How to Tell Your Real Estate Broker You Are Leaving
Leaving your real estate brokerage can be a difficult decision. You want to make sure that you do it the right way, so that you don’t burn any bridges, can protect your reputation, and maintain good relationships with the people who have helped you along the way.
In this article, we will discuss the best practices for telling your real estate broker that you are leaving your brokerage. We’ll provide a road map for how to leave your brokerage, walk through each step of the process, and give you some tips on how to make it as smooth as possible.
Follow these guidelines, and you’ll be able to leave your brokerage without any drama!
How to Tell Your Real Estate Broker You Are Leaving Their Brokerage
- Be Sure of Your Decision
- Have a New Brokerage Ready
- Look at Your Contract
- Collect Your Current Data
- Keep Your Decision To Yourself
- Tell Your Current Clients
- Notify Your Broker
- Don’t Burn Bridges
- Taking A New Opportunity
1) Be Sure of Your Decision: Are You Ready to Leave Your Brokerage?
The first step in the process of leaving your real estate brokerage is to make sure of your decision that are ready to leave your brokerage. Before you take any steps, make sure that you have weighed all of your options and that this is the best decision for you.
Leaving your brokerage can be a big decision, and it’s not one to be taken lightly. Sometimes agents think that the grass is greener on the other side, but they quickly realize that wasn’t the case.
Make sure that you are leaving your brokerage for the right reasons – because you’re unhappy with how things are going or because you’ve found a better opportunity – rather than because you’re frustrated or feeling resentment. If you’re making this decision based on emotions, it may be wise to wait and give yourself some time to calm down before moving forward.
If you are currently experiencing any frustration or discontent at your current brokerage you may want to speak with your broker or team leader first and express those concerns to them before you make the decision to move. Let them know how you are feeling and ask them if there is anything they are willing to do to help.
Many times, problems between agents and their brokers can be solved with a little communication and doesn’t require an agent to overhaul their entire business. Although that’s the case, sometimes agents are better off moving their business to a new opportunity that can actually give them the life that they want.
Once you are sure of your decision, it’s time to start planning the logistics of your move.
2) Have a New Brokerage Ready
Although real estate agents are independent business owners, they are still required to associate their real estate license with a brokerage in order to be able to sell any real estate. This means that when you leave your brokerage, you will need to have a new brokerage ready to go if you don’t want any lags in your business.
It’s important to have this lined up before you tell your broker that you are leaving, as they may start taking steps to remove you from their system. If you don’t have a new brokerage ready, it could cause some major delays in your business and even lose some of your clients.
If possible, try and find a brokerage that is a good fit for you – one with similar values or goals and can provide you with the lifestyle that you want – so the transition is smoother. You don’t want to feel like you are starting over again at square one with no one to support you and later down the line end up in the same situation that you are now, getting ready to leave yet another brokerage.
When choosing a new brokerage, also make sure that they are licensed in the state where you plan on working. It’s also important to check their references and do your research before signing any contracts. A good way to do that is by contacting agents that have worked for or are working for that brokerage.
Once you have chosen a new brokerage, you need to be sure of how the onboarding process works and how long it takes.
Different brokerages have different ways of onboarding agents. This usually includes filling out paperwork, attending any training and orientations, and getting set up with company systems.
The onboarding process at most brokerages can take anywhere from a few days to a couple of weeks, so make sure that you factor that into your decision-making timeline. Agents should be prepared to move over immediately after they have left their current brokerage.
If you are not ready or able to move over immediately after leaving your current brokerage, you run the risk of being an inactive agent for a period of time which could cause some major setbacks in your business.
Now that you have a new brokerage ready, it’s time to start the process of leaving your old one.
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3) Look at Your Contract
The first thing that you need to do after you’ve decided that you are going to leave your brokerage for sure is to review your independent contractors agreement that you have signed with them.
This document is important as it outlines the terms of your departure and any fees or non-compete clauses that may be in place.
Some brokerages will require you to pay a fee for leaving, which can range from a few hundred dollars to thousands of dollars. Others may have a non-compete clause in place where you are not allowed to work with their clients or within a certain radius of their business for a set period of time.
It’s important to know what these clauses are before making any decisions so there are no surprises down the line.
If you have any questions about what is outlined in your contract, don’t hesitate to reach out to an attorney for clarification.
Once you have reviewed your contract and know what the terms of your departure are, you can now start taking steps towards your transition to your new brokerage.
4) Collect Your Current Data
While some brokerages owns the exclusive rights to all of the leads that their agents have generated, most of the time, the agents own all of their leads and their information. If you are unsure whether you or your broker owns your book of business, make sure you refer back to your contract with your broker and find out for sure.
If you are currently using a CRM that is owned by your brokerage, you will want to download and transfer any leads and their contact information from your current CRM to an excel spreadsheet or a CRM that you currently own. If your brokerage uses a third party CRM that you plan on using for the future, you may not have to take this step, but it would wise to do so just so you can be sure that you have access to all of your leads and that no information is lost.
This is important as you will want to have all of your client data in one place in order to keep in contact with them even if you are no longer with your old brokerage.
If your current CRM does not allow for exporting leads, reach out to the support team and ask how you can download a copy of your data before leaving.
It’s also a good idea to save any emails or notes that you may have about each lead onto this spreadsheet or CRM.
Some brokerages will not release agent contact information to agents who have left their company, so having all of this information saved and easily accessible will help ensure that you don’t lose touch with any of your clients.
The last thing that you want to do is to start from scratch when you have a book of business that you’ve been working on for some time.
5) Keep Your Decision To Yourself Until You are Absolutely Sure of Leaving
Real estate agents should keep the decision to move brokerages to themselves until they are absolutely sure that they are going to leave their brokerage.
As tempting as it may be to tell all of your colleagues, clients, and broker about your decision to leave, you should hold off on doing so until you are absolutely sure that you are leaving.
One of the risks of telling people before you have actually left is that you may end up changing your mind and then find yourself in an awkward position where you have to backtrack on what you said.
It’s also important to remember that some brokerages have a non-solicitation clause in their contracts which means that agents are not allowed to actively solicit any of their former colleagues’ clients after they have left.
The last thing that you want is to get in trouble with your old brokerage for contacting clients after you have already left.
Once you have made the decision to leave and have taken the necessary steps to ensure a smooth transition, then you can start letting people know about your decision.
But until then, keep it to yourself!
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6) Tell Your Current Clients
Once you are sure that you are going to leave, you should begin informing your clients, broker, and other agents that you are moving brokerages.
The first people that you should tell about your decision to leave your brokerage are your current clients.
Since real estate listing agreements are signed between the client and the brokerage and not with the agent, it is important for them to know that you are leaving that brokerage so that you will no longer be their agent if your broker refuses to release the listing to your new brokerage.
Many agents choose to write a letter or email to their clients explaining why they are leaving and what their new contact information will be.
If you decide to do this, make sure that you keep a copy of the email for your records in case there are any questions or concerns from your clients down the road.
Another option is to give each of your clients a call and explain the situation personally. Whichever method you choose, make sure that you are clear with your clients that you will no longer be their agent if your broker doesn’t release your listing agreements to your new brokerage.
It’s also important to let them know that you will still be available to answer any questions or concerns that they may have even if you can’t be their agent anymore.
If you have a relationship with any of your current buyers or sellers that goes beyond just being their real estate agent, they will refer you to their current network to help them with their transactions as well as use you as their agent for any future real estate transactions.
If you have potential clients who are ready to list their home but have not signed a listing agreement yet, make sure to let them know that you are moving brokerages so that they don’t accidentally sign a listing agreement with your old broker.
7) Notifying Your Broker of Your Decision
After you have informed your clients and potential clients that you are leaving your brokerage it’s time to let your broker know that you are planning on leaving. This conversation is usually the hardest one for agents to have.
There are a few ways to go about having this conversation. You can either do it in person, via email, or over the phone. Whichever way you choose, make sure that you are respectful and clear with your broker about why you are leaving.
Here are a few tips for having this conversation:
– Be honest and upfront . Don’t try to sugarcoat things or hide your reasons for leaving. The more transparent you can be, the better.
– Explain how you feel . Let your broker know that you appreciate all they have done for you, but that you are no longer interested in working with them.
– Stay positive . Even though this may be a difficult conversation, try to maintain a positive attitude and avoid being confrontational.
– Be respectful . Remember that your broker has been instrumental in your real estate career – thank them for their help and express your gratitude before exiting the relationship.
After you have had the conversation with your broker, it is important to stay in touch with them even after you have left their brokerage. If they have any questions or concerns about why you left and what your future plans are, make sure to address them honestly.
If you are a top producing agent, your broker might try to get you to stay by making you a better offer on your current terms. This can include benefits like free marketing, leads, assistants, a private office, or even better commission splits.
Whatever your broker offers, it’s important for you to remember that you have already told them you want to leave and can never take that back. If you decide to stay for the benefits, things can take a turn quickly because your broker will might hold resentment towards you, or they will be looking for ways to run their business without having to rely on you since you are “flight risk” to them.
If your broker offers you any additional incentives in order to try to get you to stay. Ask yourself why these weren’t being offered to you before you expressed your desire to leave.
8) Don’t Burn Any Bridges
Now that you have notified your broker that you will be leaving , it is important to remember not to burn any bridges. You never know when you might need their help again in the future.
Be professional and courteous until the very end, and if possible, keep things confidential to the public until all of your clients have been notified.
Don’t talk badly about your broker to other agents or post anything negative on social media. This will only make things difficult for you down the road.
If you do have a parting of ways that is less than amicable, try to avoid contact with each other as much as possible and don’t air your dirty laundry in public.
When all is said and done, just remember that this is business – and sometimes relationships just don’t work out. Burning bridges, especially publicly, will only make you look bad and ruin any chance of future collaboration
9) Taking a New Opportunity
Leaving your brokerage can be a scary thing, but it’s important to remember that you are not the first agent to do this.
Agents should never feel guilty or bad about wanting to take a new opportunity that can help them build the lifestyle they want. After all, real estate agents are professional entrepreneurs, and it is an entrepreneur’s job to look for new opportunities that make them more money, give them more free time, and reduce their stress and anxiety.
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Knowing When You Should Move Brokerages
Even though leaving your brokerage may not always be the best solution to a real estate agent’s problems, there are still some instances when it might be time for you to move brokerages.
If you feel like you have outgrown your current brokerage or that they are no longer a good fit for you, then it’s time to start looking for a new one.
Your relationship with your broker should be a two-way street – if it feels like they are not giving you what you need, or that they do not respect your business decisions, then it’s probably time to find a new home.
Another sign that it might be time for a change is if you are feeling burnt out or unhappy with your job. If this is the case, it’s important to take some time for yourself and reassess your career goals.
If you have tried everything to make things work at your current brokerage but still feel unhappy, it might be time to move on.
Leaving your real estate brokerage can be intimidating, but with the right planning it can be a smooth transition. By following these best practices, you can minimize any potential drama and ensure that both you and your broker have a positive experience as you move on to bigger and better things in your career and your life!
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