Virtual Real Estate Brokerages: Are They Your Best Choice?

As with many industries over the years, the real estate business also evolved towards the use of technology. This was at a more significant pace during the COVID-19 pandemic. Many professionals turned to the digital world to keep their jobs, making virtual real estate brokerages an up-and-coming trend.

Working for online real estate brokerages became a competitive option because of the freedom and flexibility they can give. However, brick-and-mortar companies still maintain their strength.

The most crucial choice for real estate agents, especially the new ones, is the right brokerage firm to start their career with. Now, the option is not only which one but also whether it is online. Are virtual real estate brokerages right for you? Keep reading to decide.

What Are Online Real Estate Brokerages?

Online real estate brokerages work like regular brokerages but are based in a virtual environment. Instead of in an office, they organize their work remotely using video conferences, chats, or other software. They are also known for their powerful online communities and various virtual tools to facilitate buying and selling real estate, such as virtual tours of properties and online contract signing.

Pros and Cons of Virtual Real Estate Brokerages

While this technological trend may seem very attractive at first glance, it’s important to consider all the pros and cons before taking the big step and deciding it’s for you. Let’s start with why it is so popular.

Benefits of Online Brokerages

• Flexibility: Without the restrictions of a brick-and-mortar office, cloud-based brokerages allow agents to set their schedules and work from home, a very valuable option for those who want a better work-life balance.

• Online community: They have a large community of agents and brokers to tap into, making it an excellent opportunity to connect with other professionals in the field.

• Higher commission: Online brokerages usually have lower costs. For example, you save money when you don’t have to pay for physical space. And that means higher commission potential for agents, a very enticing benefit.

• Salary: Another important benefit of virtual real estate brokerages is that many offer a base salary besides the commissions, unlike traditional ones, mostly set on a commission-based system.

• Optimized paperwork: Contracts and general paperwork are more efficient thanks to online tools; this saves time.

• Latest technology: Access to cutting-edge tech is indeed a very enticing prospect, especially if it helps you do your work better. Some of the digital tools available for agents are data analytics, advanced CRM systems, virtual tours of property, and more.

Disadvantages of Virtual Brokerages

• Technological challenges: High tech also means a higher learning curve to understand it. Some people may need help adapting to the new tools, especially those less familiar with online real estate trends like paperless transactions. On the other hand, virtual doesn’t mean perfect either, and technical issues can impact the work sometimes.

• Limited face-to-face interactions: As you may guess, working online means most interactions are not in person, which could be challenging for communication, networking, and training new agents.

• Less direct supervision: A virtual environment makes it more challenging to get guidance and proper work supervision from your superiors, making you feel less motivated.

• More tasks: Depending on each online real estate brokerage’s resources, you could do less or more work alone and without minimal support, like marketing. Consider this if you need or prefer more support in your day-to-day work.

• Fees: Some virtual brokerages require a monthly fee regardless of the agent’s work, which can be a massive setback for agents who are less productive or don’t close deals very often.

Who Are Virtual Brokerages Best for?

Deciding the right brokerage model for you depends greatly on your personal preferences, lifestyle, education, and career expectations.

But as guidance, we can tell you that online brokerages work best for experienced agents because they already have all the training and connections they may need to succeed in the field. New agents may need more direct support and feedback from colleagues or superiors and the extra tasks they need to do or learn by themselves.

Even so, it depends a lot on your ability to work online, be independent, stay motivated, and adapt to new technological tools.

Here are some aspects you should consider to know if online real estate brokerages are right for you:

• Preferences and priorities: What do you value more? Consider if mentorship and supervision are better for you or if you prefer to work with more flexibility and autonomy because of your lifestyle.

• Do your research: Learn how online real estate brokerages work, read reviews, and talk to people who work for them.

• Earnings: Inform yourself about commissions, salaries, and forms of payment in various online real estate brokerages, and then compare them to traditional ones. Which one benefits you the most?

• Stay updated: You never know how the industry may evolve, so even if you are not interested right now, keep track of trends in the virtual brokerages; it may be handy someday.

Summing-up

Choosing your real estate brokerage model, virtual or traditional, is a big step in your career path, so you should take this decision seriously. Every brokerage type has strengths and weaknesses; consider all of them first.