Having discussed how to pass your New York State Real Estate Exam, the subsequent step in obtaining your New York real estate license is to select a sponsoring broker.
Finding a sponsoring broker is one of the most important steps toward getting your New York real estate license as they will act as your knowledge and training resource during your first year in real estate.
Read on to learn more about how to choose a sponsoring broker, where to find information about sponsoring brokers, and how to prepare for your interviews.
What is a sponsoring broker?
New York State law requires all real estate salespersons to work under a sponsoring broker. A sponsoring broker in New York is a licensed real estate broker who ‘employs’ agents and associate brokers. However, New York real estate agents are not employed by their sponsoring broker in the traditional sense, as they are technically independent contractors.
Being an independent contractor means you will be responsible for determining when, where, and how you work, as well as paying your own taxes.
What does it mean to be sponsored by a broker in NY?
Being sponsored by a broker in New York means that their brokerage will hold your real estate salesperson license. Agents enter into a contract with their sponsoring broker in which they agree to split the commission on all deals they close.
Once a broker sponsors you, you become a part of your sponsoring broker’s brokerage and are entitled to the benefits that brokerage offers, such as training or lead generation tools.
What does a sponsoring broker do?
A sponsoring broker is responsible for the agents they sponsor, as well as running the day-to-day operations of their brokerage. Typical duties of a sponsoring broker include:
- Managing brokerage and agent information in eAccessNY, including processing new agent associations.
- Mentoring and training the agents they sponsor.
- Supervising their agents’ activities to ensure they are not violating license law.
- Holding the license of the agents and associate brokers they sponsor.
- Collecting commissions on transactions and making payouts to agents.
- Providing office space, documents, supplies, and other resources their agents need.
How much does a real estate broker sponsorship cost?
The cost of a real estate broker sponsorship will vary from broker to broker. With most sponsoring brokers, you split the commission on the homes you sell and that commission split will be determined by your sponsoring broker.
In other cases, your sponsoring broker may allow you to keep 100% of your commissions, but require a monthly fee to be paid to the brokerage. Determining which of these cost structures you prefer will be an important step in choosing your New York sponsoring broker.
Why do I need a sponsoring broker?
You will need to be sponsored by an active New York broker to apply for your New York real estate license. When submitting your New York Real Estate Salesperson License Application, you will need to input your sponsoring broker’s license information. After you submit your application, your sponsoring broker will approve your application, officially making you a licensed New York real estate salesperson.
While you’ll legally need a sponsoring broker to apply for your New York real estate license, your sponsoring broker will play a major role in helping you succeed in your first year of real estate.
They will serve as your mentor, your knowledge resource, and provide you with one-on-one training as you begin your career and encounter new situations as a real estate agent.
Your sponsoring broker will be there to answer your questions, point you in the right direction, and provide you with sales opportunities. Often, they also provide systems and tools that will help you launch your real estate career.
What should you expect from your sponsoring broker relationship?
Although you just completed your New York 77-Hour Real Estate Pre-Licensing course, there still will be a lot to learn about being a New York real estate agent once you get started.
During your first year in real estate, you can expect your sponsoring broker to provide you with extensive training, one-on-one mentorship opportunities, as well as the other valuable resources, like marketing tools and lead generation resources.
Conversely, your sponsoring broker will expect you to be actively involved in the brokerage, taking advantage of training and mentoring opportunities given, and doing your best to begin working on deals.
When should I begin looking for a sponsoring broker?
You can begin the process of finding a sponsoring broker when you are close to completing your New York 77-Hour Real Estate Pre-Licensing course. It is recommended that you interview with a few sponsoring brokers before choosing one, so it is important to begin this process as soon as possible, so that you don’t delay the process of actually applying for your New York real estate salesperson license.
Do I need to find a sponsoring broker before or after I take my state exam?
You can find your sponsoring broker before or after you take your New York State Real Estate Exam. However, as mentioned above, it is smart to begin the process of finding a sponsoring broker as soon as possible, ideally before you take your State Exam. You will need to officially get an offer from a sponsoring broker in New York before you can submit your New York Real Estate Salesperson License application.
How To Choose Your First Real Estate Brokerage In New York
When entering the real estate industry in New York, selecting your first brokerage is a critical decision that can shape your career. It’s essential to consider several factors before making your choice.
Commission Split:
Most brokerages operate on a commission split system, meaning you’ll share a portion of the earnings from each sale with your brokerage. Splits can vary significantly, so it’s beneficial to inquire about the commission structure and compare what’s offered.
- High Split: You keep a larger percentage, typically with fewer provided resources.
- Low Split: You receive a smaller cut, but the brokerage may offer more support and services.
Training and Support:
As a newcomer, robust training and ongoing support are invaluable. Look for a brokerage that offers comprehensive training programs and resources to help you develop your skills.
- Mentorship: Does the brokerage provide a mentor or guidance from experienced agents?
- Marketing: Are there marketing tools and assistance available to help you attract clients?
Brokerage Reputation and Culture:
Research the brokerage’s reputation within the community and industry. The company’s values and culture should align with your personal and professional goals.
- Client Feedback: Seek reviews from past clients to gauge satisfaction.
- Agent Satisfaction: Talk to current agents about their experiences.
Long-Term Opportunities:
Consider the brokerage’s market presence and the opportunities for growth they provide. What’s their business model, and how might it facilitate your long-term career plans?
- Career Advancement: Are there clear paths for advancement within the company?
- Networking: Does the brokerage encourage and facilitate networking with other professionals?
Analyzing these elements will help you join a brokerage that not only meets your immediate earning needs but also supports your career growth and development in New York’s dynamic real estate market.
How To Find A Broker To Sponsor Me in New York
Finding a broker to sponsor you in New York is one of the first big steps in your real estate career, as your sponsoring broker will play a major role in your journey to become a successful New York real estate agent.
Since your sponsoring broker will be the foundation of your new business, it’s important to find the right fit. To make the process of finding a sponsoring broker easier, we’ve listed these 5 steps to follow to ensure you choose a sponsoring broker that matches your career goals and lifestyle.
1. Decide what is important to you in a sponsoring broker.
The first step in finding a broker to sponsor you in New York is to determine what exactly you are looking for in a brokerage. Every sponsoring broker in New York is different and will have different benefits for their agents. Determining which of those benefits are most important to you will help you narrow down the sponsoring brokers you research and interview with.
Here are a few of the most important things to consider when choosing a sponsoring broker:
- Training and Mentorship – One of the most crucial things to consider when choosing a sponsoring broker as a new agent is their training and mentorship. Some brokerages have training and mentorship programs that can help you start your new career. As a new agent, be sure to interview with sponsoring brokers that offer training and mentorship opportunities and ask about the structure and frequency of these programs during your interview.
- Agent Support – As with anything you are new to, it is important to set yourself up with the proper guidance and support you need to thrive in as anew real estate agent. Make sure the brokerages you’re researching value providing support to new agents and are eager to answer your questions.
- Commission Structure – Commission split percentages differ from broker to broker. Although this is important, remember not to base your entire decision off a brokerage’s commission split. There are many other factors to consider, such as training and support. With that being said, it is still a good idea to be aware of commission structures as they affect earning potential and sometimes require additional fees.
2. Choose between national or boutique brokerages.
After determining which features are most important to you in a sponsoring broker, you’ll want to decide whether you’d like to work for a nationally-recognized sponsoring broker, such as Keller Williams or Douglas Elliman, or join a boutique brokerage in your local market.
At a boutique brokerage, you may receive more support and personalized training, but due to their smaller size, it may take a bit longer to get started on deals. With a larger national brokerage, you will likely receive less personalized mentoring, but their strong reputation and expansive network will likely lead you to more sales down the road.
There is no right answer when it comes to choosing between a national or boutique brokerage, it’s all about determining which type of sponsoring broker better matches your goals and needs as a new agent.
3. Get help from your course provider.
Some New York real estate course providers provide job placement assistance to their students, which can be really helpful during the process of finding a sponsoring broker in New York.
If you haven’t chosen a new york real estate school yet, it’s a good idea to look into schools that will help you find and book interview with sponsoring brokers in your area.
If you already completed you NY 77-Hour Real Estate Pre-licensing course, try reaching out to your course provider to check if they can help with the process of finding a sponsoring broker.
4. Research sponsoring brokers in your area.
Once you’ve determined exactly what you’re looking for in a sponsoring broker, it’s time to actually research sponsoring brokers in your area. The first way to do this is through Google. Try googling ‘best sponsoring brokers your area’ and look into the companies that come up.
Another way to research sponsoring brokers in your area is to search top real estate agents in your area and see what brokerages they’re employed by.
Perhaps the best way to research sponsoring brokers in your area is to look on job boards, and real estate-specific job boards are even better. This will allow you to learn about brokerages that are actively hiring and looking for new agents.
Real estate job boards are a great resource for finding a sponsoring broker in your area. Corofy students have access to the largest exclusive real estate job board in New York, making it easy to find jobs at top brokerages.
5. Book interviews with the right sponsoring brokers.
After you’ve determined what type of brokerage you want to join and conducted your research on sponsoring brokers in your area, it’s finally time to book interviews with the right sponsoring brokers. Each sponsoring broker will have their own process of setting up interviews.
The most important thing is to try and book at least a few interviews with different sponsoring brokers so you can learn more about each of them and make a final decision on which broker will sponsor you.
How to get a real estate broker to sponsor you
Getting sponsored by a real estate broker is a crucial step in your journey. Here’s how to make it happen:
- Research: Start by researching potential brokers. Look for firms that align with your values and goals.
- Build Your Portfolio: Even as a newcomer, having a portfolio showcasing your skills, education, and any relevant experience can make you stand out.
- Network: Attend industry events, join real estate forums, and connect with professionals on platforms like LinkedIn.
- Pitch Yourself: Be ready to articulate your goals, how you can contribute, and what you seek in a sponsorship.
- Follow Up: After meetings or interviews, send a thank-you note and reiterate your interest.
Which brokerage is best to join?
It may sound cliche, but the best brokerage to join is the brokerage that best fits your goals, needs, and lifestyle as a new real estate agent. No two sponsoring brokers are the same and each brokerage’s benefits will be tailored for different types of New York real estate agents.
The key to finding the best sponsoring broker in your area is to follow the above steps by doing your research and taking advice and assistance in this process offered by your New York real estate course provider.
Prepare For Your Interview With A Sponsoring Broker
1. Prepare for your interviews with a career counselor.
Similar to job placement assistance, some New York real estate course providers will provide students with access to in-house career counselors who will help you set up interviews with sponsoring brokers in your area and prepare for those interviews.
If your New York real estate school does provide career counseling, be sure to take advantage and set up a meeting with your career counselor as soon as possible. They will be able to provide you with insider tips and advice to help you shine during your interview.
2. Prepare questions to ask potential sponsoring brokers.
It’s important to remember that most sponsoring brokers in New York will be just as excited to hire a new agent as you are excited to find a sponsoring broker. As a result, it’s important to ask questions during your interview to ensure they are capable of providing you with the resources and features that are important to you.
A few good questions to ask a sponsoring broker during an interview include:
- What kind of training and mentorship opportunities do you provide new agents?
- What is your brokerage’s commission structure and are there any fees I’ll need to pay as an agent?
- What kind of marketing and lead generation tools do you provide new agents?
- How would you describe your brokerage’s company culture?
- What kind of support does your brokerage provide new agents?
3. Prepare answers to questions the sponsoring broker may have.
Just as you’ll have questions prepared to ask during the interview, so will the sponsoring broker you’re meeting with. The interviewer will know that you are new to the industry and will likely ask questions to gauge how driven you are to succeed in the industry.
While you may not have real estate experience, use the questions asked as an opportunity to showcase how your experience in another industry and passion for real estate will help you to become a successful agent at their firm.
Some questions you may be asked during an interview with a sponsoring broker include:
- Why did you choose to get into the real estate industry?
- What are some goals you have for your career in real estate?
- What type of work experience do you have that you believe would help you excel in real estate?
Can you be sponsored by more than one broker?
In New York, real estate agents are typically sponsored by a single broker.
This is because your license will be associated with that broker’s firm.
Multi-sponsorship can lead to conflicts of interest and is generally not practiced.
It’s important to choose a sponsor who provides the support, resources, and growth opportunities you need.
Remember, the right broker can significantly impact your success in the real estate field!
What do I do after I find a sponsoring broker in NY?
Choosing a sponsoring broker in New York is one of the last and most exciting steps toward getting your New York real estate license, you will need to do the following:
- Pass your New York State Real Estate Exam if you haven’t already done so.
- Apply for your New York Real Estate Salesperson license.
- Have your sponsoring broker approve your application and officially get your new career in real estate started!
After securing your New York Real Estate Salesperson license and your sponsoring broker’s nod, it’s vital to grasp New York’s reciprocity rules. These agreements permit licensed real estate professionals from certain states to practice in New York without undergoing the full licensing process again. Familiarizing yourself with these rules can open up new opportunities and enhance your career flexibility. Understanding reciprocity will enable you to seamlessly extend your professional activities.
Can I apply for a NY real estate license if I don't have a sponsoring broker?
You will only be able to apply for your New York real estate license once you have officially chosen and been given an offer from a sponsoring broker. The reason you’ll need to find a sponsoring broker in New York before applying for your license is because your sponsoring broker will need to provide you with their business information in order to complete your New York Real Estate Salesperson Application.
Your sponsoring broker will also be responsible for approving your New York Real Estate Salesperson Application once it is submitted, so that you’ll be officially recognized by New York State as a Licensed Real Estate Salesperson.
What information will I need from my sponsoring broker for my application?
In order to apply for your New York Real Estate Salesperson Application, you will need to have the following information from your sponsoring broker:
- Their unique license ID number.
- Their official business name.
- The business address where your licensed will be stationed.
Your New York sponsoring broker will provide you with this information upon extending you an offer to join their brokerage.
Some real estate brokerages have multiple branches and therefore, multiple business addresses. While you may not be required to physically work at their business location, your license will be associated with their business address. Your sponsoring broker will provide you with this information.
Real Estate Broker Sponsorship FAQ
What does a sponsoring broker do?
A sponsoring broker is responsible for the agents they sponsor, as well as running the day-to-day operations of their brokerage.
Do you need a sponsoring broker?
Yes, you will need to be sponsored by an active New York broker to apply for your New York real estate license.
The best method of choosing a sponsoring broker is to choose a NY real estate course provider that offers job placement assistance.
How do I choose a sponsoring broker?
We’ve broken down the process of choosing a sponsoring broker into 5 steps:
- Decide what is important to you in a sponsoring broker.
- Choose between national or boutique brokerages.
- Get help from your course provider.
- Research sponsoring brokers in your area.
- Book interviews with the right sponsoring brokers.
When should I begin looking for a sponsoring broker?
You can begin the process of finding a sponsoring broker when you are close to completing your New York 77-Hour Real Estate Pre-Licensing course. It is recommended that you interview with a few sponsoring brokers before choosing one, so it is important to begin this process as soon as possible.
What do I do after I find a sponsoring broker?
After you’ve chosen a sponsoring broker, you will need to:
- Pass your New York State Real Estate Exam if you haven’t already done so.
- Apply for your New York Real Estate Salesperson license.
- Have your sponsoring broker approve your application and officially get your new career in real estate started!
Can I apply for a NY real estate license if I don’t have a sponsoring broker?
No, you will only be able to apply for your New York real estate license once you have officially chosen and been given an offer from a sponsoring broker.
Can I take my NY State Exam if I don’t have a sponsoring broker?
Yes, you can take your NY State Exam before choosing a sponsoring broker.
Key Takeaways
Choosing a sponsoring broker is a huge step in starting your real estate career and can have a significant impact on how you succeed during your first year as a New York real estate agent.
Here are a few things to remember when finding a sponsoring broker in New York:
- Consider what’s most important to you in a sponsoring broker to help you determine which sponsoring brokers you’ll look into and book interviews with.
- Utilize the job placement and career counseling resources offered to you by your course provider to help you through the process.
- Don’t delay choosing a sponsoring broker, as it will just slow down the process of officially getting your New York real estate license.
Now that you have all the information you need to choose the right sponsoring broker in your area, it’s time to submit your New York Real Estate Salesperson Application so you can get your New York real estate career started!
The next article in the New York Real Estate License 101 Guide will cover everything you need to know about applying for your New York real estate license, including when to apply, how to apply, and the next steps after submitting your application.
