Brokerage
A real estate brokerage employs brokers and agents. Discover how brokerages provide brand recognition, MLS access, and legal compliance.
Definition
A brokerage is the real estate firm or company that employs licensed brokers and agents. Brokerages provide the infrastructure for buying, selling, and leasing properties, including access to the Multiple Listing Service (MLS), marketing tools, legal compliance systems, transaction management, and ongoing training. Some brokerages are national franchises with significant brand recognition, while others are boutique shops that focus on local markets. The brokerage’s reputation, technology platform, and fee structure can influence the success of its agents and the experience of buyers and sellers.
Why It Matters
The brokerage, not your individual agent, holds the MLS membership, the errors and omissions coverage, and the listing agreement you sign. Its fee model is what you are really choosing: a full-service firm at 2.5% of a $700,000 sale is $17,500, while a flat-fee brokerage like Wayber places the same home in the NWMLS for a set price and leaves showings to you. The listing reaches the same buyers either way.
Examples
A seller wants to switch firms mid-listing and learns the agreement is with the brokerage, not the agent, so cancellation requires the designated broker's signature.
An agent moves to a competing firm. Her active listings stay behind unless each seller signs a release.
A nine-agent Olympia office and a national franchise both feed the same NWMLS database, so a buyer searching in Tacoma sees both firms' listings side by side.
Tips
Read the cancellation terms in the listing agreement before you sign. Some firms release sellers on request; others hold you for the full term or charge a fee.
Find out where your earnest money will sit: a brokerage trust account or an independent escrow company. Washington deals usually use escrow, and knowing which applies tells you who to call to confirm receipt.
Compare firms line by line on what the fee buys: photography, MLS entry, lockbox, showing coordination, contract review. 'Full service' means different things at different offices.
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