How to Choose a Real Estate Brokerage in Texas as a New Agent

The eight questions

• What is the total cost? Split, transaction fees, monthly or desk fees, technology fees, franchise or royalty fees, and any annual cap that resets.
• What do I get for it? Tools, marketing, transaction management, e-signature, email, a website, training.
• How do leads work? Who gives them, how are they assigned, what do I owe when one closes and when one does not, and what makes me lose them?
• How much time can I get with my broker? Ask how quickly they answer questions and who helps when a contract goes sideways.
• What does training look like? Ask for the schedule and who teaches it. Ask what a new agent is expected to do in the first 90 days.
• What are the rules if I leave? Ask about pending deals, referral fees and any exit fee.
• Who works here? Meet two agents who joined in the last year. Ask what surprised them.
• Is it in writing? Verbal promises are hard to rely on later. Get the independent contractor agreement and read every page.

Split versus support

A lower split with real training, leads and broker access can be worth more in your first year than a high split with none. A high split with heavy fees can also cost more than it looks.

Compare two brokerages by working the numbers. Enter each brokerage's fees and see what you keep on the same sale.

Red flags

• They will not give you the fee schedule before you sign.
• They promise a specific income.
• They push a fast decision.
• Nobody can tell you how leads are assigned.
• The people who left recently will not talk to you.

Compare the models

Different brokerage models make different trades. Read types of brokerages and discount or support-first before you decide.

Three conversations before you decide

• The broker or leader: ask about support, rules and exits.
• An agent who joined in the last year: ask what surprised them.
• An agent who left: ask why. Their answer is the one most brokerages avoid.

A side-by-side you can print

Use the printable brokerage scorecard to score two or three offers on cost, leads, training, broker access and exit terms.

What Texas rules say your broker owes you

These are plain summaries of TREC Rule 535.2 and the Texas Real Estate License Act. They are not legal advice. Your broker is responsible for the acts of the sales agents the broker sponsors. The rule also says the broker must tell each sponsored sales agent in writing which activities the broker authorizes.

The same rule says a broker does not have to supervise sales agents directly. So do not assume help will show up on its own. Ask who answers when a contract has a problem, how fast, and whether that person is named in writing. The rule also says brokers keep transaction records for at least four years from closing. Ask where your files live and how you get them if you leave.

Your pay moves through your broker. TREC says a sales agent may accept pay on a deal only from the broker who sponsored them when it was earned, and a commission cannot be made payable to your own LLC. Ask how long after closing the brokerage pays you and what can be held back.

What to look for in the independent contractor agreement

The IRS says a licensed agent is treated as self-employed for federal tax purposes when substantially all pay is tied to sales or other output, not hours, and a written contract says the agent is not an employee for those purposes. That is one reason the written agreement matters. TREC rules also bar brokers and sales agents from giving legal advice, so a broker cannot tell you what a clause means for you. Read every page, and ask an attorney or tax professional about anything unclear.

• Fees: does the agreement list every fee, or point to a fee schedule that can change? Ask how much notice you get before a change.
• Pay: how long after closing are you paid, and what can be held back?
• Leads: who keeps a lead the brokerage gave you if you leave, and what happens to a pending deal?
• Authority: which activities does the broker authorize in writing?
• Ending it: who can end the agreement, with how much notice, and at what cost?
• Disputes: does the agreement require mediation or another process before a lawsuit?

MLS access and dues run through your broker

NTREIS serves North Texas, including Dallas and Fort Worth. Its site says you get its services through a broker who is an MLS participant, not by joining on your own. So ask who pays MLS and association dues, how they are billed, and what happens to them when you leave. Ask too whether forms software and e-signature are included or whether you buy them yourself.

Worksheet: score two offers (original)

This is an original worksheet. Score each answer 0, 1 or 2. Zero means no answer or only a verbal one. One means a partial answer or one that is not in writing. Two means a clear written answer. Score each brokerage on its own sheet.

Decision rules by situation (original)

These rules are an original starting point, not advice. Your numbers and goals decide the final call.

A realistic-year cost example (original, round numbers)

This is an illustration, not an offer from any brokerage. Assume each sale pays you $9,000 in commission before the brokerage takes its part. Brokerage A charges $150 a month and a $300 fee per deal, and keeps $1,350 of each commission. Brokerage B charges no monthly fee and no per-deal fee, and keeps $2,700 of each commission.

How to use the example

In this example the break-even point is just under two closings. Below it B costs less. At two or more, A costs less. Pick the closing count you think is realistic, then lower it, and see whether the answer changes. If it does, that offer depends on a number you cannot control.

The table leaves out what each brokerage gives you for its fees. Training, leads and broker access can change what a year is worth. Add them to your view with the brokerage scorecard, and read commission splits and fees explained and what no desk fee means for how each fee type works.

Check before you rely on this

This guide reflects the sources named below, read in early October 2026. Fees, rules, forms and market numbers change, and some details here may already be out of date.

Confirm anything that affects your money, your license or a contract with the source itself, such as TREC, the National Association of Realtors, your local association or your sponsoring broker. If something looks different from what you find, trust the source and let us know. This guide is general information for licensed agents and people becoming agents. It is not legal, tax or financial advice.

How The Bauer Group fits

The Bauer Group is a Frisco, Texas brokerage. There are no monthly, annual, desk, franchise or inactive-license fees under the current fee schedule. Terms, including splits, are shared in writing on the first call.