Whether you are newly licensed or are transitioning from another carer, choosing a real estate brokerage firm is a crucial step in your career. Agents who choose brokerages that align with their gaols gai carer satisfaction, ehealth work-life balance, and earn more income.
T help you make an informed decision, here are eight questions to ask a broker to ensure they align with your goals, values, and working style.
1. Commission Structure and Compensation
Understanding your broker’s commission split structure is among the most important conversations to have. Commission split directly impacts your take-home revenue. Ensure you know how you will be getting paid to plan your financials. Here are are some questions t ask your broker on commissions:
What is the commission split for new agents?
Brokerages split commissions differently. Ask if the structure is based on years of experience or performance. Compare the brokers’ split with the industry average or their competitors in your area to ensure you get the best deal for your hard work.
Are there any commission caps or tiers?
Commission caps usually “cap” how much a brokerage can take from an agent’s commissions. For instance, the eXp Realty commission cap is $16,000. This means that once agents reach this amount n commissions, the brokerage does not get a cut. Caps help agents know their potential rings and motivate them to achieve their cap each year.
What are the fees associated with being an agent (desk fees, E&O insurance, MLS fees, etc.)?
Specific fees are associated with joining a brokerage, and they differ by firm. New agents should ask about particulars such as desk fees, MLS fees, and Errors and Omissions (E&O) fees.
These fees eat into your earnings, so it is crucial to ask beforehand so you can plan accordingly.
Is E&O insurance required and covered by the brokerage?
An E&O Insurance cover protects agents from legal claims related to their professional conduct. Find out if you have to cover the insurance cost yourself or if the brokerage does this collectively. Ask about the insurance limits and deductibles.
Are there any bonus or incentive programs for new agents?
Many brokerage firms offer bonuses or other incentive programs to motivate agents. Some firms offer sign-up bonuses and other incentives. Ensure clarity on the terms of accessing these sign-up offers and the implications they may have if you ever choose to change brokerages.
2. Training and Support
As a new agent, training and support are crucial to getting you indoctrinated into your local real estate market. New agents also need mentorship to navigate contracts, clients, and other industry stakeholders. A good brokerage should offer you training resources and support to set you up for success.
What kind of training programs do you offer for new agents?
Do they offer in-person classes, online courses, or no training at all? Enquire as to how these training options are structured to help new agents succeed.
Is there a mentorship program available?
The chance for mentorship can set a new agent on the path to success through invaluable guidance and feedback. Find out if the brokerage has a mentorship program and how yo access this offering.
How much support can I expect from the brokerage in terms of lead generation and marketing?
Marketing is a significant component of a real estate agent’s daily activities. Ask about tools, resources or financial support offered for lead generation, client acquisition, and advertising budgets.
What resources are available for learning about local market trends and property values?
Staying abreast of local industry news comes in handy when serving clients and negotiating. Ask your potential brokerage about any support in acquiring information on market reports, training sessions, or access to industry databases to help you stay ahead.
3. Brokerage Culture and Expectations
When choosing a brokerage, the brokerage's goals and mission should align with your career goals for a seamless working relationship. Find out if your brokerage aligns with your needs by asking questions about the culture and what they expect from you.
What is the brokerage's culture and philosophy?
This is basically the firm's vision, mission, and values. Ensure that the work environment is a fit for your unique talents and career goals.
What is the expected level of production for new agents?
Ask about your key performance indicators as a new agent. How much production do they expect from you within your starting year? Gauge if these goals are available for you to determine your expected workload.
How does the brokerage handle lead distribution?
Lead distribution can impact your ability to generate business. Inquire about the system for assigning or sharing leads and how this might affect your earning potential.
What is the brokerage's focus: residential, commercial, or both?
If you are interested in a brokerage that focuses on commercial real estate, ask upfront. Some brokerages have separate departments or companies for different industry niches. For instance, eXp Realty is the firm's residential arm, while exp Commercial is the commercial entity.
How big is the brokerage, and what is its market share? What is the competitive landscape like?
Depending on your area of operation, your potential brokerage may be a big or small player. Regardless, it is wise to inquire about the brokerage's market share to understand the brand power backing your operations.
Big, well-established brands can help land you deals, while smaller niche-specific firms may be better placed to serve targeted clients. Your career goals will inform your choice of brokerage once you have this information.
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4. Technology and Tools
Technological resources and tools are crucial for real estate agents. Tools like CRMs save time and money while streamlining operations for success. A brokerage firm is charged with providing these resources to their agents.
What technology and tools does the brokerage provide to its agents?
With increasing competition among brokerages, firms are coming up with innovative tech tools to attract new agents. Ask about the tools available for agents, any costs to the agent associated with these tools, and how they help agents achieve success.
What is the process for accessing and using these tools?
Do new agents automatically get access to these tools, or do they have to get to a certain level of production? Ask about onboarding, training on using the available tools, and support in case of hiccups.
How does the brokerage handle transaction management and paperwork?
Ask about transaction management, if there are tools available for that, and how the firm handles paperwork.
5. Office Environment and Support Staff
Your working space can impact your performance. Ask about what to expect in your potential work environment and how this can affect your work.
What is the office environment like? Is it collaborative and supportive?
A positive work environment is crucial for psychological safety and increased productivity. Ak about any initiatives to promote collaboration and support for new agents.
What kind of administrative support is available?
Proper administrative support can help you, as a new agent, ease your workload so you can better focus on client interactions. Find out if there is dedicated staff for handling paperwork, scheduling, and other administrative tasks.
Are there shared office spaces or dedicated desks for agents?
With the emergence of cloud-based brokerages, new agents need to ask about office spaces. Inquire about physical office spaces and if there will be dedicated desks for agents, if the brokerage is cloud-based, and if there are any initiatives to get agents dedicated virtual offices.
6. Legal and Compliance
It is crucial to ensure that your brokerage is legally compliant.
How does the brokerage handle compliance with real estate regulations?
Ask about state-specific real estate regulations and how the brokerage is ensuring compliance.
What is the process for handling disputes or complaints?
Understand how the brokerage handles disputes and complaints, the support available for agents involved, and any procedures you should be aware of to ensure efficient conflict resolution.
What kind of legal support is available to agents?
Legal support can be crucial in addressing legal challenges or questions. Inquire about the resources available for legal advice and representation and how the brokerage assists with legal matters.
7. Growth and Development
Every agent wants to grow in their career and earn more revenue. Inquiring about growth opportunities is an important step before joining a brokerage.
What opportunities are there for career advancement within the brokerage?
Ask about potential promotions, career advancement, and opportunities for increased responsibility.
How does the brokerage support agents in building their business?
Find out about resources, programs, or any coaching available to support the growth and development of agents’ businesses.
What are the brokerage's long-term vision and goals?
Aligning with a brokerage’s vision and goals ensures a mutual commitment to success. Understand the brokerage’s long-term plans and how they align with your career aspirations.
8. What Benefits the Brokerage Offer Agents
Comprehensive benefits can help agents build a solid career. Enquire about health insurance, retirement plans, and other supportive initiatives for agents.
Can Agents Build Their Brand Here?
Ask about the brokerage’s support for personal branding, including marketing resources, networking opportunities, and autonomy in managing your public image.
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