the firm. This simply illustrates the importance of having a quality, inspirational and successful leader at the head of the firm. Everyone else within the brokerage will feed off of it.
Support From Other Agents
One of the main reasons why agents typically do not leave their real estate firm is they receive support from others within the firm. While there often is some kind of a competitive element within a firm between agents there is a natural supportive element at play as well. This is because all of the agents understand what it’s like to go through a dry spell or dealing with difficult to sell properties. In the more successful real estate firms there is a family atmosphere that simply can’t be replicated when a person works on their own.
This isn’t to say an independent agent is unable to receive this kind of support, but often times they will need to seek it out from outside of their private brokerage firm and it isn’t immediately available. And if the agent needs to do something for the betterment of the firm, they can’t rely on someone else’s help.
An Agency Has Reputation
Reputation is critical to success in the real estate industry. Because buyers (and especially sellers) deal with moving properties that often serve as the largest one-time investment of the property owners, people want to place their trust into an agency with a strong reputation. An established firm will likely have this strong reputation.
This is one of the most important questions someone considering a move away from their firm needs to ponder. It isn’t whether or not they are a good agent or if they can run their own independent firm. It is usually whether they can survive, grow, and eventually thrive, without an established reputation in the local community. For many, it’s easier to remain with the firm and the reputation it has generated over the years.
The real estate world is in constant motion. A single ripple in world economics can have lasting effects on local real estate. As has been the case in recent decades, real estate bubbles can burst, recessions can hit, and financial hardships are a very real thing. When all of these issues strike it often hits the real estate business first. People with less money are less likely to go out and buy a house. If a housing bubble bursts they might not want to pay what current owners are asking, because the market says the house isn’t worth what the owner is asking.
The fact of the matter is a successful real estate brokerage firm understands that fluctuations happen and have the ability to adapt and go with the flow. These established firms have been through most situations before. They also know how to read the tea leaves and forecast potential upcoming fluctuations. The ability to do this makes it easier to prepare the firm for any potential shifts that are upcoming. When someone decides to become their own real estate agent and work as an independent firm it puts them at greater risk during these fluctuations.
If they have never weathered an economic storm before they may not know what to do or what to expect. Due to this, agents are more likely to stay with their firm as they have a bit more protection than if they are out there in the open, as their own independent agent.
The majority of housing sales a real estate agent makes comes from referrals. When an agent is part of a firm they have already established relationships with hundreds of families throughout the community. This makes it easier to bring in new clients as previous clients recommend the agency. When starting out as an independent agent the individual will need to built up all of these relationships from the ground up, which can take years (if not longer). The built in relationships of a firm make staying with the firm a valuable opportunity as it increases the chance of previous clients coming back into the fold or recommending their friends and family members.
Giving Yourself a Real Estate Agent Retention Advantage
Whether you currently work for a firm or you’re an independent real estate brokerage and you’re looking to increase your client base and your referrals, RealProcity is the answer. RealProcity offers you city to city referrals and access to a wider net of potential how buyers and sellers than what you would have had access to just on your own. It doesn’t matter if you’re just starting out or you’re an established player in the local real estate community, it is important for you to do what you can to generate potential as many leads and referrals as possible. So discover exactly what the service can do for you by heading over to RealProcity to check it out.