How to Switch Real Estate Brokerages in Texas: A Complete Guide
Thinking about making a move to a new brokerage? You're not alone. Every year, thousands of Texas real estate agents evaluate their options and decide to switch brokerages for better splits, more support, or a fresh start.
Whether you're frustrated with high fees, looking for better technology, or simply ready for a change, this guide walks you through everything you need to know about switching brokerages in Texas.
Why Agents Switch Brokerages
The decision to leave your current brokerage isn't one to take lightly, but there are several compelling reasons agents make the move:
1. Better Commission Splits
The most common reason agents switch is money. If you're giving up 20-40% of every commission check, that adds up fast. Many agents discover they can keep significantly more of what they earn at brokerages offering 100% commission models or flat-fee structures.
2. Inadequate Support or Training
New agents especially need mentorship and training. If your brokerage isn't investing in your growth, you may plateau. Experienced agents might seek brokerages with better transaction coordination, marketing support, or administrative help.
3. Technology and Tools
In today's market, having access to modern CRM systems, transaction management platforms, and marketing tools can make or break your productivity. Outdated technology is a valid reason to look elsewhere.
4. Culture and Leadership
Sometimes it's simply not a good fit. Office politics, lack of transparency, or leadership you don't trust can make work miserable. Finding a brokerage aligned with your values matters.
5. Brokerage Financial Instability
If your brokerage is struggling financially or has been acquired, the uncertainty can disrupt your business. Agents often prefer to make a proactive move rather than wait for problems.
How to Switch Brokerages in Texas: Step by Step
Step 1: Review Your Current Agreement
Before doing anything, pull out your Independent Contractor Agreement (ICA) and read it carefully. Look for:
- Notice requirements – Most require 30 days written notice
- Non-compete clauses – Generally unenforceable in Texas for real estate agents, but know what's there
- Pending transaction handling – Who manages deals in progress?
- Fee obligations – Any termination fees or outstanding charges?
Step 2: Research Your Options
Don't jump ship without knowing where you're landing. Evaluate potential brokerages on:
- Commission structure (splits vs. flat fee vs. 100% commission)
- Monthly/annual fees
- E&O insurance costs
- Technology provided
- Training and support
- Company culture and reputation
- Broker accessibility
Step 3: Interview Brokerages
Treat this like a job interview—but remember, they should be selling you. Ask tough questions:
- What's the true cost after all fees?
- How are leads distributed?
- What happens if I have a legal issue?
- Can I speak with current agents?
Step 4: Handle Your Pending Transactions
This is critical. You have options:
- Complete them at your current brokerage – Cleanest option if timeline allows
- Transfer them to your new brokerage – Requires all parties' consent
- Refer them to a colleague – You'd get a referral fee
Never abandon clients mid-transaction. Your reputation is everything.
Step 5: Submit Your Resignation
Provide written notice per your ICA terms. Keep it professional—this industry is small, and you'll cross paths again. A simple letter stating your last day is sufficient.
Step 6: Transfer Your License
In Texas, you'll need to:
- Have your new broker submit a sponsorship request through TREC
- Your old broker will receive notification to release you
- Once released, your new sponsorship activates
This process typically takes 1-3 business days through the TREC online system.
Step 7: Update Everything
Once you've officially moved:
- Update your TREC profile
- Change brokerage info on Realtor.com, Zillow, etc.
- Update business cards, email signatures, and social media
- Notify your sphere of influence
- Transfer any personal website domains if applicable
What to Look for in a New Brokerage
When evaluating where to hang your license, prioritize what matters most to your business:
For New Agents
- Strong training program
- Mentorship opportunities
- Lead generation support
- Reasonable fees while you build your business
For Experienced Agents
- Maximum commission retention
- Minimal fees and overhead
- Flexibility and autonomy
- Quality E&O coverage
- Reliable broker support when needed
For Team Leaders
- Team-friendly commission structures
- Ability to recruit and build
- Administrative support options
- Technology that scales
Red Flags When Evaluating Brokerages
Watch out for:
- Hidden fees that aren't disclosed upfront
- Pressure tactics to sign immediately
- Vague answers about costs or support
- High turnover among agents
- Negative reviews from former agents
- Outdated technology or no tech investment
The Bottom Line
Switching brokerages is a business decision. Don't let loyalty to a company override what's best for your career and your clients. The right brokerage should feel like a partnership, not a burden.
If you're a Texas agent exploring your options, we'd love to chat. RaiderX offers 100% commission with straightforward flat fees—no surprises, no drama. Learn more about joining RaiderX.
Have questions about making the switch? Contact us for a confidential conversation about your situation.