You’ve made the decision to switch brokerages or maybe you’re just thinking about it and want to do a little bit of research. Interviewing brokerages is really the key to finding the best place in which to work. You want a brokerage that supports their agents, offers assistance and help, and doesn’t take your full commission. We recently asked agents what they wish they knew when they got into real estate and we got a lot of answers; 100 of them in fact, and one of the main key points was finding a brokerage that really supports their agents and is available. This should be one of your number one priorities when looking for the right brokerage.
Brokerages, the managing broker can vary from office to office. So when you’re interviewing brokerages and specifically a broker in which to work under, here are the top 20 questions that get asked the most.
#1. What are the goals of the company?
Agents want to know where the company is headed. This is not just regarding market share but also what the individual brokers goals are and what it looks like for agent growth. If they’re looking to grow their agent base, it usually means they are committed to delivering tools and systems that agents need to thrive. If you and the agent are both going in the same direction, it might be a good fit.
#2. What types of training and continuing education does the brokerage provide?
By now, you probably know that continuing education is a priority and necessity of the job so it’s important to understand what the brokerage provides when it comes to continuing education. Do they allow mentorship programs? Mentors can teach new agents real-world scenarios and because legalities are always changing, agents need to understand best practices and keep mistakes minimal. Tip: eXp Realty does this really well.
#3. What are the costs?
I know I posted this under #3 but it really is one of the top questions. What are the commissions like, how will you build your business and what are the fees you might incur along the way? Ask about any hidden fees and ask other agents if they were surprised about fees once they signed on.
#4. What marketing materials are available?
Marketing is at the core of what agents do and many brokerages provide marketing materials but there are guidelines for the use of each. Brokerages may also delegate and dictate what words and images are best for promoting properties and protecting you from litigation.
#5. What are the commission splits and caps?
A brokerage cap is the amount of money an agent will pay in splits to the brokerage before that agent gets to keep 100% of earned commissions. While many brokerages offer this incentive to real estate agents, not all do. Some brokerages offer massive fees without a cap. eXp Realty is different in its approach to splits – Read more here.
#6. Does the brokerage offer training programs?
More than simply continuing education or mentorship programs, training is essential, especially for new agents. The last thing new agents want is to be thrown to the lions den and have to deal with things all by themselves. Training for different scenarios is key to managing the transaction and keeping things running smoothly.
#7. Is there favoritism in the office?
Your broker may not come right out and admit this but if there is favoritism between the agents, commissions for some and not for others, free training for top agents etc., this may be a red flag. If you are unsure, ask other agents in the office what they think of the brokerage and if they feel there is favoritism or nepotism going on.
#8. How big is the brokerage?
If a managing broker has a couple of dozen agents underneath them, that’s pretty manageable but what happens if the brokerage grows in the hundreds? Will each agent still receive the same amount of attention and consideration? Are there managing brokers that will split off and help other new agents and experienced agents?
#9. How is the administrative support?
Administrative support is huge when it comes to finding the right brokerage. Most offices will have administrative staff that will handle office details however, some admin support will also be in the form of a transaction or sales coordinator for agents such as inputting MLS information, follow-up, and contacting clients. Ask about the support and if you agree with the process.
#10. Does the company have a policy and procedure manual?
The last thing you want is to be a year or two into a brokerage only to discover there’s this manual that no one talks about but everyone should follow. Ask about this now and if it’s not automatically volunteered, that could be a red flag as well.
#11. Is there mandatory floor duty?
Will you need to sit at a desk all day at least one or two days a month? Can you work from home? What is the policy and what makes best use of the agent’s time?
#12. Are there restrictions on self-promotion?
Will each agent be able to promote themselves or the broker or both? Can each agent have their own website, picture on their business card and signage or is there major restrictions as to the location, frequency, and wording of the brokerage? Some companies have strict rules, which can be a dealbreaker for many brokers and agents.
#13. How are incoming sales distributed?
When a call comes in on a listing how are these calls handled? Do they go to the listing agent or an on-site buyer’s agent or to the general pool of agents?
#14. What is the average income of active agents in the office?
You’ve heard that old rule of thumb that your income is the average of your five closest friends and if you are in an office surrounded by other top agents and successful brokers, chances are you’re more likely to rise to that level as well.
#15. How are referrals handled?
Do agents refer each other, have a book of referrals when they are on vacation or out of town, and how do referrals happen out of the area? This is something to understand right off the bat because referrals will happen and possibly sooner than you think.
#16. What is the overall attitude and culture of the office?
Are you an agent that just wants to be left alone or do you need your hand held through most transactions? Regardless of which side of the coin you fall, you want a brokerage that gives you the freedom to do what you need to do and learn in the best possible way. An office that has a lot of new agents can feel energized but also a little chaotic. Seasoned veterans of the office can feel more stable but can also leave new agents isolated. A good combination of experienced agents and new agents can give you the best of both worlds but again, ask about the culture and see if it fits into your work ethic.
#17. What is the broker’s reputation?
Of course, the broker themselves is probably not going to be honest in this realm but asking agents in the office about the broker’s reputation and what they’ve heard in the industry can really give you a sense of what people think about the broker and the brokerage.
#18. What is the turnover?
If agents are constantly coming and going, there’s probably a reason. If the brokerage has seasoned agents that have been there for years, chances are that’s good news for your future.
#19. How are successful agents recognized?
If you’re out there all by yourself but succeeding, you probably want to be acknowledged for it. Top agents in eXp Realty and incentives so top earners and successful agents are rewarded, which incentivize all new agents to continue up the ladder.
#20. Are there any long-term benefits?
This might be in the form of stock options, investment opportunities, and other agents underneath you. If this appeals to you, this might be the right brokerage.
Remember, you can always move brokerages, but I hope these 20 questions have given you a good direction on finding the perfect brokerage in which to hang your real estate license. If eXp Realty seems like a good fit, give me a call. Let’s talk through these questions and find out if your next brokerage is right around the corner.
More Advice for Agents:
REDX for Real Estate Agents – Do I Need it?
How to Increase Your Real Estate Salary
What You Need to Know as an eXp Agent
Is Ownerly a Good Valuation Tool?
eXp Realty Stock 101: What you need to know as an agent
Contact Me At Any Time for More Information on Brokerages and Real Estate Agency
