According to the National Association of Realtors, as of Nov 3, 2022, the median length of time an agent has been at their brokerage is 5 years. Agents move around and get out of the business.
If you’re asking yourself, “How do I get out of this brokerage?” Here’s a tip, rules, and a 7-guide to telling your real estate broker you are leaving.
Table of Contents:
Begin with the end in mind
If you are leaving your broker, there are a ton of reasons why you should leave on good terms. Here are a few:
- Doing cross sales with your broker or other realtors from your past office
- Getting referral fees
- People already talk shit, don’t give them more of a reason to
Even if you hate your broker, the reasons above should be enough to encourage a civil breakup. To make sure you don’t unleash a shit-storm of drama, follow these rules:
Rules for Switching Real Estate Brokerages
Rule 1. Don’t tell anyone before it’s official
The last thing you want, is to tell someone and word gets back to your broker. It would be an easy assumption that you are trying to recruit other agents to go to the new brokerage with you. The safest option is to tell your broker FIRST and keep everything under the radar.
Rule 2. Try to leave on good terms
As previously mentioned, you want to leave on good terms in the event you do cross sales or referrals together in the future. Worst case scenario, your broker throws a tantrum and takes it personally… That’s not someone you want to do business with in the first place.
Rule 3. Don’t let emotions get the better of you
If your broker does make it personal, or if your reasons for leaving are emotional, do your best to control them. Communicate only when feeling level headed.
How to prepare to leave your broker?
“Failing to plan, is planning to fail.” – Said by someone wise. The next few steps should be done BEFORE telling anyone you are leaving.
Step 1. Make sure it’s time to leave your real estate brokerage
It’s important that your decision to leave your broker isn’t emotional or sporadic. There are generally 3 reasons people will leave their current brokerage:
Outgrew them
If you have learned everything your current broker can teach you, I would leave. Doing the same thing and staying the same size is BORING. If you want to surround yourself with people who are going to force you to level up, and BE MORE – You should schedule a call with me.
No longer a culture fit
Whether your broker is making some changes, you just realized the environment sucks, or it has ALWAYS sucked – it’s probably time to look for a new brokerage.
Financial Reasons
I was on the phone with a ReMax franchise owner interviewing him to see what their office did for their agents. He said most ReMax franchises charge between $1,800 and $2,800 per month. His office ONLY charges $100/mo and has an 80/20 commission split with NO cap.
His major selling point was training agent how to do lead generation. This can be learned on youtube for FREE. Compared to my brokerage, this is a horrible deal… The more franchise owners I interview, the more I wonder how they are still in business
Step 2. Look at your Independent Contractor Agreement
All brokerages are going to be different. Some will let you take your leads with you, some will let you take client data with you, some will ask you to leave EVERYTHING in the CRM.
This can have a HUGE financial impact on your business. Hence why this step is so important and part of “Preparing to leave your broker”. It can take months to plan appropriately and execute.
Step 3. Time your Resignation Properly
Whether you could lose leads, current listings, or a ton of money spent in real estate marketing, timing the move of your real estate business is critical. Agents leave brokerages all the time, but there is a better time to do it.
To make this as easy as possible, when are real estate transactions the slowest? I’d say that is the best time for agents to go to a new firm. The answer? According to Redfin Data, the least amount of homes are sold in January. In many states, it takes 1-2 months to close on a property once under contract. That means December is actually the slowest month when it comes to writing offers.
Thanksgiving to Christmas right? We all knew that one.
If you can’t leave your managing broker at that time, I can personally help you plan. There are a TON of variables when it comes to leaving your broker.
How to make the switch from current real estate broker to new broker?
Step 4. Write a Real Estate Agent Resignation Letter to your Broker
The easiest way to tell your broker you are taking your real estate license to another brokerage is with a Resignation Letter. This simply states that you’re leaving. I suggest keeping it short and sweet. Here is an example from ChatGPT4 you can use, word for word:
[Your Name]
[Your Address]
[City, State, Zip Code]
[Email Address] [Phone Number]
[Date]
[Broker’s Name]
[Real Estate Brokerage Name]
[Brokerage Address]
[City, State, Zip Code]
Dear [Broker’s Name],
I am writing to formally inform you of my resignation from my position as a real estate agent at [Real Estate Brokerage Name], effective [last working date, typically two weeks from the date of the letter].
My decision to resign has been a difficult one, as I have enjoyed working with you and the team at [Real Estate Brokerage Name]. However, after much consideration, I have decided to pursue a new opportunity that aligns with my long-term goals.
I want to express gratitude for the guidance, support, and opportunities you have provided me during my time at [Real Estate Brokerage Name]. I have learned a great deal from you and everyone else, which has set me up for the future. It has been a pleasure to work with such a talented team of professionals.
I will do everything in my power to ensure a smooth transition during my remaining time here. Please let me know how I can be of assistance in transferring my ongoing responsibilities, projects, or client relationships to other team members.
Once again, thank you for your understanding and support during this transition. I wish [Real Estate Brokerage Name] and the entire team continued success, and I hope our paths cross again in the future.
Sincerely,
[Your Name]
Your broker will still probably want to talk to you. If they don’t want to talk to you, they either suck at their job, or the feeling was mutual.
Step 5. Download Real Estate Agent Data (If possible)
You have probably spent a lot of time, energy, and money on your data base. As a real estate professional, your data base can be a really big deal. This is likely the source of a large portion of your real estate commission checks. Therefore, Data = Money. Don’t leave any extra money with your soon to be previous brokerage… legally of course.
Step 6. Tell your Clients
Depending on your brokerage, you may be able to take listings and buyers with you. Unfortunately, this will require agreements/paperwork to be filled out… But at least you’ll be bringing business with you!
Clients will understand and it should be an easy conversation.
After Leaving your Real Estate Brokerage, what do you do?
By this point, you have a good idea of how to plan, what to do, and what NOT to do when switching brokerages your first time… and hopefully your last!
In psychology, there is something called the ‘Peak-end Rule’. This rule suggests that people don’t remember the average of the amount of time you spent with them, but rather the peak, and last impressions you made on them.
This is why reaching out one last time to compliment your previous broker is so important.
Step 7. Write your Previous Broker a Handwritten Thank You Letter
Here is an easy little sample you can copy. You can thank ChatGPT:
[Your Name]
[Your Address]
[City, State, Zip Code]
[Email Address] [Phone Number]
[Date]
[Broker’s Name]
[Real Estate Brokerage Name]
[Brokerage Address]
[City, State, Zip Code]
Dear [Broker’s Name],
I wanted to express my gratitude for the support and guidance you provided me during my time at the brokerage.
Working with you and the team has been a life-changing experience, and I appreciate you. The lessons I learned at [Real Estate Brokerage Name] will undoubtedly serve me well in my future.
Thank you once again for your understanding and support. I wish you and the entire team continued success.
Warm regards,
[Your Name]
How I told my broker I was leaving
Due to experiences at my previous firm, a couple of friends and I decided to leave. I didn’t do it the right way… but I didn’t care at the time. For more info about this, you can read ‘Why I left KW’.
It was May 2019 and I literally signed up with eXp Realty without saying anything… No warning at all. After I was onboarded to eXp, I told my broker I was done and switched my team to eXp. I proceeded to close out everything that was under contract at Keller Williams and started putting transactions through eXp immediately.
We didn’t slow down for a second.
Of course, if KW was different, I would’ve waited and gotten my shit together first.
My final thoughts on breaking up with your broker
The real estate industry is always changing, as is life. If you are in a similar position as I was, you don’t have anything to worry about when switching brokerages. If you’re somewhere that is a little or a lot more picky, slow down and come up with a plan. Finding the right brokerage can be time consuming. I’ll leave you with some resources that will help you find the right broker for you.
Five Pillars is a Movement of real estate agents building REAL businesses and REAL wealth alongside peers. Sound like we’re a fit? Schedule a call with me
