1. Don’t wait.
Most soon to be real estate agents wait until they pass the real estate exam to get started interviewing with real estate brokerages. While studying for your exam you should also be putting together a spreadsheet of potential real estate brokerages you could be working for.
2. Don’t be afraid to ask about the commission split and “Cap”.
All brokerages you’re potentially going to be working for are going to take a cut of your commission. Here’s an example of a 60-40% split with 40% going to the brokerage.
Selling a $300,000 home with a 3% commission
You take home 60% of the 3% – $5,400
Your broker takes home 40% of the 3% – $3,600
Most brokerages also have a cap on how much commission (Typically between $15,000-30,000) they’ll take from you each year. This will usually reset to zero on the first of each year. Don’t be afraid to ask about this and enter it into your spreadsheet.
3. Ask about leads.
As a new agent most of your leads will come from things like open houses, but you should also ask if your broker will provide you any leads to get started. Sometimes as a new agent it make sense to join a solid team if they’ll give you leads even if the commission split gives more to the brokerage.
4. Think about joining a team.
If you search on Google you’re likely to find some of the top performing teams. These “teams” are usually under a larger broker, but have formed their own team. Here’s an example from Google –
These teams might be more likely to provide you leads and mentor you as you get started.
5. Ask about training.
One benefit to joining larger brokerages like Keller Williams is that they do provide lots of training classes. Classes and courses are great, but there is no substitute for hands on training with a mentor. Sometimes it’s better to join a smaller brokerage or team that will provide on the job training, let you shadow them, and help you fill out your first contracts.
6. What are the monthly fees?
Most brokers charge monthly fees for technology, administrative expenses, etc around $75-150 a month. It’s an important question to ask because these along with realtor association fees, E & O insurance, signs & advertising expenses add up.
7. Remember you’re interviewing them as well.
You may be nervous that no one will hire you after you pass your exam, but the majority of brokerages are looking to build their teams and increase their sales volume. They’ll be trying to sell you on joining them as much as you’re selling yourself to them. Don’t stress out too much over your decision. If you’re unhappy you can always switch brokerages easily.
Don’t wait to start building up your CRM (Keeps track of leads and reminds you to follow up) and your e-mail list. Reach out to as many people as possible, let them know you’ll be an agent soon, ask for their e-mail, and ask if they’re interested in buying or selling soon. After you get that information enter it into your CRM and Mailchimp.
Mailchimp allows you to store up to 2,000 contacts for free and you can e-mail them monthly to keep them updated on what you’re doing. Pipeline will let you store as many contacts as you want for just $9 a month and remind you to follow up.