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Stuart Kaufman, MS, MBA
“The Real Estate Coach”
Winter 2005 - Volume 5, Issue 4
Q. Dear Coach:
I have heard that when an agent changes offices he/she can
expect to lose up to three months of wages. Do you have thoughts
or research that suggests what the cost is to change offices?
A. This is a good question since
many agents will change offices during their real estate careers.
I have not seen research on the costs of changing offices, so I
am going to take a step back and first look at the broader question
of WHY agents choose to change offices. Then address the potential
costs and how to avoid them.
So, why do agents change real estate offices?
The obvious answer is that agents change offices when they are
unhappy or dissatisfied with their current situation. When their
level of dissatisfaction reaches a high enough level, they make
a change. Here are some of the most common reasons my clients, and
brokers who I interviewed, indicate why agents change offices:
- Relationship with their manager – this
is the most common answer sited as to why agents move offices.
Agents want, and expect, their manager to provide them with the
tools, motivation, and supportive environment to grow both personally
and professionally. They want a manager that believes and cares
about them. When this is lacking, agents either leave real estate
or find a new manager.
- Level of professionalism – just like
your clients expect you to be professional in your dealings, you
want to work for a company and manager that treat you as a professional
and deal with you in a professional manner. When this is not present,
a move is imminent.
- Being around successful agents – we grow
when the people around us are at a higher level than we are. Being
in an office where the top agent does 12 transactions pre year
is not overly stimulating or motivating. As Jim Willner, Managing
Broker at the Kent North John L. Scott office states, “Agents
want to be on a winning team. Do you want to be a big fish in
a small pond, or be a small fish (that is growing) in a big pond?”
- Service quality from office staff – if
the support staff is not supportive or do not have a team mentality,
transactions take longer and are more difficult. Also, dealing
with difficult and uncooperative support staff is a mental and
physical drain. Who needs that?
- Level of educational and growth opportunities
– being in an office with little or no educational opportunities
or emphasis results in stagnation. To be competitive, you need
to change and grow.
- Financial arrangement – sometimes agents
change because they want to work for company with a desk fee,
instead of a split. Or visa versa.
- Location of office – one of my clients
moved so they could work at an office closer to their home. This
reduced their commute from an hour and a half each day, to 20
minutes. One client changed offices because she wanted a location
that was more visible in her community. Location, Location, Location!
- Name Recognition – a client changed from
a small, relatively unknown Real Estate office to a large, well-known
office. Since she was a relatively new agent, this helped her
credibility.
- A combination of the above – sometimes
it is not just one factor, but a combination that motivates an
agent to move to a new office.
What are some wrong reasons for changing offices?
- Not being willing or able to deal with your own issues and mistakenly
thinking that the solution is a change in offices. I worked with
a client who believed it was her broker who was holding her back.
The reality was that she was holding herself back. It was not
until we dealt with her own fears and limiting beliefs that she
was able to be more successful. She did eventually change offices,
but it was for the right reason.
- The grass is always greener syndrome. Jim shared that “Some
agents leave (the office), and then come back after realizing
that the grass is not greener on the other side of the
fence.” Be sure to do your homework before making a change.
Let’s move on to what the financial impact can be of changing
offices.
- The key to not losing business when you move offices is having
a strong personal connection with your Sphere of Influence. Period.
These are your former clients, friends, and other referral sources
who know you, like you and trust you. If you are about to change
offices, call every member of your Sphere and let them know you
are moving. Be enthusiastic and let your Sphere know how the new
office will benefit them (better or expanded service, location,
consumer educational materials, etc). Make it a positive! As Jim
states “Most agents are successful as a result of their
personal relationships with their clients (Sphere). The agent
is the main event, the office is secondary. When the agent is
excited, their clients will be excited.” So be excited about
your new opportunity!
- Different offices have different policies about agent’s
commissions when they leave during an ongoing transaction. You
should find out what your office’s policy is before making
a move so you can make an informed choice and not lose any commission
dollars.
- One of my clients successfully negotiated, with her new manager,
a 100% commission for the first six months to offset any cost
of moving to the new office. So, be creative and be courageous!
- Finally, it may actually be costing you money to stay in an
office with low performing agents or an unsupportive manager.
A change to another office will positively affect your earnings.
The bottom line is to work in an office that is filled with stimulating,
team oriented, enthusiastic, and successful agents
and that has a manager who believes his/her purpose is to help each
agent reach their full potential. Does this sound like your office?
If it does, then you are in a great place. If not, it may be time
for a change.
About the Author:
Stuart Kaufman, MS, MBA, is a Real Estate Coach who specializes
in helping Real Estate agents earn a 6-figure income working 40
hours or less per week. He resides in Washington State and is
a regular contributor to numerous Real Estate publications nationwide.
Got a question for the coach? Contact Stuart at coach@stuartkaufman.com
or 206-725-1584.
© Copyright 2005, Metamorphosis
Coaching. All Rights Reserved.
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