Can Real Estate Agents Work Independently?
This question is frequently asked among real estate enthusiasts. To Answer this question, I am writing this article to get you through the detailed answer and the pros and cons of working independently.
Real estate agents can work independently without needing to work under any brokerage. However, practically it is more complex than it seems. Some certain legalities and regulations must be followed while working as an independent real estate agent.
I will walk you through the different aspects of working independently as a real estate agent. This will help you decide if this is the right path.
Can Real Estate Agents Work Independently?
A Real Estate Salesperson can only set up shop if they are associated with a Real Estate Brokerage. In order to get licensed, you must be sponsored by a brokerage.
The sponsoring broker holds your license and is responsible for your actions as an agent. If you were to work independently, you would need your real estate license.
Most people need to be made aware that you need a broker to get your real estate license. To get your license, you will first need to take an exam administered by your state.
After passing the exam, you will need to find a sponsoring broker. The sponsoring broker is the one who will hold your license and be responsible for your actions.
You must do more than just set up your real estate business and start working independently. You will need to find a broker who is willing to sponsor you.
Responsibilities as Independent Agent
As an independent real estate agent, you will be responsible for all aspects of your business. This includes finding your clients, marketing your listings, and closing deals.
You will also be responsible for paying expenses such as office space, marketing, and licensing fees. While you will have more control over your business as an independent agent, you will also have more expenses.
Independent agents also need to be very organized and self-motivated. Since you will not have a boss to answer to, you must be able to stay on top of your business and meet your goals.
Working as an independent real estate agent can be very rewarding, but it is only for some. If you are not organized and self-motivated, you may find it difficult to succeed.
Benefits of Working Independently as Real Estate Agents
There are several benefits to working independently as a real estate agent. One of the biggest benefits is having more control over your business.
Here are a few more benefits:
Freedom
As an independent real estate agent, you will have the freedom to work when you want. You will not be tied down to a 9-5 schedule.
You can set your hours and work around your schedule. This is a great benefit for those who have family or other commitments.
Potential for Higher Commission
As an independent real estate agent, you will have the potential to earn a higher commission. When you work for a brokerage, they will take a percentage of your commission.
As an independent agent, you can keep all of your commission. This can lead to a higher income, especially if you are a successful agent.
More Control Over Your Business
You will have more control over your business as an independent real estate agent. You will be able to make all of the decisions about your business, including what properties to list and how to market them.
You will also be able to choose your clients. This is a great benefit if you want to specialize in a certain type of property or client.
Personal Brand Recognition
As an independent real estate agent, you can build your brand. This can be a great benefit if you want to develop a long-term career in real estate.
Your brand will be associated with your name rather than a brokerage. This can help you to stand out from other agents and get more business.
Drawbacks of Working Independently as a Real Estate Agent
There are also some drawbacks to working independently as a real estate agent.
Expert Advice
One of the biggest drawbacks is that you will need access to expert advice. When you work for a brokerage, you will have access to experienced agents who can offer advice and help you grow your business.
As an independent agent, you will be on your own. You will need to find your resources and learn as you go.
Accountability
Another drawback of working independently is that you will not have anyone to hold you accountable. When you work for a brokerage, your broker will expect you to meet certain standards.
They will also provide support and resources to help you succeed. As an independent agent, you will be responsible for meeting your own standards and goals.
Benefits of Real Estate Teams for New Agents
Real estate teams can be a great option for new agents. When you join a team, you will have access to experienced agents who can offer advice and support.
Teams can also provide resources you might not have access to as an independent agent. For example,
Shared Leads
When you join a real estate team, you can access shared leads. This can be a great benefit if you are starting and don’t have many leads.
Flexibility
Another benefit of real estate teams is that they can offer flexibility. For example, some teams allow you to work from home. This can be a great benefit if you have family or other commitments.
If you are a part-time agent or just starting in real estate and want some break, someone in the team can work with clients while you are on vacation.
Expertise and Specialization
You can access the team’s expertise and specialization when you join a real estate team. For example, if you enter a team specializing in luxury homes, you can learn from and work with experienced agents.
This can be a great benefit if you want to specialize in a certain type of property or client.
Division of Roles
When you join a real estate team, you will be able to the division of roles. For example, some teams have an agent specializing in marketing, while others have an agent specializing in lead generation.
This can be a great benefit if you want to focus on a certain aspect of your business.
Administrative Support
When you join a real estate team, you can access administrative support. This can be a great benefit if you don’t want to handle the paperwork yourself.
For example, you will have someone to handle your appointments, paperwork, and marketing.
Drawbacks of Real Estate Teams for New Agents
Some drawbacks to joining a real estate team as a new agent exist.
Time off
Working solo gives you full control over your schedule. You can take time off when you want or need to without asking for permission.
However, when you join a team, you will need to coordinate your time off with the other team members.
Expert Advice
Having an expert in your field of interest can limit your advice to clients. For example, if you are interested in luxury homes but join a team specializing in first-time home buyers, you will not be able to offer as much expertise to your clients.
Accountability
Every action you take is monitored when you work for a brokerage. This can be a good or bad thing, depending on how you view it.
What is better? Join the team or work independently?
It depends on what you are looking for in a career. If you want the support of experienced agents and access to resources, then joining a team might be the best option.
If you want the freedom to work independently and set your hours, then working independently might be your best option.
It is important to weigh each option’s pros and cons before deciding.
However, most of the time, clients prefer to go with the team than an independent agent because of the benefits teams offer.
Wrapping up,
Real estate agents can work independently, but joining a team has benefits that an independent agent may not. It is better to research and then decide what suits you the best. Good Luck!
