| Selecting a Broker
Introduction:
There is probably nothing that will contribute more to your early success in the real estate business than the proper selection of a broker and an office. Each sales agent is different; and, therefore, must individually seek a broker who will allow him/her to achieve at the highest level possible. In most cases, it is wise to interview with several brokers before making a final decision. You will find that most brokers will be delighted to meet with you, and you should be equally grateful for the opportunity. The following are suggestions to make your interview productive and your selection a wise one.
Interview:
· Dress and groom yourself in the manner you feel a real estate professional should. The broker should see you as you will appear as a sales agent in his/her office.
· Be relaxed, but speak confidently and properly. How you act in the interview reflects how you will act with clients and customers.
· Interview the broker thoroughly, but leave his/her with the feeling that he/she is interviewing you . . . because he is.
· Answer all questions honestly. Don´t commit to things you will not be willing to actually do. When information s offered, feel free to pursue the subject until you are satisfied you understand completely and your underlying questions have been satisfactorily answered.
· Ask your questions in the context of the broker´s questions as much as possible. Nevertheless, do not be reluctant to discuss commission splits or working conditions. He/She expects you to be interested in making a lot of money. He/She knows that when you make money, he/she will make money. However, do not be overbearing.
Who will I work for and who will I work with?
The Broker:
· Do I like him/her? Will my personality and his/hers relate well? Am I comfortable with the broker? Do I like his mannerisms? Do I agree with his philosophy of business and life?
· Is he/she a competing broker? Is he/she actively engaged in working with buyers and sellers? If so, how much does his success depend on his/her own sales? In other words, will he/she have time for me or will he/she be a competing broker, competing against me?
· Will he/she be able to motivate me?
· Exactly how will I interact with him? Will he/she be my direct supervisor?
The Sales Manager and Staff:
· Is there a Sales Manager (or equivalent)? If so, what will my relationship be with this person? If there is a Sales Manger, then all of the questions for the broker should be answered about the Sales Manager
· What is the staff like? Will I like being one of them? A re they professional? Are they busy? Do they have time for me? Are they successful and working together? Do I feel comfortable with them?
· What opportunities or obligations will I have for floor time?
Location
· Is the location good for me? A location close to home is nice, but not always necessary.
· Is the location good for the type of business I´ll be doing (residential, commercial, leasing, etc.)
· Do I like the decor and arrangement of the office? Does it reflect the type of atmosphere I would enjoy?
· Is the telephone system adequate?
· Is there an MLS computer available for me to use? How many computer terminals are available in the office for how many agents? What other use is made of the computer that would help me in conducting my business?
· Where, in the office, would I meet clients? (Conference and meeting rooms.)
· What special equipment is available for my use, such as a copy machine, fax machine, microfiche viewer, plat maps, typewriters, property tax records, etc.? How much am I allowed to use them and what restrictions are placed on their use?
· What is my personal work area like? Do I have my own or do I share with others?
Earning Power and Office Policies:
· What is the beginning commission split? Is there a franchise fee?
· When does that commission increase and how much? Once I achieve certain levels, do I ever go back to a lower split, such as at the beginning of the month or year?
· Are there bonuses, contests, or other income possibilities?
· Is there an advantage if I sell an "in-house listing" (a listing held by the company you work for, but not one of your personal listings?"
· What is my commission split if I buy or sell property for myself? For my immediate family?
· Do I get the full bonus offered by other offices to the selling agent, such as ". . .$1,000 to the selling agent. . .," or ". . . a trip for two to Hawaii for the selling agent" . . . or will it also be split with the broker?
· What is the office policy for buyer and/or dual agency representation?
Expenses:
Start Up Costs:
$__________ Board of REALTORS ® initial fee
$__________ Board of REALTORS ® monthly fee
$__________ Real Estate License
$__________ Business Cards
$__________ Business Apparel
$__________ Other _________________________________________
$__________ Other _________________________________________
$__________ Other _________________________________________
· How, when, and where does the office advertise listings? Who pays for the advertising? What if I want to advertise on my own, will the broker participate? Do they advertise regularly in the newspapers, "Homes for Sale" magazines, etc.?
Performance of the Office:
· How many agents in this office are making their living exclusively from selling real estate?
· How many agents are making money on a part-time basis?
· How many listings does the office currently have?
· How many closings did the office have last month? Last year?
· Approximately how much did the top two or three agents make last year? How much did the best new agent make? You would be wise to interview one or two of these top agents.
· How many agents made over $25,000 last year? (Substitute any number you wish for the $25,000.)
Training:
(Be willing to pay for your training, possibly with a lower commission split to begin with, but make sure you get what you pay for.)
1. Classify your need for training and let the prospective broker know where you stand:
2. I am starting from scratch and need lots of training and ongoing support.
3. I´ve done direct selling before, but need real estate training.
4. I would like to be assigned to a veteran sales agent so I can go with him/her and have him/her go with me.
5. I will need occasional assistance on specific problems.
6. None
· What type of training is available?
1. Quick start (Usually three days to two weeks on half-day or full-day basis.)
2. The Board of Realtors training course.
3. Special in-house training.
4. Video tape training.
5. Audio tape training.
6. Sales Meetings (how much s business and how much is actual training?)
7. Broker or trainer availability
8. Mentor/Protégé (will an experienced sales agent be assigned to work with me?)
9. Seminars
10. Designations
11. Other: ______________________________________________
12. Other: ______________________________________________
13. Other: ______________________________________________
A Final Check
Ask for the names of one or two agents who have been with the company from six months to a year. Talk with them to get an idea of the effectiveness of the training program offered by the office.
· After you have narrowed your decision to two or three offices, request an invitation to attend a sales meeting. While there, get a feel for the "spirit of the office" which is probably one of the most important aspects of the work place. Observe, and determine if:
1. They like each other.
2. They are professional.
3. The broker is receptive to suggestions.
4. The agents are cooperative.
5. This is a group you would feel comfortable with and would like to work with.
Remember!
Real estate is a profession. The selection of your broker should not be based on any one of the questions suggested above, but an overall analysis. Your selection will have a great influence on the degree of success you will experience. Your broker, the training, and your office will make a significant contribution, but ultimately it is you who will be the greatest determining factor in your success. The degree to which you become professional depends on your willingness to learn and apply correct principles. There is no place you can begin that training in a more professional and enjoyable atmosphere than at . . .The Stringham Real Estate School. |