Choosing Your First Brokerage in the AI Era

Richard Montgomery
Mon, 24 Nov 2025 23:00:00 -0800
Lifestyle

Dear Monty: I have just passed my salesperson exam and would like to know what to look for when determining the most suitable brokerage company for 2025. Any direction will be appreciated.

Monty's Answer: The AI real estate market has grown from virtually nothing to $2.9 billion in 2024. It is projected to reach $41.5 billion by 2033 (The Business Research Company), which will fundamentally change what new agents should evaluate in a brokerage.

The commission landscape has also shifted dramatically. Since the NAR settlement in March 2024, sellers are no longer automatically responsible for paying both agent commissions. Buyer agent compensation must now be negotiated separately, with written agreements required before home tours (NAR). This transparency requirement makes your brokerage's training and support on commission negotiations critical.
Updated: Tue Nov 25, 2025

Dear Monty: I have just passed my salesperson exam and would like to know what to look for when determining the most suitable brokerage company for 2025. Any direction will be appreciated.

Monty's Answer: The AI real estate market has grown from virtually nothing to $2.9 billion in 2024. It is projected to reach $41.5 billion by 2033 (The Business Research Company), which will fundamentally change what new agents should evaluate in a brokerage.

The commission landscape has also shifted dramatically. Since the NAR settlement in March 2024, sellers are no longer automatically responsible for paying both agent commissions. Buyer agent compensation must now be negotiated separately, with written agreements required before home tours (NAR). This transparency requirement makes your brokerage's training and support on commission negotiations critical.

Here are your strategic options for choosing a brokerage in this AI-transformed market:

Option 1: Evaluate AI infrastructure over traditional overhead. Only 29% of brokerages currently offer AI content-generation tools to their agents, yet agents who use them are nearly twice as likely to have effective marketing strategies (Inman). Ask potential brokerages: What AI tools do you provide? Seventy-five percent of top brokerages already use AI tools regularly (Kleio.ai). You want to be with them, not the laggards.

Option 2: Consider virtual brokerages seriously. Virtual brokerages are training companies first and very new startups. They are early, evolving and may offer better pricing compared to legacy firms with high overhead costs. Startups like Aceable Agent, CEShop, and Colibri Real Estate are leading online companies. Without brick-and-mortar expenses, they can likely offer higher commission splits while still providing technology support.

Option 3: Assess post-settlement training programs. Recent data shows buyer agent commissions have remained relatively stable at around 2.37%, with most sellers still choosing to pay buyer agent fees (The MortgagePoint). However, negotiation conversations have intensified. Does your potential brokerage train agents on presenting value propositions to justify commissions? Can they coach you through buyer representation agreements?

Option 4: Investigate their AI adoption roadmap. Approximately 700 companies worldwide now offer AI-powered solutions for real estate, with 62% backed by venture capital (JLL Research). Forward-thinking brokerages are piloting AI applications before scaling them. Leading PropTech platforms, such as ClosingLock.com, RealestateAPI.com, and Propbox.co are at the forefront of this revolution. Ask: What AI pilots are you running? How are you preparing agents for AI-assisted transactions?

Option 5: Test their actual technology, not their promises, by requesting demo access to their systems. Over 90% of real estate firms report active interest in AI, but only 36% globally actually use it in their organizations (JLL Research). Many brokerages claim AI capabilities they don't deliver. Verify before signing.

Due diligence matters more than ever. Check LinkedIn for "(Brokerage Name) real estate agent" and filter by current employees vs. those who left in the past year. High turnover signals problems. Also check Glassdoor ratings for large companies and Google reviews for actual agents.

The Bottom Line: In 2025, your brokerage's technology stack matters as much as its market share. Morgan Stanley Research estimates that AI could generate $34 billion in efficiency gains for the real estate sector by 2030. Choose a brokerage that invests in the future, not one that clings to the past.