Finding the best real estate brokerage to work for in Canada is very important whether you are new to the business or a seasoned realtor. The brokerage you choose to work for can have a large impact on your level of success. This is why it is very important to do extensive research on prospective real estate brokerages you may be considering to work for.
Important Considerations When Choosing A Real Estate Brokerage To Work For in Canada
The Commission split is one very important factor when choosing a real estate brokerage to work for. There are several different commission structures offered by various real estate brokers. On the sale of a home typically the commission is split between the buying agent and the selling agent. After this commission split, then comes the split between the agents and their brokers. The amount of commission the realtor ends up with is before taxes and expenses are deducted. Typically most real estate agents are paid on commission, however, there are a few real estate brokerages that do offer a salary, but they are far and few between. It is also important to find out what the other fees are that the brokerage may charge you like desk fees, etc.
The brokerage atmosphere is also another very important factor. As a realtor, you need to decide if you would like to work for a smaller family-run brokerage that is more intimate, or a big box franchise brokerage. Typically with a big box franchise brokerage, you are pretty much left to fend for yourself. However, with a smaller more intimate brokerage you tend to work as a team supporting one another. Also working for a big-box franchise there are a lot more rules and regulations, whereas an independent brokerage you have more freedom to run your business the way you like.
Reputation And Support
The brokerage reputation is also quite important. During your brokerage research try googling homes for sale in the community you are interested in and see what brokerages pop up. This will be a good indicator of their market presence. A brokerage with a high market presence will tend to offer you more leads. Many of the reputable brokerages tend to mentor and offer a lot of support to their agents. When realtors are first starting out in the business it is important to find a good real estate brokerage to work for that offers a lot of support as you will have many questions and will require a lot of guidance during your first year. As previously mentioned the commission split is only 1 part of the important factors when deciding which real estate brokerage to work for.
Real Estate Brokerages In Toronto, Ontario, Canada
There are three organized levels of real estate brokerages in Toronto. These include:
the Federal level is known as CREA, an acronym for Canadian Real Estate Association. The provincial-level is RECO, an acronym for Real Estate Council of Ontario, and the Toronto board known as TREB, an acronym for Toronto Real Estate Board.
The top 5 Toronto brokerages are:
- Right At Home Realty
- Royal Lepage Signature Realty
- Homelife Landmark Realty
- Chestnut Park Real Estate Ltd.
- Harvey Kalles Real Estate Ltd.
These 5 Toronto brokerages ranked highest in dollar volume.
Why Realtors Change Brokerages
Many realtors starting out in the industry seldom stick with the first brokerage they work for. The reason for this is they have chosen the wrong one. Brokerage assessment prior to joining their team is vital. Choosing an agency in Toronto presents 3 options, which are:
- Virtual Brokerage
- National Franchise
- Boutique Brokerage
Every real estate brokerage is different in some way and presents its own pros and cons. Important factors to become a successful realtor are:
- Commission Split
- Home Leads
- Running Expenses
These types of brokerages are large companies that allow smaller brokerages to use their branding. These franchise brokerages must follow the rules and regulations as set out by the large company’s head office and are often independently owned.
Benefits Of A Franchise Brokerage
There are many benefits to working with a franchise brokerage. The first and foremost is brand recognition. This will present the realtors with instant credibility. Many prospective buyers and sellers are very familiar with the big brand name franchise brokerages and will instantly place their trust in you. Another benefit is the fact that these national franchise brokerages have many offices in several other cities that you can make use of. The benefit of the brokerage having several offices is the fact you can move your business easily if you choose to do so. High technology support and training support is also a huge factor when working for a franchise brokerage.
Benefits Of A Boutique Brokerage
Boutique brokerages are much smaller than franchise brokerages. This will present realtors with a more intimate and atmosphere and more individual attention. Much time is spent mentoring and coaching new agents. With a boutique brokerage there will be less lead competition as the brokerage is much smaller. Boutique brokerages focus on teamwork and promote camaraderie and togetherness, whereas larger franchise brokerages you are pretty much on your own.
These types of brokerages are becoming more and more popular, especially for experienced realtors. Due to the COVID-19 pandemic, many more realtors have relied on virtual technology. Working for a virtual brokerage has many advantages for experienced agents which include:
- Higher commission splits
- Better Tech tools and support
- Lower desk fees
- A higher level of independence
List of The Best 9 Real Estate Franchise Businesses in Canada for 2020
- Exit Realty Corp International
- Propertyguys.Com Inc
- Proper Measure
- Century 21 Canada Limited
- Charlwood Pacific Group
- Maxwell Realty Inc.
- Real Property Management
- Royal LePage Real Estate Services
- Sutton Group Realty Services Ltd.
Top Boutique Brokerages In Canada
- Page & Percival – Toronto, West End, Ontario
- Jason TangTO – Toronto, Ontario
- Facilities Commercial Realty – Ottawa, Ontario
- ThinkTorontoHomes – Toronto, Ontario
Exp Realty is a great virtual brokerage that allows realtors to get away from the brick and mortar brokerages. Agents can expect 24/7 technical support, with ample access to marketing, training, and lead generation tools. Agents are also paid a percentage of the gross commission income which other real estate professionals that the agent has brought on board to the company.