Switching Real Estate Brokerages: A Seamless Transition Guide

Considering a switch? Here's how to move to a new brokerage without disrupting your business.

Deciding to change real estate brokerages is a significant decision, often driven by a desire for better support, resources, or a more suitable work environment. While this change can be positive for your career, navigating the process seamlessly is crucial to minimize disruption. Use this comprehensive guide to equip you with the knowledge and steps necessary for a smooth transition.

Before You Begin:

1. Self-Assessment:

• Identify your needs and goals: What are you looking for in a new brokerage? Is it a higher commission split, stronger training programs, or a specific company culture? Answering these questions helps you target your search.
• Review your contract at your current Brokerage: Understand what happens with any Active Listings or Pending transactions you have.  Do you get to move your active listings to your new brokerage?  Will your commission payout adhere to your standard split? Are there any leads or referrals that you will need to leave?  If you are leaving a team make sure to review that agreement as well, for example there may be a non compete clause. 
• Scrub your Database: If you are using your current brokerage’s CRM confirm you can export your contacts.  Go through your contacts and make sure they are up to date.  Delete anyone you don’t intend to communicate with going forward. 

2. Finding the Right Fit:

• Gather referrals: Talk to colleagues, friends, lenders, attorneys and title & escrow reps for trusted recommendations.
• Research and compare: Explore options based on factors like commission splits, training and support, marketing resources, company culture, and niche focus.  Narrow your options to 2 or 3 brokerages to interview.
• Interviewing potential Brokerages: Remember you are interviewing them as much as they are interviewing you.  Talk to brokers that are part of the organization.  Talk with the administrative staff and any other “point of contact” people for the brokerage.  Find out what their onboarding process looks like and how long it takes.  Get a copy of their independent contractor agreement so you can review it and ask what you should bring to your onboarding appointment should you decide to join their firm.

Communicating the Change:

3. Notify Your Current Broker:

• Provide formal notice: Give them a written notification of your decision
• Maintain professionalism: Keep the conversation respectful and avoid negativity 
• Releasing your License: In Washington state you can release your license yourself through the Department of Licensing.  The Designated Broker at the brokerage you are leaving will receive an email notifying them that your license has been removed from their firm.  Your license will immediately go into “inactive” status.  This step should be done only after you have an onboarding appointment with your new brokerage.

Transitioning to Your New Home:

5. Meet with the onboarding person at your new brokerage: You should bring your laptop to your onboarding meeting and have your bank information for the account you want your commission payments to go to.  If you have an LLC set up you will need to have your EIN handy.  Take advantage of the upcoming firm training sessions or events.  Get involved and connect with your new colleagues.
6. Transfer Your License and Listings:

• Activating your License: In Washington the Designated Broker or an administrator will send you an email invitation to join their brokerage through the Department of Licensing.  Once you accept your license will be in Active status under your new firm.
• Consider in-process transactions: Discuss the best course of action for in-process transactions with the old brokerages.  In Washington, if you have Active listings when you are removed from your old brokerage’s roster in the MLS the listing is immediately transferred to the Designated Broker.  If you are permitted to transfer them to your new brokerage the Designated Broker will have to request via email that the staff at NWMLS (Washington) transfer the listing to the Designated Broker at your new brokerage.  Then your new Designated Broker can transfer the listing to you.

7. Update Your Marketing Materials:

• Reflect your new affiliation: Update your website, business cards, listing signs, open house signs, social media accounts, Google My Business and other marketing materials to reflect your new brokerage.  Follow brokerage and Department of Licensing guidelines.

8. Inform Your Clients:

• Be transparent: Inform your clients about your move and explain how they can reach you after the transition.
• Build excitement: Launch your new branding like you would launch a new listing hitting the market.

Remember:

• Professionalism is key: Maintain a professional demeanor throughout the entire process.
• Maintain positive relationships: Avoid burning bridges with your current broker; fostering positive professional relationships benefits your network.
• Embrace new opportunities: See this change as a positive step towards your career goals.