Weighing Agency Work vs. Going Solo vs. Joining a High-Commission Brokerage
Incontestable UK Reality
The right path in real estate — be it joining an agency, venturing solo, or aligning with a high-commission brokerage — differs for everyone.
Truthfully, if this were the USA, some of us could be millionaires, driving Ferraris down Rodeo Drive. Yet, here I find myself, pedalling through the rain on an electric bike, vying against two leading agencies and highlighting our superior service. My aim, however, is not just routine work for a salary but securing a significant commission for myself upon closing a sale as a self-employed agent.
After coming across a post by Benji Weinberger today discussing the sustainability of agents accepting commissions below 15%, and in some instances even below 5%, especially while affiliated with large agencies, I felt compelled to share my insights. Having experienced the industry as an agent, a self-employed broker, and an independent, I believe it’s crucial to weigh in on this pressing issue.
Learning From The Best
Embarking on your career within esteemed agencies like Savills or Foxtons introduces you to essential skills and network building, despite the modest commissions. This foundational phase is pivotal for gaining the assurance to explore more rewarding avenues and building your network.
Under the leadership of its new CEO Guy Gittins, Foxtons has undergone a revival. The signature Minis have made a comeback, accompanied by young men in sleek dark suits, crisp white shirts, and impeccably styled haircuts. Known within Foxtons as “property negotiators,” they exhibit the focus and determination of young officers, confidently handling company car keys and engaging in transactions on their company phones.
Graduation day
Adding to this dynamic, many well-known senior agents and industry leaders have emerged from the Foxtons training ground, underscoring the agency’s role as a breeding ground for real estate expertise and leadership. Among them is Igor Griskin 〄 ᴀᴅᴠɪꜱᴏʀ, who has become a highly successful private advisor in the Prime Central Market.
To Stay or To Leave?
Crucially, understand that your triumph is attributed not to the agency’s prestige but to your dedication and capabilities. Transitioning to independence or connecting with a specialized firm like Moveli with James Giblin or The London Broker with Rupert Collingwood, which offer commissions as high as 80%, presents its own set of hurdles. Stepping out from an agency’s umbrella means embracing the challenge of finding support and visibility on your own, although these brokerages provide substantial backing against a monthly fee.
Also, consider updating your style from the traditional Foxtons appearance. As an independent advisor, embrace a look that says you’ve experienced it all in your career — think clean white sneakers, a sharp shirt, and sunglasses.
These platforms typically welcome seasoned agents, urging a proactive stance — not just waiting for leads but actively pursuing them.
New Hybrid are now showing up like eXp Realty, LLC cloud-based, agent-owned estate agency business with 500 agents in the UK with Jonathan Woods Real Estate eXp
Such a path requires determination, offering substantial rewards for the prepared. Success in this fiercely competitive arena relies on your sales acumen and your ability to gain visibility. Whether opting for a UK brokerage with lucrative commission rates or a US company offering international exposure, the strategy you adopt, the properties you sell, and your market approach are critical. Your real estate career will reflect your ambitions, experiences, and your commitment to personal growth.
Aligning yourself with a renowned firm, or a niche agency, or taking the plunge into solo ventures, as Harry Dawes did with notable success after many years with Knight Frank, demands flexibility, a strong network, and an acute awareness of what sets you apart.
The real estate journey varies significantly from one professional to another. Whether you’re freshly minted from real estate school or pivoting from another career like banking, your unique background influences your method and connections. Remember, working for someone else is to contribute to their vision — a realization vital for those aiming for independence.
A Ferrari without fuel or speeding in a Golf
Reflecting on my experience at RE/MAX, especially leading the New Homes desk, I encountered unique challenges and rewards. Primarily dealing with elite agencies, their attire of sharp blue suits, red ties, and refined English accents takes me back to my time in the City. There, amidst bankers lunching and brokers earning substantial sums, the narrative was much the same, albeit in a different profession
Despite Remax’s “less prominent” reputation in the UK compared to the US, my specialization in off-plan sales and years of experience allowed me to thrive, enjoying an 80% commission rate and annual earnings exceeding £250K — a stark contrast to the potential earnings at more prestigious names, which could be ten times less.
I came on board with a clear strategy for financial success. We secured £250 million in sales where others stumbled, succeeding in a competitive market by relying solely on our efforts. In doing so, we not only flourished on our terms but also provided stiff competition to industry giants like Savills, JLL, Knight Frank and CBRE.
This experience underscores the value of leveraging personal strengths and carving out your niche over mere association with a brand. Diverse backgrounds afford a competitive advantage in real estate, presenting unique perspectives and opportunities.
Deciding your course — whether to stay with an agency, venture out solo, or join a specialized brokerage — entails weighing the potential benefits against the freedom to fully utilize your talents and network. The real estate field offers a vast landscape for your aspirations, pushing you to identify the best setting to flourish, be it under a lesser-known name or seizing the chance to vastly increase your earnings through specialization.
Even with a 95% commission, the debate over the remaining 5% persists.
For me, the commission isn’t the be-all and end-all. It poses a question: would you prefer 80% of nothing, or 60% of something but with a higher volume of deals? At Re/Max, I was on an 80% commission, but the platform and CRM were lacking, and I found myself isolated, working alongside inexperienced agents. I had to build my own sales team and agents overseas from scratch. It’s a path that demands entrepreneurial spirit. Did I mention Brexit?
Marketing the Dream: The Role of Ego
Subsequently, I decided to strike out on my own, focusing on selling super prime properties in Belgravia, Chelsea, and Mayfair. My extensive network was a key asset, often allowing me to secure properties before they hit the larger agencies. However, this approach has its limitations in terms of scale and scope of collaboration.
Let’s be honest, it’s fantastic to stroll down Kings Road, enjoy a coffee at 11 am, and meet developer friends to discuss selling a £30M house in Belgravia. But let’s be clear, such sales aren’t happening monthly, or even every six months, depending on your area and network. I often say that selling 10 off-plan units in Greenwich could be more lucrative than that single Belgravia house, but, of course, the latter makes for a better story in Prime Resi. Thus, your 100% commission today won’t even cover the cost of a coffee tomorrow.
It was during this period that I encountered Daniel Daggers, a true pioneer in marketing and self-promotion, armed with his iPad and innovative techniques. Daniel is a testament to the power of personal branding, and I admire his journey with DDRE Global. Daniel had a strategy and was focused on establishing his brand, with success steadily approaching.
Being self-employed, especially when you’re handling £300M in stock pending exchange, and then seeing deals collapse at the last minute, requires resilience. It’s a high-stakes game that not only tests your mettle but also underscores the importance of adaptability and perseverance in the face of adversity.
Considering Remarriage?
Recently I’ve decided to join Nest Seekers International with Rubens Brotto. You might wonder, why join another brokerage? Aim for a 70% commission, instead of striving for 100% independently or aligning with a UK setup like Moveli. I appreciated Ruben’s vision, despite the significant work ahead and the somewhat chaotic nature, reminiscent of a child navigating puberty. Yet, I could discern the opportunities it presented, not just in London but on a global scale.
The solution is clear: I’ve realized the vital role of branding, teamwork, and the need for a worldwide platform to truly stand out in this industry. Additionally, their collaborations with Netflix and HBO for TV shows like “Selling the Hamptons” and “Million Dollar Listings” have been pivotal.
Nestseekers International
Just last week, during our Global Summit in New York, our CEO, Eddie Shapiro, shared his vision with over 2,000 Global Trusted Advisors. He articulated how Nest Seekers, or the Nest organization, has transcended the confines of a typical real estate brokerage to become a global lifestyle brand. Nest Seekers isn’t just about selling properties in the Upper East Side, Manhattan, or London; it’s about a philosophy of enjoying life, exploring the world, and indulging in experiences that bring joy, akin to what we desire for ourselves.
Let's see how it plays
Sotheby’s Approach: Carrot and Stick
In my view, the stick prevails. The concept of a hefty salary doesn’t quite fit in the UK as it might in the USA. Possessing a prominent name and an extensive portfolio doesn’t guarantee a sale — it ultimately depends on the individual, not the brand. Moreover, compare the motivation levels of someone earning a £400K salary to someone working solely for a 70% commission. My money’s on the commission-based individual. As mentioned before, the grass isn’t always greener on the other side.
Nobody is Perfect
Let’s be honest, it’s never going to be perfect because perfection doesn’t exist. After extensively researching every brokerage in both the UK and the USA for my startup project, examining their commission structures, global presence, software or portal offerings, and their fees, I’ve found that none fully meet my criteria. Ultimately, you have to make a decision based on your instincts and priorities
How about the Future?
The future for real estate agents is on the brink of a revolutionary shift towards complete autonomy and unparalleled efficiency. Imagine a world where you, as an agent, retain 100% of your commission, powered by an ecosystem that blends advanced AI technology with the expansive reach of global listings. This future is not just about financial freedom; it’s about harnessing the power of AI to predict market trends, generate leads, and manage client relationships with ease. Agents will navigate transactions with blockchain’s security, ensuring every deal is transparent and tamper-proof. As we move forward, the role of the agent will evolve, becoming more about guiding clients through a seamless digital landscape, where the complexities of real estate transactions are simplified by technology. This is a future where agents are not just participants but pioneers, leading the charge in a tech-driven real estate world.
That’s my perspective. If you have any thoughts or feedback, feel free to leave a comment.
Eric Corsaletti
Head of The Private Office Nest Seekers International Super Prime Division
Property Editor KNIGHTSBRIDGE Magazine
Eric Corsaletti @Mrmaybridge
