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July 31, 2026
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Be nice/professional to everyone you meet in your career. Especially in real estate. It’s a small community.
The broker that you overtly snubbed could be your key to bringing you a deal in the future; or could move from brokerage to the principal side and be the guy who awards you group the deal.
Don’t let you perception of brokerage get in the way of the fact that at the end of the day, we’re all trying to put meat on the table.
A good one is worth their weight in gold. I've been in brokerage for my entire career and there are plenty of bad ones, but plenty of great ones. My team recently closed a sale that we had on market for a week, for a price around 7% higher than the team that had it on market for a year, meaning we more than covered our fee.
Brokers play a critical role in facilitating transactions (leases and sales) as well as in the debt/equity placement world, same I-bankers in the financing world. Some may gripe about the fees, but that is the nature of success only payments. The only real complaint is that not all are equally qualified, professional, or skilled at their jobs (low barriers to entry). The good ones earn their fees, period.
As to the Class C multifamily world? Seems like they would be critical in sales, but not really world. I'd guess brokers in that space can charge decent commissions, like 3% percent plus. Get into the large institutional sales world and fees fall to 1% and less, like 25 bps for really big deals. So, earnings are not so easy to compare (like volume does not equal fees when not comparing equal sized assets).
Thank you for summarizing the last part, "volume does not equal fees" basically took the words right out of my mouth.
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