It’s no secret that real estate is a volatile industry. Agents come and go all the time, and brokerages have to work hard to keep their top talent. In this blog post, we will be discussing the 11 most common reasons why agents leave their brokerages. Keep in mind that this list is not exhaustive – there are many other reasons why agents might choose to move on. But these are some of the most common ones.
If you’re a brokerage owner, read on to see if you need to make any changes! And if you’re an agent, it might be helpful for you to know what these reasons are so that you can decide whether or not leaving your current brokerage is the right decision for you.
11 Reasons Why Agents Leave Their Brokerages
- Money
- Values
- Bad Colleagues
- Support
- Feeling Under-Appreciated
- Lack of Advancement Opportunities
- Inadequest Training
- Not Keeping Up With Technology
- Lack of Clarity on Policy and Procedures
- Changing Market Segments
- Managers/Brokers/Team Leaders are Your Competitors
1) Money
First, let’s get the obvious answer out of the way. The single most important reason why agents move brokerages is that they are not making enough money or see an opportunity to make more money. Real estate agents are business owners, and serious business owners make their decisions based on math and logic, not just purely emotions.
If an agent is not making a good living at their current brokerage, they will naturally be drawn to another one that can offer them a higher commission split or a lower desk fee.
This reason is especially relevant in today’s market, where many brokerages are struggling to stay afloat. If you’re an owner and you’re not offering your agents a competitive commission split, then you can expect them to jump ship as soon as a better opportunity comes along.
On the other hand, if you’re an agent and you’re not making enough money at your current brokerage, don’t just assume that it’s because of the brokerage itself. You might need to take a closer look at your own business practices to see where you can make some changes.
Are you spending too much money on marketing? Are you not charging enough for your services? Are you not putting in the necessary work to find new clients?
If you see that you are doing all aspects of your job to the best of your extent and still not making the money you want, then it is probably time to start shopping around for a different brokerage with a better compensation plan.
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2) Values
Values determine who we are, our values are the fundamental building blocks of our personal identity. And if there’s anything that we like to protect more than our paycheck, it’s our identity.
That’s why it’s so common for agents to change brokerages when their values are no longer aligned with those of their current one. Maybe the brokerage is too aggressive in its marketing tactics and the agent feels like they’re losing sight of what’s important to them. Maybe the brokerage owner is asking the agents to do things that go against their personal values, such as falsifying information or cheating their clients.
Whatever the reason may be, if an agent’s values are not being respected by their brokerage, they will likely leave in order to find one that better aligns with their beliefs.
It’s important for brokerages to be aware of their agents’ values and to do their best to respect them. If you can’t offer your agents a commission split that they’re happy with, at least try to give them the freedom to work in a way that is true to themselves.
Respecting your agents’ values not only makes them more likely to stay with your brokerage, but it also makes it a lot easier for agents and brokers to work together more harmoniously and efficiently.
3) Bad Colleagues
Humans are social beings. It is in our nature to want to belong to a group and to cooperate with others as a team. This is especially true in the workplace, where we spend the majority of our time.
That’s why it’s so common for agents to leave their brokerages when they are surrounded by bad colleagues. Maybe the other agents at the brokerage are unsupportive or competitive instead of cooperative. Maybe the brokers are unprofessional and do not respect their agents.
Whatever the reason may be, if an agent is not enjoying their work environment, they are more likely to leave.
It’s important for brokerages to create a positive and supportive work environment for their agents by only recruiting the right agents to their company. This will make them happier and more productive, which in turn will result in more sales and commissions for the brokerage.
If you’re an agent and you’re not enjoying your work environment, it might be time to start looking for a new brokerage. There are plenty of brokerages out there that will respect your values and provide you with the support that you need to be successful. Don’t be afraid to shop around until you find the perfect one for you.
After all, agents can use a little comradery from their fellow agents after a hard day of dealing with bad prospects or needy clients.
4) Support
Although real estate agents are independent entrepreneurs, they should still expect their brokerages to provide them with enough support so that they can run their business smoothly.
If an agent feels like they are doing all the work themselves and their brokerage is not providing them with any support, they will likely leave.
It’s important for brokerages to provide their agents with the necessary tools and resources so that they can succeed. This includes things such as a company website, templates for marketing materials, leads lists, a CRM database management system, a follow-up system, and staff members for live and in-person troubleshooting.
If an agent feels like they are not getting the support that they need from their brokerage, they should speak up and let someone know. The sooner the problem is addressed, the sooner it can be fixed.
Support is key in any business relationship, especially when it comes to real estate. Brokerages that provide their agents with the necessary support will have a much easier time retaining them.
5) Feeling Under-Appreciated
For many, recognition is worth more than money. Babies cry for it and men die for it.
It’s no secret that agents work hard. They put in long hours, often sacrificing their own time and money, in order to serve their clients, all while building a business for their brokerage.
Let’s face it. Although an agent’s effort is rewarded through the financial success of building their own business, a good portion of a real estate agent’s hard work, especially over a long period of time, goes towards building the broker’s business.
Without agents, brokerages go out of business.
So it’s only natural for agents to be appreciated by their brokerages. Unfortunately, this is not always the case.
Many times, agents feel under-appreciated by their brokerages. They may feel like they are not receiving the recognition that they deserve for all of their hard work.
If an agent feels under-appreciated, they are more likely to leave their brokerage and find a new one where they will actually be valued for their worth.
It’s important for brokers to show their agents some appreciation. This could be in the form of a higher commission structure, verbal recognition, or even opportunities for agents to earn equity in the brokerage they work at.
Agents who feel appreciated by their brokerages are more likely to stay with them for a long period of time.
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6) Lack of Advancement Opportunities
In any career, the opportunity to grow and advance is important. This is especially true for real estate agents who are looking to move up in their field and eventually become brokers themselves.
If an agent feels like they are not being given the opportunity to grow and advance within their brokerage, they will likely leave and find a new one where there are more opportunities available.
It’s important for brokerages to provide their agents with advancement opportunities so that they can continue to move up in their careers.
This could include things such as training and development programs, mentorship programs, opportunities to become recruiters or managers, and the ability for agents to earn equity in the brokerage they work at.
Agents who feel like they are being given the opportunity to grow and advance within their careers are more likely to stay with their brokerage for a long period of time.
Brokers should make sure that they are providing their agents with the tools and resources necessary so that they can move up in their field. If not, they will likely lose them to another brokerage.
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7) Inadequet Training
In order for real estate agents to move up in their careers, they will need to constantly improve their skillsets and add new skill sets to their personal toolbox.
Unfortunately, many brokerages do not provide their agents with any additional training past the new agent phase to help them improve their skills. This can lead to agents feeling stagnant in their careers and eventually leaving their brokerage for one that provides more training opportunities.
It’s important for brokers to provide agents of all levels at their company with adequate training so that they can continue learning and improving no matter where they are in their careers. A big mistake that many brokerages make is by only creating training programs for brand new agents so that they can learn the business, then leave the rest of the development to the agents themselves.
Brokerages that provide their agents with all levels of dynamic training are more likely to keep their mid-level and top producing agents around for a longer period of time.
Agents want to feel like they are constantly learning and progressing in their careers, and if their brokerage isn’t providing them with the necessary tools to do so, they will leave for a new opportunity.
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8) Not Keeping Up With Technology
Whether you like it or not, in 2022, technology rules the business world.
Businesses that don’t keep up with the latest technology trends and innovations will eventually fall behind and be left in the dust.
This is especially true for real estate brokerages. If a brokerage doesn’t have a strong online presence or provide their agents with the tools and training necessary to develop their own online presence, they are likely to lose agents to another company that does.
It’s important for brokers to keep up with technology and make sure that their brokerage is providing agents with the tools necessary to stay ahead of the curve.
If not, not only will they see a decline in their revenue due to the lack of efficiency in their business, they will also likely lose their agents to another company that does.
Technology can not only increase the efficiency of your business systems such as having access to a wider market share through digital and social media marketing, but it can also condense time for your employees, agents, and clients.
In world where Cryptocurrencies, NFTs, and even The Metaverse dictates the future of our global economy, real estate agents are finally realizing that it’s time for their real estate brokerages to begin evolving with the times as well.
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9) Lack of Clarity on Policy and Procedures
Systems are key in business. Especially when it comes to efficiency and speed. And in a red-hot industry like real estate, speed and efficiency are extremely crucial for agents who are at the top of their game.
However, when agents are working within a system that is confusing or not well-defined, it can slow down the process of closing transactions and even lead to lost deals.
This is especially common for new agents who are still trying to learn the ropes of the business. They need clarity on policy and procedures from their brokerage in order to help them avoid any costly mistakes.
Many brokerages do not have a clearly defined policy and procedure manual, which can lead to agents being confused as to what steps to take next.
Agents need to feel confident in the systems that they are working within. If they don’t, they will look for another brokerage that provides them with more clarity.
Clarity on policy and procedure is key for a smooth-running business.
Brokerages need to make sure that their policies and procedures are well-defined and easy to understand for all of their agents, regardless of experience level.
If not, they will see an increase in the number of agents leaving their company.
10) Changing Market Segments
As we mentioned earlier, real estate agents move up in their careers all the time. And a key way for an agent to do that is by expanding their expertise and providing their services for new segments of the market.
In recent years, the industry has seen a lot of residential real estate agents take an interest in learning how to broker and close commercial or farm and land transactions.
However, most brokerages are still focusing on residential real estate and aren’t providing the necessary training or tools for their agents to be successful in other market segments.
This can lead to agents leaving their brokerage in order to find a company that is more specialized in the market segment that they are interested in and can offer their agents support on a greater variety of transaction types.
If you are an agent who has already conquered the residential world of real estate looking for a new challenge in the commercial or luxury space, you will probably grow tired of your brokerage if they are only offering support for basic 1-4 unit single-family home transactions and should be looking for new companies that can help you through those transactions with the proper tools, resources, and support.
11) Managers/Brokers/Team Leaders are Your Competitors
There is no shortage of competition in real estate. In 2021 alone, an estimated 60,000 new real estate agents entered the industry.
In this type of competitive environment, it’s crucial for agents to have a good relationship with their managers, brokers, and team leaders.
However, sometimes these relationships can be less than ideal.
One of the most common reasons why agents leave their brokerages is because their managers, brokers, or team leaders are also actively producing sales agents and are competing with their agents instead of helping them.
This competition can lead to a lot of tension between agents and their brokers.
Brokers and managers who are also active in personal production deal a detrimental blow to the agents at their company. As a broker, it is your job to support your agents through their transactions and give them the tools and training for success so that you can make a percentage of their gross commission on every sale. If you are actively in production, competing with your agents, then how can you possibly help them without a conflict of interest?
If you are a real estate agent that is a part of a brokerage where your managers or brokers are also in production, consider changing brokerages immediately, especially if they are competing with you for clients. Although this is not addressed enough, broker-owners and managers who also actively sell real estate have a major conflict of interest with literally every single agent at their brokerage.
As an agent, you need to feel like you are part of a team that is working together towards a common goal. Having brokers and managers in your office competing against you for deals can create an inharmonious business relationship between the brokerage and the agent.
Leaving your brokerage because of a conflict with your manager or broker is one of the more difficult decisions to make, but it’s important to remember that you are not alone in this situation. Many agents have faced these same struggles and have had to move on in order to find a company that can better support them in their business.
Conclusion
There are a number of reasons why agents leave their brokerages. Some of the more common reasons include lack of support from management, competition from managers or brokers who are also in production, and feeling like they are not part of a team.
If you are an agent that is experiencing any of these issues, it might be time to consider leaving your current brokerage and finding a new one that can better support you in your business. Although this is not an easy decision to make, it is important to remember that you are not alone in this situation. There are countless other agents who have gone through the same thing and have had to find a new brokerage that can better meet their needs.
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