Choosing a real estate brokerage to work for is a real dilemma for new agents in NYC. They are confronted with two main types of firms to choose from.
Type 1: The traditional “brand name” full-service brokerage
The first type of real estate company is a traditional, “brand name” full-service brokerage that offers new agents just that, a brand name and an office space. Agents must pay for advertising, network and figure out on their own how to get their first clients. On top of that, agents will typically start at a 50% or less broker agent commission split, meaning they will pay half of each commission check for each deal they close to their brokerage. These larger brokerages typically put agents on a tiered commission structure, increasing the commission split agents receive up to 70% as they make more in commissions.
The biggest firms in NYC will typically max out agents at 70% once they’ve grossed between $300,000 to $400,000 in commissions on a rolling twelve month basis. Even though there may be comfort in working for a big brokerage that has perceived “brand value,” agents are for the most part completely on their own in kick-starting their business. With over 27,000 real estate agents in New York City, how do you expect to get your first client?
Type 2: The NYC 100% commission split firm
The second main choice of real estate company for new agents in NYC is the 100% commission split firm. These are typically one man shops with no real office offering very high commission splits (typically 70-90%) but with almost no support. The problem with most of these real estate companies is that they are pure middlemen, bundling a package of tools needed by agents and re-selling them to agents with no value added themselves.
You will see the markup in various ways: overcharging agents for professional errors & omissions insurance, charging desk fees, hidden transaction fees if you close a deal, technology fees etc. Typically, none of these costs will be mentioned. Sometimes they will even only mention the headline commission split percentage and nothing else. Those with slightly more scruples will mention a monthly running charge that agents must pay to them and list a few items that are included for that monthly “membership.” However, even the best of these traditional 100% commission split firms will omit hidden transaction, trade association and insurance costs.
And unfortunately for new agents looking for the best real estate company to work for in NYC, these traditional 100% commission firms also don’t provide new agents any business or clients to kickstart their business. As a result, even though the commission split is initially much higher, they are in arguably even worse shape than their fellow new agents due to the total lack of support and branding available at most of these traditional 100% commission split brokerages. It certainly doesn’t matter how high your commission split with your broker is if you don’t close any deals!
Fortunately for those seeking the best real estate company for new agents in NYC, there is a new option that combines high commission splits, the best tools and technology and introduces active client referrals for agents.
Never before have NYC agents had an opportunity to choose a brokerage to work for that combines the best of both worlds plus actual client referrals for new agents. At Mont Sky Real Estate, New York City’s most innovative brokerage, agents are able to obtain flexible commission splits up to 100% yet receive best in class technology, tools and support only available in the largest of brokerages. Moreover, never before have new agents had an opportunity to receive client leads at the beginning of their career!
At a large traditional brokerage, if an agent is lucky enough to work on a senior broker’s client, they will be lucky to keep 10% of the commission for “helping out.” Moreover, the senior broker will typically take over once the deal reaches negotiation stage. In contrast, Mont Sky agents have access to a proprietary “Lead on Demand” system where they are able to request a new client referral or lead whenever they are in need of a boost to their business.
Mont Sky’s NYC agents keep a minimum of 75% of their commission and up to 100% of their commission depending on the plan they choose. Given this innovative structure it is no wonder Mont Sky is consistently voted the best real estate company for new agents in NYC by members of the New York City real estate community.
Traditionally, NYC real estate agents have had limited, unfulfilling choices for where to pursue their career.
Many have stuck with the largest, brand name brokerages even after they’ve built up a substantial personal reputation and network of clients. Why? It’s for the lack of a better option. Once you start selling hundreds of millions of dollars of real estate, even the bigger brokerages will be open to negotiate higher commission splits. However, for those who have just embarked on their careers looking for the best real estate company for new agents in NYC, there is a different option today to help kick-start their careers.
We all know the best source of new clients come from referrals from previous clients. However, that is a classic chicken and egg problem for new agents. Mont Sky Real Estate is the only brokerage that will actively provide agents with leads and client referrals. Management is exclusively focused on just that, management.
However, with its unique value proposition, Mont Sky doesn’t only make sense for those looking for the best real estate company for new agents in NYC. Even experienced agents are almost always open to new clients and referrals. Can you think of an agent who’s been too busy to take on a new client? We certainly never have.