Lynn Cohen

Newly minted real estate agents may not be aware that they have a huge advantage the moment the ink is dry on their license. Real estate agencies are consistently looking to attract talented agents and brokers to their team and actually compete with one another to recruit top talent. Most new agents are unaware of this competition and approach initial meetings with office leadership as job interviews, when in reality, they should be interviewing the leadership to find the office that is most likely to have a clear vision and pathway for their success.
Here are five questions every newly licensed agent should ask before signing on the dotted line.
How does the compensation plan compare to the competition? Compensation plans are as different as the companies that sell real estate. Large, traditional firms offer to take care of their agents in exchange for more than 50 percent of the gross commissions generated. They have training on transaction management and provide company generated marketing and a recognizable brand. More independent models will pay an agent nearly all the gross commission income but support and training is offered on an a la carte menu and is paid for by the agents. This often includes a hefty monthly office fee for the right to belong. There are also companies that have found the middle ground. They provide technology and training and still can offer as much as 40 percent more net commission to their agents than traditional firms. Which one is the right one for you?
What will my first year of training look like? If you are going to join a real estate company, you want to make sure that you are properly trained in all aspects of the business, not just in basic transaction management. Look for a firm that has a proven track record for launching successful agents. At each interview, ask how you will learn the following:
How to prospect and successfully generate leads.
How to build a database that will be key to your success.
How to become an effective agent in command of every aspect of the transaction.
How to become a powerful and effective negotiator who advocates for the client.
How to manage your time for maximum productivity and still have a balanced life
How to manage your mindset in a tough and competitive business.
Simply shadowing a colleague isn’t going to give you all the information you really need to build a successful business. If the firm you are considering doesn’t offer an in-depth, holistic training curriculum, scratch it off the list!
Will I have a coach/mentor? Professional athletes have them. Top business executives have them. And smart real estate agents insist on having coaches and mentors to help them succeed in the industry. Coaches are individually invested in your success and trained to help you stay focused on those tasks most likely to produce results. Ask who will coach you through your first year in the business. Like marriage, the first year as an agent is the most difficult to survive – over 50 percent of newly licensed agents drop out during this time – and without a trained partner to bounce ideas off of or to cheer you on, it is even more daunting. A professionally trained real estate coach is a ticket to success, so don’t even think about joining a firm that does not offer coaching.
How are major decisions about policy made? You can tell a lot about a company by the way it makes major policy decisions. Is policy-making the result of a corporate directive, or is it a collaborative effort that takes into account the input and opinions of the agents who work in the office? Asking this question will educate you about the company’s corporate culture. Will you perform best in a top-down or a grassroots, collaborative culture? It’s always better to know what you’re getting into before you say “yes.”
What will it cost me to join your firm? There’s no free ride when you decide to go into real estate. This is perhaps the most misunderstood aspect of the business. As an independent contractor you will incur start-up costs: board membership, marketing materials, MLS dues and errors and omissions insurance, to name a few. While this initial investment can be daunting, it is ever so much less than most entrepreneurs must spend to launch any new venture. So make sure you are prepared for this outlay and have sufficient capability to take care of yourself for the first three to six months after you join a firm. Even superstars need time to ramp up! As you select the right office for yourself, look for a supportive and knowledgeable partner, one that can teach you to run a profitable business so that the financial investment you make is a sound one that will pay you dividends long into the future.
Choosing the right real estate firm on which to hang your license is one of the most important decisions you will make. Take the time to honestly assess which one is the best fit for you and which offers you the best opportunities for personal growth, professional development and a long, happy and profitable career.