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In order to undertake real estate transactions, the majority of jurisdictions need agents to obtain a sponsored broker. However, you should not hurry the choosing process since the business you pick has a significant impact on your success. As a result, we’ve put together a list of 20 critical questions for real estate agents to ask while interviewing brokers in order to help you advance your career.
In addition to these questions, we’ve given a few samples of responses that an agent could anticipate from a high-performing real estate agency vs responses that may signal it’s time to be cautious. Keep in mind that each brokerage is unique, so just because they give you a negative response doesn’t mean you should dismiss them. Instead, see it as a hint that you need to ask more follow-up questions to have a better understanding.
1. How Is the Commission Split Calculated?
The amount of money received by the agent and brokerage when a real estate transaction is completed is referred to as a commission split. Commission shares might be anything from 50/50 to 100 percent. There isn’t a particular commission split that is better than the others. You should, however, acquire a clear idea of how your income and costs will change at each brokerage.
Consider desk fees and expenditures for training, tools, promotion, insurance, and travel to receive all of the facts upfront.
2. How Much Does a Desk Fee Cost?
A desk fee is a payment made to your brokerage in exchange for real office space. Many brokerages charge a desk fee even if you are not compelled to utilize the office. Desk fees are optional at certain brokerages, such as Keller Williams. You may opt not to pay for real office space if you don’t want it.
3. What Are the One-time & Ongoing Fees?
Unfortunately, there will be charges connected with conducting business regardless of whatever real estate firm you choose to work with. Every real estate agent has membership and marketing fees, but each firm manages its funds differently. When you leave the brokerage interview, make sure you have a clear response, preferably in writing, as to what fees you will be accountable for.
Other usual charges, in addition to desk fees, include:
- Annual membership in the National Association of Realtors (NAR).
- Training
- Technology
- Fees for printing mailers, business cards, and other materials
- Errors and omissions (E&O)insurance
You may not receive the entire picture of how each brokerage will affect your income if you don’t ask inquiries about these costs.
Good answer:
“E&O insurance must be paid in a lump sum, you must pay for an annual NAR membership, and the technology fee is $100 per month.”
“I don’t believe there are any extra costs,” says the narrator.
“Think” is a word of warning in this example of a terrible response. A top-performing broker should be able to present you with a list of recurrent charges so that agents working under his or her supervision may plan ahead.
4. Can Commissions Be Bargained?
Everything in a real estate deal is negotiable from a legal standpoint. According to a CFA research from 2019, however, 73 percent of agents are unwilling to discuss their compensation. Even while buyers, sellers, agents, and brokers seldom negotiate, it’s still a good idea to ask your broker for specifics. Even if they do not bargain, they must be transparent and honest so that you may communicate the same to your prospective customers.
Good answer:
“We don’t negotiate commissions, and here’s why,”
“No, rates are not negotiable,” say with care.
While the brokers in both of these situations are hesitant to alter their commission agreements, the first broker’s willingness to give an extra explanation demonstrates that he or she prioritizes openness. It might also imply that this broker prioritizes training and mentoring by giving this information.
5. What Types of Training Are Available?
When interviewing brokers as a new real estate agents, one of the most critical questions to ask is about training and education. If you don’t have a lot of expertise or contacts, training and mentoring may make or break your real estate career. Some brokerages offer pre-established training programs for new agents, while others need the agent to choose a mentor on their own.
If you’re already a licensed agent but can’t seem to get your career going in the right way, Kaplan’s professional development courses might help. The Career Accelerator was created to assist new agents in developing a business and marketing strategy from the ground up in order to get their careers off the ground rapidly.
6. Is there a policy manual for the company?
Every business should have a policy handbook. Whether you’re interviewing with a franchise brokerage, a boutique, or a virtual brokerage, you should read the manual before signing any contracts. This document will show you the brokerage’s standards and beliefs, as well as its regulations and expectations.
If you want to broaden your real estate expertise beyond working as a buyer or seller agent, you should read the handbook before deciding to join a firm. For example, you may go through the manual to discover whether the brokerage has any regulations or limits regarding real estate investment by agents. If you intend to buy a rental property as an investment, you should know how the listing and commission will be paid ahead of time.
Good answer:
“Yes, here’s a copy for you to go over,”
“No, we don’t have a policy handbook,” says with care.
7. Is there any administrative help available?
A licensed real estate assistant or administrator is employed by most brokerages to assist with paperwork, answering phones, arranging appointments, organizing supplies, and other tasks. Having an office helper during your first few listings can save you time and help you keep organized.
Great real estate brokerages, on the other hand, may not have a real estate assistant but are still fantastic places to work. Many of these responsibilities are likely to fall on the real estate broker and agents if the firm does not employ an assistant. In this scenario, make sure you acquire all of the information you need regarding the administrative tools and assistance that will be provided to help you manage your workload.
Good answer:
“Yes, our assistant is licensed, works Monday through Thursday from 8 a.m. to 5 p.m., and is responsible for particular responsibilities.” OR “We don’t employ a real estate assistant, but here’s how we divide up the administrative responsibilities.”
“No, we don’t really bother about the administrative side of things,” says with caution.
8. How Do You Concentrate Your Online Marketing Activities?
According to a 2019 research by the National Association of Realtors, 93 percent of all homebuyers used an internet website to look for their property, and 76 percent utilized a mobile device to do so. It is critical that your real estate agency use an internet marketing plan in order to create leads and get their listings seen.
With an efficient marketing approach, you can generate new leads, convert them to customers, and expand your network and reputation over time. The ideal approach to achieve this, however, will be determined by your region and target market. A competent managing broker will have in-depth knowledge of which marketing methods work and which do not in your area.
Good answer:
“We’ve discovered that social media marketing is the most effective method to interact with first-time millennial homebuyers, and our email list helps us nurture prior customers,” says the expert.
Proceed with caution: “We don’t concentrate on getting visible online since our business comes from friends and family.”
While the strength of a referral network is critical to any agent’s success, each year more and more business is handled online. In addition to the danger of running out of leads, a brokerage that ignores its web presence risks being seen as outdated or untrustworthy.
9. What Software or Technology Is Available?
Franchise and virtual brokerages often provide free access to real estate technologies such as customer relationship management (CRM) software to their agents. Boutique brokerages, on the other hand, may not have the same degree of financing as larger brokerages in order to give the same tools to their agents. You may be incredibly successful without having every tool available, but you should understand which tools are the most critical and how your brokerage can assist you.
Good answer:
A good response is that a successful and reputable brokerage might make use of a variety of tools and technologies. Seek brokers who can tell you exactly what tools they use and why they choose them.
Laura Rittenberg, President of Coldwell Banker Realty in Atlanta and the Carolinas, for example, described the resources available to agents as follows:
“Listing Concierge is one such example. This is a unique marketing package that lets agents contact buyers quickly and virtually via a property video tour, dedicated property website, internet advertising, targeted email distribution, social media postings, and more, provided by marketing professionals on our agents’ behalf. Listing Concierge-marketed properties sell for 50% less than the asking price and sell for 2% to 7% more than the asking price.
Market Leader is another amazing product that allows agents to monitor leads and communicate with customers. We also provide exceptional products to help our agents stand out among other brokerage agents and leverage as part of their value proposition, such as RealVitalize, a program in which Coldwell Banker has partnered with HomeAdvisor to provide home sellers with prescreened home service professionals prior to or during the home listing period with no upfront costs or interest charges.”
“We don’t utilize technological tools because we don’t believe they’re vital,” says the author.
Is Attendance at Meetings Required?
You are an independent contractor as a real estate agent, and you do not have the same duties and expectations as an employee. You will, however, be responsible for adhering to certain rules set out by your sponsoring brokerage, such as obligatory meetings.
Think about how you want your real estate career to develop. This may be a good match for you if you love meeting with your coworkers and are looking forward to receiving training and developing mentor connections. If you want total control over your schedule, a virtual brokerage like Real may be the way to go. This 100% mobile brokerage provides you with tools and assistance but does not need you to meet in a physical location.
11. How many agents do you have on staff?
Keep in mind that the number of agents at each brokerage varies depending on the kind of brokerage. Boutique brokerages may only have a few agents on staff. Despite the fact that franchise brokerages employ thousands of agents around the nation, you will likely only deal with a limited number of them in your unique office location.
12. How Many Agents at This Brokerage Work Part Time & Full Time?
Think about how you want to approach your real estate profession. This inquiry may identify which agents and work habits are most appropriate for that brokerage. If you want to work part-time, for example, you probably don’t want to join a brokerage where every agent works more than 40 hours per week. It’s crucial to consider how your brokerage will fit into your daily routine.
13. How many years of experience do your agents have on average?
Working with more experienced agents may provide you with a wealth of knowledge if you are a new agent. According to Zillow, 80% of rookie real estate agents fail within the first two years. If you want to be in the top 20%, you need to surround yourself with agents who have figured out the ropes and know how to win in a competitive market.
Good answer:
“We appreciate having fresh agents, although many of our agents have 10-plus years of real estate expertise,” says one good response.
“All of our representatives have less than a year of experience,” warns the company.
While hearing that the majority of the other agents in the brokerage are at a similar stage in their careers may seem appealing from a team-building standpoint, an agent joining a young business like this one may lose out on mentoring chances. Furthermore, if the brokerage is established but the workforce is young, this might imply a high level of turnover caused by inadequate management.
14. Have Your Agents Been with This Brokerage for a Long Time?
Although you do not need to remain with one brokerage for the duration of your career, it is very advantageous to choose one that can assist you in starting and growing your profession for many years. This question is a fantastic method to see how effectively the brokerage supports agents with varying levels of expertise.
If the brokerage does not have agents who have worked with them for more than a few years, feel free to inquire further. You could learn that the company’s high turnover rates are due to a legitimate cause. For example, you may want to know whether the business has had any agents retire after earning six-figure wages.
15. What is the current number of listings for each agent?
Although a brokerage may have a huge number of listings, the specifics of those listings are as significant. While most brokerages have a few top producers, it might be an issue if one or two agents have the bulk of listings while the rest of the agents are having trouble finding any. This might indicate that the brokerage is failing to assist and inspire agents.
16. How much do your agents make on average?
While a managing broker is unlikely to know specific statistics for each agent off the top of his or her head, he or she should have a basic idea of how much volume each agent generates. A broker who offers you a very broad number and refuses to go into any more information regarding his company’s development may not be as knowledgeable about it as you think.
Good answer:
“Many of our full-time agents earn between $70 and $100,000,” is a good response.
“They probably all earn $50,000,” says the narrator.
Real estate brokers’ earnings might vary dramatically based on the hours they work and the amount of effort they put in. While a higher average income is unquestionably a favorable attribute in a brokerage, don’t make your selection only on the basis of this numerical number. Take into consideration how many hours the agents work, the general office atmosphere, and how it aligns with your own working style.
17. Is there a chance to be mentored?
As a rookie agent, having a mentor will be one of the most important tools you’ll ever have. A mentor who is familiar with your industry and target market will be able to provide you with incredibly relevant and useful advice to help you learn more rapidly. Some brokerages provide a six- to a 12-month mentoring program.
Even if there isn’t a structured program, there may be chances for mentoring. Inquire about the broker’s leadership style and management experience. A managing broker that takes joy in their team’s performance is a solid predictor of a high-performing real estate firm. Rittenberg, for example, explains her experience as follows:
“Before joining Coldwell Banker, I managed sales offices for two national franchises, owned and operated two independent real estate companies, a mortgage company, and a real estate licensing school, and prior to joining Coldwell Banker, I managed sales offices for two national franchises, owned and operated two independent real estate companies, a mortgage company, and a real estate licensing school.” This business, our agents and support team, and Coldwell Banker’s Core 4 Values are all things I like. More significantly, I’ve put up an unrivaled leadership team dedicated to assisting our agents and helping them reach their full potential.”
18. How Would You Describe the Company Culture?
As soon as possible, you want to gain a strong sense of the company’s values. While you can’t assess everything in one meeting, you may see how people interact in the workplace and listen to the broker explain the culture. Some brokerages have more competition than others, which you should be aware of ahead of time. You may learn more about a brokerage’s culture by asking follow-up inquiries about its history and principles.
Rittenberg was able to give the following insight into Coldwell Banker Realty’s culture when questioned about the company’s history, ideals, and what sets them different from other brokerages:
“The founders of our firm thought that a successful real estate business could be run by doing the right thing for buyers and sellers. Our Core 4 Values (producing power, coaching to confidence, wealth builder, and culture of awesomeness) satisfy our customers’ every real estate demand in the end, particularly during this epidemic. Following the advice of the CDC and local government organizations, the health and safety of our communities, employees, associated agents, and customers we serve remains our top focus.”
19. What Are the Brokerage’s Short- & Long-term Goals?
All successful individuals and businesses have clear objectives and strategies for achieving them. At every step, the brokerage you pick should be aiming for development. Pay attention to how the broker speaks to you about their objectives and future ambitions.
20. How Are Leads Distributed & Qualified?
When a buyer or seller seeks assistance from a brokerage, they have many options for transferring the lead. The manner in which they do so might disclose a great deal about how the brokerage is conducted. According to an Inman survey, 60% of real estate professionals believe their firm distributes leads unfairly.
Many alternative lead distribution strategies may be beneficial, but it’s critical that your brokerage has a clear and equitable structure in place. Laura recommended that Coldwell Banker Realty utilize an app called CBx Seller Leads to provide lead analytics to its brokers. As a result, if you want to choose a brokerage that can assist you in gaining a big number of high-quality prospective customers, this is an important question to ask.
“We employ an automatic system that rotates the distribution of each lead,” is a good response.
Proceed with caution: “I usually simply give them to whoever happens to be there at the moment.”
Conclusion
Your real estate brokerage interview is a fantastic way to learn more about each agency. Make a list of your questions, write down the answers and anything else that comes to mind, and then think about what sort of brokerage would be the greatest match for your real estate career.
