The rise of new technology has transformed the real estate industry. Many of these changes are positive. For example, starting a career in real estate has never been easier. One emerging trend in today’s digital age is the opportunity to work for an online real estate brokerage.
Whether you’re exploring a new career in real estate or thinking about switching from a traditional brokerage, it’s essential to evaluate the advantages and disadvantages of working for an online real estate brokerage. Let’s dive into the pros and cons to help you make an informed decision.
Key Takeaways
- Online real estate brokerages offer agents the flexibility to set their own schedules and typically provide more competitive commission splits due to reduced overhead costs, allowing for higher earning potential.
- Agents working with online brokerages gain access to advanced tools like CRM systems and virtual tours, helping them work more efficiently and stand out in the market.
- The lack of in-person networking, direct supervision, and mentorship in online brokerages can be a drawback, especially for agents who rely on face-to-face guidance.
- Agents need to be comfortable with technology and working independently.
What Is an Online Real Estate Brokerage?
An online real estate brokerage is a digital platform that allows real estate agents to conduct business primarily through virtual tools and technology rather than from a traditional brick-and-mortar office. These brokerages provide agents access to resources like online marketing, transaction management software, and virtual meetings, enabling them to work remotely. This model often offers greater flexibility, lower overhead costs, and broader market reach, making it an attractive option for agents looking to streamline their operations and maximize productivity.
Examples of online real estate brokerages include Redfin and eXp Realty.
Pros of Working for an Online Real Estate Brokerage
There are significant benefits to working for an online real estate brokerage.
1. Flexibility
One of the most appealing aspects of working for an online brokerage is the flexibility it offers. Agents can set their own schedules, allowing for a better work-life balance. Whether you’re balancing family obligations or seeking more control over your time, the flexibility of an online brokerage can suit various lifestyles.
2. Competitive commission splits
Online real estate brokerages often provide more competitive commission splits than traditional brokerages. With reduced overhead costs, these brokerages can offer agents higher earning potential. For those focused on maximizing income, this financial advantage is a strong reason to consider joining an online brokerage.
3. Salary and benefits
Unlike some traditional brokerages that operate on commission-only models, many online brokerages provide a base salary and benefits like health insurance and retirement plans. This financial security can ease some of the uncertainty associated with commission-only structures, giving agents stability and peace of mind.
4. Technological advancements
Online real estate brokerages are leading the way in tech innovation. Agents gain access to advanced tools and resources that enhance productivity and client experiences. Features like CRM systems, virtual reality tours, and data analytics allow agents to work more efficiently, stand out in a competitive market, and keep up with industry trends.
Cons of Working for an Online Real Estate Brokerage
While online real estate brokerages have grown in popularity, 88% of real estate agents work as independent contractors through a traditional brokerage. Here’s why traditional brokerages continue to be the norm.
1. Limited in-person training and networking
Networking is crucial in real estate. One downside of working for an online brokerage is the reduced in-person training and networking opportunities. Traditional brokerages often offer mentorship programs and regular networking events. In contrast, online brokerages may rely more on virtual resources, which can be less effective for agents who thrive on face-to-face interactions.
2. Fewer “done-for-you” services
Another consideration for someone considering working for an online real estate brokerage is the support you’ll receive. While some offer strong technology platforms and marketing tools, others may require agents to handle more responsibilities independently. This can be a challenge for those who prefer a higher level of assistance with administrative tasks.
3. Lack of direct supervision and support
In an online brokerage, agents might experience less direct supervision and support compared to traditional offices. Without the physical presence of a managing broker or team leader, some agents may feel isolated from peers and superiors. This lack of in-person guidance could slow professional development and growth. Without regular check-ins, agents who are not self-motivated may find it harder to stay on track.
4. Potential technology challenges
While online brokerages leverage technology to streamline work, adapting to new tools and platforms can be challenging. Agents who are less tech-savvy or resistant to change may struggle in this environment. Technical issues or downtime with essential systems can also impact productivity, and without strong IT support, troubleshooting can become frustrating.
Is Working for an Online Brokerage Right for You?
Some agents will thrive in an online brokerage, while others may prefer the environment of a traditional brokerage. Ultimately, it comes down to your work style, preference for autonomy, and comfort with technology. Here are a few key takeaways to consider:
- Assess your preferences: Think about whether you prioritize flexibility and independence or prefer structured support and mentorship.
- Research thoroughly: Look into online brokerages’ commission structures, training programs, technology platforms, and company culture. Read reviews from current and former agents to get a sense of their experiences.
- Stay adaptable: The real estate industry constantly evolves, and online brokerages are no exception. To thrive in this competitive field, be open to learning new skills and embracing emerging trends.
Related Article: Choosing a Real Estate Brokerage: What Every Agent Needs to Know
Working for an online real estate brokerage has benefits, but it’s important to weigh the trade-offs before making a decision. Evaluate which option best aligns with your personal and professional goals to find the right fit for your real estate career.
Are you ready to begin a rewarding real estate career? Colibri Real Estate School offers comprehensive pre-licensing courses and continuing education programs to support your success. Explore our courses today and take the first step toward a new career.
