Not every real estate agent is a broker. Each real estate agent must work under a broker’s supervision. A Designated Broker supervises agents from their office. Although, not every broker acts as designated broker. Some, called Associate Brokers, get their broker’s license and work underneath a designated broker. Before joining a real estate broker, interview them before agreeing to become their client.
- The legal points of Real Estate are always changing, and agents need to understand the best practices to remain in compliance.
- Understanding what costs and fee's are involved when working under a broker is essential to the viability and success of your business.
- Make sure you have it in writing. If necessary, seek legal counsel to ensure your interests are protected.
Once you have earned your real estate agent’s license, it’s time to interview prospective brokers. Since real estate agents in most states are required to work under licensed real estate brokers, making this choice is a key decision in beginning your new business. There may be differences in the market share of your local brokers, the commission split they will negotiate with you, and the types of business and educational support they have available.
- How many agents work out of this office?
Networking and joining forces with other agents is a huge benefit. You will be expected to bring in your own clients and listings, but there is a lot to learn from those around you. It's likely that their seasoned agents have been there and done that. A brokerage with a handful of agents is necessarily a bad thing, especially if they've built a credible brand.
- What is your market share?
More than 70% is a good indicator that you are at a top office. Having local and statewide notoriety ensures a successful start to your career.
- How many top agents do you have?
Chances are the broker may say that every agent they have is a top agent. Top agents generally sell more than 15 or more homes in a year. Ask for supporting financials, press releases or web articles that support the brokerage in question.
- What forms of training and continuing education do you provide?
Real estate agents, both seasoned and new, need consistent training and continuing education to stay up to date with the current laws and best practices in the industry. Mentorship programs coupled with an extensive new agent training series is the best way to provide a well-rounded education. Mentors can teach new agents real-world scenarios including the do’s and don’ts of the industry. The legal minefield is ever-changing, and agents need to understand the best practices, including training, to keep mistakes minimal and litigation at bay.
- What business necessities are you willing to pay for?
Real estate agents are responsible for all aspects of running their own business, but brokers can help out by providing them with items like business cards and signs as well as office and tech support.
- What is your commission split schedule?
Each company will have its own guidelines outlining the way commission is split between agents and brokers. New agents typically receive a smaller split because they require more help from their broker. Your commission split should become greater as you sell more homes and become more independent. There is room to negotiate here, however. Point out to the broker any reasons why you might be more valuable than the typical new agent—maybe you have a large contact list from a previous job to draw on, or you have a successful track record in another sales position.
- How accessible is management?
Will you be on your own a lot, or will the sales manager be readily accessible? How often is he or she in the office and can you get a hold of them whenever you need to?
Deciding which team to join, or if you’ll go with an independent firm or a national franchise is a very important, and very personal decision. Regardless of what you read on a website or have heard from friends in the business, you need to do your own research and consider your personal work style and values. The high rate of failure can largely be blamed on new agents getting in over their head after not spending enough time analyzing their options before committing to a company.
According to the 2015 National Association of REALTORS® Member Profile, 59% of all REALTORS® are affiliated with an independent, non-franchised company.
More 2017 highlights from NAR include:
- The typical REALTOR® has 10 years of experience.
- In 2016, the typical agent had 12 transactions, which is up from 11 transactions in 2015.
- Most REALTORS® worked 40 hours per week in 2016, a trend that has continued for several years.
- Sixty-three percent of all REALTORS® are female.
- The majority of REALTORS®—82 percent—own their primary residence.
- Eighty-two percent of REALTORS® are very certain they will remain active as a real estate professional for two more years.
How the Relaxed Agent Team can Help with your Next Transaction
In addition to asking these questions, having a team of superstars that ensure your transaction is BRE compliant is a must if you're expecting to crush it! Relaxed Agent provides seamless and professional support to help you every step of the way. For more information on how we can help, call us today 760-213-0110 or send our team an email 👉 firstname.lastname@example.org.