7 Questions to ask a potential Real Estate Brokerage (and why)
1. What is the average sale of your agents?
Find out the average sale in each agency. If a company has a high sales volume and a high average sale, then their agents make more money, with fewer sales. Think about how that will benefit you – make more money and do less work!
2. What is your average volume per agent?
It doesn’t matter what your commission split will be if you don’t sell anything. Find out what the average agent sells at each firm. That will give you a good idea about typical income, and will help with your decision as well. It’s easy to think that a higher commission split automatically means that you will make more money. However, 100% of nothing is still nothing. Example: if the average sale is $150,000 for one company with a 70% split, based on a 5% commission you’d end up with about $2625 (without any desk fees) but if the average sale for another company is $250,000 at a 55% split, based on a 5% commission you’d get $3,437.50 (again, before any other fees). So just remember that the commission split is not the whole picture.
3. Does your company provide leads?
Once you’re up and running for 5 years, 70% of your leads should come in on their own from past clients, personal referrals, and your own marketing efforts. In the beginning, it’s a little more difficult. Make sure that the company you’re working for offers floor time, and other ways for you to get company leads. It will really help make ends meet in the beginning while you are ramping up your business.
4. Is most of your volume from your broker?
It’s easy to look at the total volume and think that a company is super successful. However, if the managing broker is also in sales, they could be getting a significant portion of that volume. Ask a potential company about their total sales volume, and then what portion of that is from the managing broker.
5. Do you have a training program?
When you take the real estate salesperson licensing course, most of the information you will learn is about the laws of real estate. What they don’t teach you is how to actually sell it. Ask a potential agency about their training program: what it entails, how long it is, and also what kind of support is offered in the long run.
6. Do you have an incentive program?
Find out how the agency rewards hard work. Does the salesperson of the year earn a reward? Are there monthly or quarterly incentives or rewards? You want an agency that will push agents and reward hard work. It will make a difference!
7. What types of technologies make you stand out from the rest?
If technology is your thing, you want to make sure the agency you work for will be open to the latest technology, or that they implement it themselves! What’s important to you? Signing contracts on an iPad? Storing documents in the cloud for access anywhere at anytime? Ask questions to make sure that the environment you are joining is one that fits you.
If you’d like our answers to these questions, feel free to contact us. We can send our responses back, with no further obligation to you.