7 Strong Tips On How To Choose A Real Estate Broker.
It is estimated 87% of real estate agents will fail in their first 5 years of being in business. Choosing the right real estate broker to work for may contribute to big success or big failure.
When I first started out in real estate in 2003, I was excited, nervous, confused and scared. I knew coming into this I didn’t want to be part of the large percentage of people who fail in this business! However, I was close! In this article on 7 Strong Tips On How To Choose A Real Estate Broker and throughout this site, I will try to provide as much valuable information so you can ensure success.
20 Years Old
I was 20 years old starting out. Never sold a piece of property or previously worked for a real estate company. I just knew I didn’t want to work for anyone. One of the most common reasons when I ask new or veteran agents “Why real estate” – They say: “I want to have the freedom.” or “I bought a couple houses and love looking at homes.” This maybe your response and it just isn’t enough… There is much more than “Freedom” and “Loving Real Estate” in order to live this lifestyle and be a success…
It starts by aligning yourself and choosing the right real estate brokerage.
You finally earned your real estate license and quickly realize there are hundreds of real estate offices in your area and you have no idea who to choose. This is where 7 Strong Tips On How To Choose A Real Estate Broker comes in handy.
Once you have the state license it is recorded with your state and every Broker knows (or should know) about it. You are getting phone calls, emails and letters in the mail and could make it a full-time job just interviewing real estate companies. It is exciting but also an extremely important process in its infancy stage to ensure success.
Prepare before you even start the process in choosing a brokerage / office.
The first piece of advice is to begin with outsider info. What do I mean by this? Ask friends, family, co-workers and more importantly real estate agents on good brokerages in town. Find out from people you know if they have bought or sold property in the past and who they used. Find out about their experiences with that agent.
If that agent provided great service and they were impressed with them then call that agent directly with the following – “Hello my name is Steve and I was referred to you by the Smith family who you sold them a house a few years back. They stated they had a really great experience with you and I had some questions for you if you have some time.”
Now they may think you are a potential client at this time so you want to get into the guts of the call. “Well, the reason for my call is that I just got my real estate license and I am looking to align myself with the right team and brokerage and wanted to see if you were open to talking to me about the company you are with?”
I know this may seem common sense, but if the agent is less than pleasurable then simply thank them for their time and hang up. You will encounter some really bad, egotistical real estate agents during your time in this industry. So no need to put up with any behaviors that do not align with yours.
Assuming they are helpful then use some of the Brokerage Interview questions below to get a feel for the support, training, etc.
What did you do above? You can call it research but I will call it prospecting. First off you began calling your Sphere Of Influence (People You Know) to let them know you just got your real estate license. Be sure to read our article on How to make Six Figures from Your Sphere Of Influence!
You are also aligning yourself with agents who you will work with in the future and also gaining insight into their brokerage with honest feedback / information. More importantly, by performing this act you are potentially opening up an opportunity with a veteran agent who may need some help like assisting in daily activities, holding open houses or becoming part of their TEAM as an exclusive buyer’s agent!
Go with your Hunch in Choosing a Broker!
When talking to other real estate agents and the interviewing broker / office manager, go with your gut. We all have that pit in our stomach that tells us how we feel. I want you to feel great and excited after walking into the office and talking with the real estate broker.
If anything feels off, take time and try to write out the pro’s and con’s of what you liked and disliked. A keen sense of feeling with go along in choosing the right real estate broker to work under.
Choosing your Broker is a two-way interview.
The real estate broker or office manager will hopefully ask you a series of questions. If they don’t, run. Sales is life. Sales is a series of questions to get you to the desired end results. The word QUESTIONS being the most important which you will read in many other articles on this site. We ask questions to ensure we can help others, right?
The broker will ask you questions like why did you go into real estate? What are your goals? What are your past sales experiences? How much money do you want to make in real estate and why? What are you looking for from a brokerage? Will this be a full-time career?
How many hours a day, week, month do you intend to work on your real estate career? Are you willing to prospect on the phones and door knock? How much money do you have money set aside to live off and how long will that last you? Do you have money for a marketing budget, if so, how much? Are you willing to sacrifice to be extremely successful in your real estate career?
But remember… This interview is two-sided.
It is important that the broker feels it is a good fit. However and more importantly it is imperative that you feel it is a good fit and they need to be in the hot seat while you ask the pertinent questions provided on the last section below.
Prepare for the broker interview. 3 Main Tips.
- The old saying, dress for success. It is amazing how people will treat you differently based on their appearance / first impressions. Make it count! Hands down, when I am in a suit people tend to look at me more, open doors, say hello and are overall more respectful. Guys, are you going to wear a suit and tie? Ladies, will you be wearing a pencil dress? How will you smell? How is your hair? Shoes shined? Dress the part and win! TIP – Once you are licensed and “off duty” going to the store or hanging with family at the park, consider wearing attire that will still attract business like a custom T-Shirt that says “I Sell Real Estate.”
- Be Early! I don’t think I need to stress much on this but yes I do. I have interviewed hundreds of real estate agents. I would say 25% are punctual or on time. I instantly will judge those who are late and always make it known. Why? Because it is my duty no matter what to begin coaching agents right away even if they are not a good fit. It is my duty to give back. Side story!! I went on a FSBO appointment the next day after cold calling. I showed up 2 minutes late. Literally 2 minutes. The door opens, the guy looks at his watch and said you are two minutes late! I apologized as I got caught in traffic due to an accident (Note, I would have been 15 minutes early). He explained if I am not punctual now how can I ever be relied on in the future? And he shut the door… What a learning experience huh? We have to account for the unknown like car accidents, traffic, bad weather, etc. You will make more money if you always remember: If you are on time, you’re late. If you are early, you are on time.
- Questions. Be prepared to answer most of the questions above and be prepared to ask the questions below. This is probably the most important part of the 7 Strong Tips On How To Choose A Real Estate Broker. Do not wing it. Go in prepared.
What questions to ask a real estate broker when interviewing.
Go ahead and use the questions below and bring it with you on EVERY interview. Take notes!! Don’t walk into the interview having not read the questions below several times. Practice the questions above that the broker may ask you. Role Play with your significant other or a friend. Practice, practice, practice. I have also created a FREE printable PDF Broker Interview so you can stay on track and take notes on each interview you go on.
- What does the training program entail? Can you get detailed on it or have an agenda I can review?
- Are the office meetings mandatory?
- Who will be the main point of contact when I need help?
- Do you hold regular office meetings? What days/times and what will be discussed?
- What is the gross sales for your Office last year/year to date?
- How many agents do you have?
- What kind of paperless software system do you use?
- Do you provide a website and CRM?
- How long have you been in business?
- What is the company culture like?
- How many offices do you have and how does the access work?
- Are there additional charges for using desks, printers, copier, computers, etc?
- Is there floor time or walk-in traffic?
- Does the office market my listings?
- Are there open house opportunities on other in-house agents’ listings?
- What are they looking for in an agent joining their office?
- Do you have a mentor program? Or teams looking a build on? If so how does it work?
- What kind of fees do you have? Monthly / Transaction?
- Is there a sign on fee?
- Do you offer signs, lock-boxes, business cards, etc.
- Is there a transaction coordinator?
- What marketing materials are available to use for buyer and seller presentations? Or generic marketing materials.
- What is the commission split you offer? Does it change or reset annually depending on volume sold?
- How are commissions paid? Are they paid at close? If not, what is the time frame from closing to check in hand?
- Do you provide leads? If so, is there a different split or additional fees?
- Is the company financially stable?
- Who is the broker of record and office manager?
- Do they compete?
- What has been their real estate experience? Did they actually sell real estate? Or are they just a manager?
- Who and what does the staff consist of? What do they do?
- What do the top producing agents make in the office?
- Is it ok if I call some agents in your Office to ask feedback of the brokerage?
- (If Yes) Can they provide a list? (If No) – Run like hell!!
- Can you get a copy of the independent contractor agreement and any other documentation that you will be required to sign?
And Lastly – Negotiate YOUR Deal once You Chose Your Real Estate Broker
Some brokers may be more negotiable than others. This will all depend on your past sales experience, personality, appearance and your negotiation skills. If you are new to real estate, understand negotiating is everything. So if you are a little weak or even scared of this aspect of real estate, get reading and practicing right away. And read THIS ARTICLE on negotiating tips for Realtors.
Whether you love or hate him, Donald Trump has some serious negotiation skills that he passed along in his book: Trump: The Art Of The Deal. A great read to gain some insightful tips on how to negotiate a better deal for you now with your new broker and skills to help you close more transactions in the future.
If you found 7 Strong Tips On How To Choose A Real Estate Broker to be helpful, then please keep checking back for more helpful articles to crush it as a real estate agent. And or pass along to a fellow agent who could use it.
I wish you much luck in your interview process and remember, be prepared!! Also, please subscribe to our YouTube Channel to watch vidoes that cover a lot of these topics as well.