Hey y’all!
Happy Monday or whatever day of the week it is when you read this. Today I wanted to write a post about a topic that has REALLY been going over and over in my head over the last two months as I’ve made a brokerage move. I’ve also had more than 5 people reach out to me and ask me about becoming a Realtor so I think this is a hot topic and something I want to get out and into the public sooner rather than later. Here are 3 things I wish I had known before becoming a Realtor.
Also, this is going to be a multiple-part series so please bear with me. 😉
First off, I’m a new(er) agent, and that’s no secret as I’ve made my transition, errrr or should I say fall, from Warehouse Managing and Logistics to licensed real estate agent. 😉 IYKYK right? Ha! Although I’m a newish agent, I know there are many out there that will share these same thoughts on what they wish they had known as well.
For starters. Real Estate School teaches you nothing about selling real estate. Basically, it just teaches you how to stay out of jail. So take it seriously. But you’re actually going to learn ALL THE THINGS when you graduate and get into the market. And that leads me to the first thing I wish I had known before becoming a Realtor and the first part of this series.
Research and interview multiple brokerages.
Woah, if this could be number 1 before the 1, it would be. I did NOT know or realize that all brokerages were not the same. That is a HUGE understatement. I also didn’t realize that YOU should be the one interviewing brokerages to see what they offer YOU as an agent and what they are doing to help YOU grow your business.
When interviewing a brokerage, here are questions you should be asking the principal broker.
- What is the brokerage culture like?
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- This for me is a big one. I’m very much a team and a people person. I like community, good vibes, a positive and kind culture, and colleagues that are supportive and not competitive. Fellow agents should not be your competition. They should be your peers, your mentors, and your support system. If you don’t feel comfortable asking the principal broker about the culture, reach out to a few agents that are a part of that brokerage. What do they say about it? Have they been there long? Is there high agent turnover? Feel out your peers.
2. What kind of training is available and how is it aimed to help new agents?
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- After getting your license you have 60 days to find a brokerage to hold your license. You’re not going to know jack shit about selling real estate after you graduate so you need to do some research and ask other newer agents how they got going and what their training programs were like. A good brokerage will have a complete training program along with mentors and staff that will help you through your first several months. They should have one on one training, office training, online training backlogs, and a path to help you get your career started.
- Brokerages serve you, the real estate agent just as much as you serve them. If you feel like you don’t have access to proper training or resources then you should re-evaluate if you really want to work with that brokerage.
3. What are the office fees and splits?
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- Of course, this is the big one. Everyone wants to know about the money aspect of it all. There are a few things to think about when discussing splits with brokerage and team splits. Not all brokerages are the same when it comes to splits and not all teams are the same when it comes to splits between the team and the brokerage. A lesson I learned the hard way.
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- Brokerage/Agent split. What is it? 70/30? 75/25? 80/20? 50/50? Honestly there are tons of different splits but here is what you really need to consider. WHERE IS YOUR BROKERAGE SPLIT MONEY GOING and how is it helping you as an agent?
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- Brokerages have operating expenses, of course. So you know that’s part of it. But what about the rest? Are they giving you any marketing tools? Are they sending out postcards for you and your listings? Do you get office space? Do you have a WORKING printer that you can use free of charge or is that extra? Do you get a desk? Is there a CRM? What about online leads? Are your listing photographer services included? What about staging? Are buyer and seller packets available or do you need to make your own? Do you have to buy your own business cards, name riders, yard signs? Remember, you’re giving up part of your commission so you need to make sure you’re utilizing all that is available to you and if you’re paying a large split but not getting any of these, you need to ask why.
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- If you join a team, you are also subject to a team split. So essentially you could have a team split that is 50/50 but in addition to that, you could also still have a brokerage split that could be anywhere from 5% to 10% of your commission. Plus office fees monthly. Y’all, I’m not kidding. You could essentially be giving up 70%+ of your commission. Make sure you’re doing your research and make sure you understand the team structure. If you decide to join a team here are some things I would consider asking.
- What is the benefit of joining the team?
- What is your team split going towards?
- Are all team members treated equally and fairly and are they all on the same splits? This is a big one for me. If I’m on a team and we’re all going towards the same goal but they are starting out at a split that is 80/20 or even 90/10 yet here I am at 50/50…how is that fair? What motivates them to come into the office every day and hustle the way I’m hustling to get to my next 60/40 break? Something to consider.
- How are call-in leads distributed? Is it a round-robin? Does one person take all the call-in listing appointments? Is there a team manager? What is their role? Do they get all the “high” dollar call-ins or are those rotated? Who decides who gets leads? Is it an ultimatum? If you don’t come to the office, you don’t get the leads? Ask. The. Questions.
- What happens if you leave the team or brokerage? How are your splits handled? What about your leads?
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- Lastly, for now, how are commissions split if it’s one of your family members or friends that you buy or sell to? Is the commission split the same? If your brokerage says yes, and you have a HIGH split, I would reconsider brokerages or negotiate your agreement. Remember, part of your split is probably going towards some online lead generation so if you’re bringing in the clients, your split should reflect that on that transaction.
That’s all I’ve got for today y’all. I honestly didn’t think part one would be all about brokerage selection but apparently, I have some things to say and I want anyone starting out to be maybe just a little bit better informed than I was. 🙂
To find out more about my awesome brokerage and the cool things we do, check us out online!
Until next time……
