Whether you are a brand new real estate agent taking your first steps in the industry or a seasoned professional seeking to elevate your business, selecting the right brokerage to hang your license is crucial to your success. As a real estate agent, your choice of brokerage will have a significant impact on your professional growth, earning potential, and overall job satisfaction. With numerous options available, it can be challenging to navigate the real estate landscape and find the ideal fit for your unique needs and goals. In this quest, there are several critical factors to consider, including the brokerage’s culture, commission structure, marketing resources, training programs, and community involvement. By carefully weighing these factors and selecting a brokerage that aligns with your values and vision, you can position yourself for long-term success in the real estate industry.
Financial
- What are your commission splits?
For instance, does the broker receive 40% while you take 60% of the earned commission? - Are there any franchise fees?
It’s not uncommon for larger real estate brokerages to charge a franchise fee between 3% to 8% in addition to the commission split mentioned above. In this scenario, the broker would receive 40%, there would be a 5% franchise fee, and you would receive 55%. - Do you offer a commission cap?
A commission cap is the maximum amount of commission that the brokerage will keep each year. For example, if the cap is set at $20,000 and you generate $200,000 in gross commission, you would net $180,000. If the brokerage does not offer a commission cap and you’re on a 60 / 40 commission split, the broker would receive $80,000 and you would net $120,000. - Are there any other brokerage-related fees?
Some common examples include monthly office fees, monthly MLS fees, Errors and Omissions Insurance (E&O), start-up fees, and desk fees. - What other expenses might I be responsible for?
Other common expenses could be lockboxes, eKey (to access property lockboxes), signage, business cards, website hosting, and IDX (MLS feed).
Brokerage Environment
- How many real estate agents are in the office?
Knowing the number of real estate agents in the office can give you an idea of the size of the brokerage and its potential for growth. A larger office with more agents can provide access to a broader pool of potential clients and more significant marketing and advertising resources. However, a smaller office with fewer agents may provide a more personalized experience and a stronger sense of community. Additionally, having a clear understanding of the number of agents in the office can help you gauge competition and determine whether the brokerage’s culture is collaborative or competitive. - How often do you have team meetings, happy hours, lunch & learn sessions, etc? Are there any meetings that are mandatory attendance?
It’s crucial to have a supportive environment and opportunities for ongoing learning and growth. Knowing the frequency of team meetings, happy hours, lunch and learn sessions, and other events can help you understand how involved the brokerage is in fostering a positive company culture. Additionally, asking about mandatory attendance can give you insight into the expectations of the brokerage and help you plan your schedule accordingly. - What do you do to help promote our listings, the office, and the agents?
Marketing and promotion are critical components of a successful real estate business, and it’s essential to know how the brokerage supports its agents in this area. Asking about the brokerage’s promotional strategies can give you an idea of how they help agents generate leads and close deals. Additionally, understanding how the brokerage promotes its brand and listings can help you assess the overall marketing strategy and whether it aligns with your business goals. - Is a desk or phone duty required for each agent? If so, how many hours a week?
Many brokerages require agents to complete desk or phone duty as part of their responsibilities. Knowing the frequency and duration of these duties can help you plan your schedule and manage your workload. Additionally, understanding the expectations around desk or phone duty can give you insight into the brokerage’s culture and whether they prioritize a supportive environment for their agents. - How are you involved with the surrounding communities?
Involvement in the local community can help agents establish themselves as experts in the area and generate more leads. Knowing how the brokerage is involved with the surrounding communities can give you insight into its commitment to the local area and potential opportunities for networking and community involvement. Additionally, understanding the brokerage’s involvement in charitable organizations or community events can give you insight into its values and whether they align with yours. - What are your expectations for me? Is there anything else that I’m required to do as an agent under your real estate brokerage? This could include selling a certain number of homes each year, being a full-time agent, attending certain meetings, etc.
Brokerage Benefits
- Do you offer any of the following?:
- Business Cards
- Signage
- Lockboxes
- Stand-alone website or page on broker’s website (FYI: a stand-alone is a big plus)
- Are homebuyer or home seller leads provided? If so, ask the following important questions:
- How are they distributed among the agents?
- Is there a referral fee or upfront charge?
- How many leads can I expect each week or month?
- Are the leads website registrations or are they actually inquiring about a specific property?
- What is the typical conversion rate on your leads (i.e. what percentage of the leads end up buying or selling)
- Transaction Coordinator (Can you keep your independent TC at Monster Dynamics? Some brokerages require you to use their in-house TC because it’s additional income for them)
- Technology support team
- Continuing education classes (for CE credits)
- eSignature tools – DocuSign, DotLoop, etc
- Customer Relationship Management (CRM) system
- Discounts with local vendors
- Marketing resources (try to get lots of details about what is available)
- Meeting space (to meet with your clients)
- Clerical or administrative support
Company Culture
- Can you describe the atmosphere of the office?
- Would it be possible to get a tour of the brokerage and meet some of the agents and staff?
- Can I have the phone numbers of 3 to 5 agents who work in the office? (It’s always beneficial to have a private discussion with the other real estate agents!)
Summary
Understanding the atmosphere and company culture of a real estate brokerage can be challenging, but it is crucial to gather as much information as possible before making a decision. Even though real estate agents typically work independently, having a supportive environment is essential when encountering obstacles or aiming to elevate their business. Selecting the appropriate real estate broker can significantly impact an agent’s prosperity and satisfaction.
0 likes
