I talked in Part 1 about finding THE right Broker to support you in your new career in real estate. When you begin to ask questions, you need to make sure you ask the important questions. Do your homework in advance and know each company well when you meet with the Managing Broker. The company web site is a great source of information, or should be...
BEFORE THE QUESTIONS:
The company web site should educate you about the company, the Broker, the agents, the marketing, and the history and philosophy they live by. Check out the links to see if they work. Look at the layout, is it well planned and up to date? The web site will be a reflection of you as well, if you join their sales force. Make sure you can live with it, because if they are not maintaining it and making it work, it will not be an asset for you. Remember, it is a high tech world - people are buying homes based on what they find on the internet. Most buyers start their search on the web - your Broker and you have to excel there, if you are to survive. The quality of the company site will either make or break your success.
THE QUESTIONS:
Become comfortable with your questions before you meet with the Broker the first time. You are asking them to consider you to become part of their staff - hopefully a very professional sales team. Part of good selling is being a natural and you are in the process of selling yourself. Guard against being perceived as arrogant or condescending. Know what is important to your decision and focus on those questions. Also, be ready to answer the Broker's questions - they are making a decision about you at the same time you are deciding about them. This process is a two way street.
Ask specific questions about compensation - the common term in the business is "Commission Split" and this has to do with what part of the total commission you will receive. Most companies start at 60/40, which means you get 60% and the company takes 40%. But you must ask about what the split will be based on and understand how it works. With most franchised companies, 6 to 9% of the total commission is paid to the franchise and your 60% is part of what is left. If just 6% comes off the top to go to the franchise, your 60% is now 56.4% of the original total. (With 9% fees, your 60% becomes 54.6% of the total.) The difference can be thousands of dollars each and every year. Make sure you understand their formula, you will have to live with it... (more on this subject in Part 3.)
Next, you need to ask about fees. Every company is different when it comes to fees. So, an answer like "they are routine for the business" is NOT a good answer, at least not for you. Some companies have significant fees that you must pay, even if you have sold nothing. The big one is a DESK FEE and you need to know that all companies DO NOT charge them. A new one is a TECHNOLOGY FEE that you pay each month, even if you use no systems of services from the broker. Some companies have MARKETING FEES, just make sure you know what you are paying for and what is being marketed. Some offices even charge you a REFERRAL FEE for clients the office produces, such as from floor calls. There are other creative fees some companies have devised. If you hear of any unusual fees, please leave a comment to this blog.
Training is an important subject to address for a new agent. You need to pin down the details of what training the company offers. Who will do the training - the Broker, another internal source, franchise trainers, electronic sources, or a combination? How often is the training offered, is it well attended, and is attendance required? Does the company sound like they are committed to the training program or just paying lip service to attract you? Focus on this subject and get the answers. You will definitely be glad you pursued the details later. You don't want to be new and alone.
Access to management. Remember I told you (in Part 1) that the Broker is required to supervise his new Affiliate Brokers and that means time together. This is a good subject to ask the agents in the office if you are allowed to spend time talking with them. Ask lots of follow-up questions, remember that you may be allowed to only talk with selected agents, so you may have to press to get un-coached answers. This is where I have to remind you that SIZE MATTERS - you can really get lost in a large company and that is not a good thing when you are working strictly on commission. A brand new agent can disappear in a large firm - if the Broker has a lot of agents to supervise, you can and often will suffer. Know who will be in charge of supervising you during those first days.
The administrative/support staff. Does the firm you are considering have a professional full-time staff or a college student to answer the phones? Start by listening to how the telephone is answered when you call and see if you are respected and dealt with appropriately - this will be your support if you become part of this company. When you need help with the copy machine, the e-mail system, office protocol, or all the other many processes, who will help you? Every successful real estate agent had lots of help becoming a success - make sure your new company offers you the help you will need. It matters!
AFTER THE QUESTIONS:
Once you have the answers you need, weigh all of the information very carefully. You are going to have to live with your decision for as long as you associate with your new Broker. If you do this right, you will have many successful years in one place.
Take the time to think about the whole picture. Consider first the people you will be working with on a daily basis. Make sure you find people of integrity as well as people you enjoy spending time around. The image of the Broker and the company will become the image the public will associate with you - make sure it is a good one. But you also need to make sure you enjoy being with your new associates.
Consider the location of the office, you may be spending some long and late hours there, so be sure it is a safe location. Is the office in a permanent location or are there plans for a move in the near future? Will the move still work for you and your needs.
In Real Estate Careers (Part 3 - The EXIT Strategy), I will continue this discussion with some information about services you can expect from my real estate company. Remember in Part 1 I promised to talk about being an "independent contractor" later, we still have that to cover as well. Please feel free to leave comments and ask questions at this blog site. Part 3 will follow later this week - check back.
(Career information at EXIT Upward Realty Click here.)
© 2008 EXIT Upward Realty
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