How to choose a real estate brokerage: 7 factors

Your first brokerage decides who teaches you, how much of each deal you keep, and how hard it is to leave. Most new agents pick the first office that calls them back.

To choose a real estate brokerage as a new agent, score each option on 7 factors: total cost, training, broker access, culture, leads, technology, and contract terms. Get the full fee schedule in writing and run the math on a slow first year. The National Association of Realtors 2026 Member Profile found the typical Realtor closed 9 transaction sides in 2025, so plan for low volume.

This guide gives you the USRT Brokerage Scorecard and a side-by-side look at what 3 pay plans cost on a first-year income. You also get the questions to ask in a brokerage interview and the red flags that should end the conversation.

What are the main types of real estate brokerages?

The 4 main types of real estate brokerages are national franchises, independent (boutique) brokerages, virtual brokerages, and flat-fee brokerages, also called 100% commission brokerages.

A real estate brokerage is the licensed company that holds your license and supervises your work. Every new agent needs one. A new licensee must work under a supervising broker to represent buyers or sellers.

Independent firms are the most common home for agents. According to the National Association of Realtors 2026 Member Profile, 53% of Realtors are affiliated with an independent company.

Here's how the 4 types compare for a new agent.

Splits and fees vary by office, even inside the same brand. For a deeper look at each model, read our comparison of national vs. boutique vs. virtual brokerages. For brand-by-brand splits and caps, see our list of the best real estate brokerages for new agents.

What is the USRT Brokerage Scorecard?

The USRT Brokerage Scorecard is a 7-factor checklist that lets a new agent rate each brokerage from 1 to 5 and compare offices side by side.

Use it at every interview and add up the scores. The highest total wins, unless that office shows a red flag (covered below). In your first year, give extra weight to training and broker access. Those 2 factors decide how fast you close your first deal.

A few terms on the scorecard need a quick definition. Errors and omissions (E&O) insurance covers you if a client sues over a mistake in your work. A CRM (customer relationship management) system is software that tracks your contacts and follow-ups. If your brokerage doesn't include one, our guide to the best real estate CRMs for new agents compares the options.

How much does a real estate brokerage cost a new agent?

The cost of a real estate brokerage depends on its pay plan. On a first year of 4 closings worth $32,000 in commission, the brokerage's share runs from about $3,300 to $9,600.

A commission split is how your gross commission is divided between you and your brokerage. A 70/30 split means you keep 70%. A cap is the most a brokerage takes from your splits in a year. After you hit it, you keep 100% until your anniversary date. Your gross commission income (GCI) is your commission before any of that comes out.

The table below runs 4 closings at $8,000 in gross commission each through 3 pay plans.

Fee figures come from each brokerage's published fee schedule as of June 2026. Fees change often and vary by office, so ask for the current sheet in writing.

The flat-fee plan wins on paper. But the cheapest plan can cost you more if it leaves you without the training to reach your 4th deal. Some brokerages also run new-agent mentor programs that take a bigger share of your first few deals, so ask about that too.

Your own costs, like MLS dues and marketing, come out of what you keep. Our breakdown of the costs of working as a real estate agent covers them, and our guide to how commission splits work explains who pays what.

Is the highest commission split the best deal for a new agent?

No. The highest commission split is rarely the best deal for a new agent, because fees, caps, and missing training can cost more than the split saves.

Recruiters lead with the split. "You keep 100%" sounds like the best offer in the room. But a 100% commission brokerage still gets paid. You pay flat per-deal and monthly fees instead of a percentage.

Caps work the same way. At eXp Realty, the 80/20 split runs until you've paid a $16,000 cap. That means you'd need $80,000 in gross commission income in 1 year before you keep 100% (eXp Realty published fee schedule, June 2026).

Most first-year agents won't get there. A transaction side is one party's half of a sale. Representing the buyer counts as 1 side. The National Association of Realtors 2026 Member Profile found that the typical Realtor, with 13 years of experience, closed 9 sides in 2025.

In year 1, your real goal is closing deals at all. Pick the office that will teach you to close your first 5. Then revisit the split.

How do you know if a brokerage will train you?

A brokerage will train you if it can show you a written new-agent program, name who teaches it, and pair you with a mentor or broker who reviews your first contracts.

Ask to see the class calendar for next month. Ask how many new agents closed a deal in their first 6 months last year.

A mentor split is a share of your commission paid to an experienced agent who guides you through your first deals. It's worth it if the mentor shows up. Our guide to the difference between a broker, team leader, mentor, and coach breaks it down. If the office can't pair you with anyone, here's how to find a real estate mentor on your own.

Should a new agent join a team or a brokerage?

A new agent always joins a brokerage. A team is an optional group inside that brokerage that trades part of your commission for leads, coaching, and support.

Teams are common. According to the National Association of Realtors 2026 Member Profile, 21% of Realtors worked on a team in 2025, and teams averaged 4 members.

A team can get you into deals faster because the leader hands you leads. The trade-off is a smaller cut of each deal and less control over your own brand. Weigh both in our list of the pros and cons of joining a real estate team. Either way, start building your own sphere of influence on day 1. That's where your own leads come from.

What changed for new agents after the NAR settlement?

Since August 17, 2024, National Association of Realtors rules have required buyer's agents to sign a written agreement with a buyer before touring a home. Offers of buyer-agent pay can no longer appear on the MLS.

The multiple listing service (MLS) is the shared database agents use to list and search for homes. Under these rules, you'll explain your fee in writing before you show your first house.

That makes training on buyer agreements a real scorecard question. Ask each brokerage which buyer agreement forms it uses, who reviews yours, and whether it role-plays the fee conversation with new agents. A brokerage that skips this leaves you to learn it with a live client.

What questions should you ask in a brokerage interview?

The best brokerage interview questions cover cost, training, broker access, leads, and exit terms. Ask every office the same 8 questions so you can compare answers.

To set up an interview, call or email the managing broker. Say you're newly licensed and ask for 30 minutes. Interview at least 3 offices. Then ask:

1. Can I get your full fee schedule in writing?
2. Is there a cap, and when does it reset?
3. What does your new-agent training include, and who teaches it?
4. Who answers my questions during a live deal, and how fast?
5. Do you provide leads, and what split applies to them?
6. Which tools are included, and which cost extra?
7. How many new agents joined last year, and how many are still here?
8. If I leave, what happens to my pending deals and listings?

For more on what to ask and why, see our brokerage interview questions.

What are the red flags when choosing a brokerage?

The biggest red flags when choosing a brokerage are fees the recruiter won't put in writing, a broker you can't reach, and a contract that keeps your deals if you leave.

Walk away, or at least slow down, if you see any of these:

• The recruiter won't hand over the full fee schedule.
• You're pushed to sign the same day.
• The pitch is more about recruiting other agents than selling homes.
• Training is "learn as you go," with no schedule.
• The broker is too busy to meet you before you join.
• The contract claims your pending deals or adds an exit fee.

Before you sign, look up the broker's license on your state real estate regulator's website and check for any discipline.

The takeaway: pick the teacher first, the split second

Your first brokerage is a school that pays you. Score 3 offices on the USRT Brokerage Scorecard, get every fee in writing, and choose the one that will get you to your first 5 closings. You can always change brokerages later, once you know what you need.

Build the skills your brokerage won't teach

A good brokerage teaches you the paperwork. The agents who grow fastest also learn a system for prospecting, buyer and seller appointments, and goal setting. That's what our Certified Real Estate Specialist program covers in 10 chapters of on-demand video, taught by Los Angeles top producer Richard Schulman.

Start your 3-day free trial of Certified Real Estate Specialist