Narrow Down to the Brokerages You’re Interested In

Even in the smallest markets, there are dozens if not 100s of real estate brokerages to choose from.

First, consider what is important to you and narrow it down.

What kind of brokerage do you want? A quick list of each from my article on how to choose a broker:

• Franchise
• Indpendent
• Discount
• Flat Fee
• Virtual
• Service
• Salaried

From there, you’ll want to consider commission caps, support, mentorship, expectations, and culture.

These interview questions will help you dig in to get these critical answers.

Questions to Ask When Interviewing a Real Estate Broker

What is the commission split? Does it change based on production? Is there a commission cap?

Commission splits can range from brokers taking a majority of your commission to 100% commissions models that just charge you by the transaction.

A “traditional” commission split is probably 70/30 or 80/20, the latter number being the amount the broker keeps. Commission caps of $10,000 – $30,000 are typical, too, meaning that you will pay no more than that amount total in a calendar year.

More lopsided commissions, like 40/60 or 50/50 might be normal if you are joining a team whose lead is giving you lots of leads and training.

Some commission splits are progressive, e.g. starting at 70/30 and then increasing as you hit more production targets, rewarding your productivity.

[if yes] When does the commission split reset?

Important for knowing when your commission cap resets, or a progressive commission split resets (if it does), common reset dates are your license anniversary, anniversary on joining the brokerage, or just the calendar year.

Are there any other fees like E&O, transaction fees, marketing fees, desk fees, etc?

Some brokerages are notorious for hiding fees outside of the commission and cap structure.

Be sure you’ve captured the full picture of what money your broker will be taking from your closings.

Bear in mind, some brokerages have optional services you can pay for, like transaction management or social media management. That is not the same as nickel and diming you but a serivce that may be worthwhile to you!

Does the brokerage generate its own leads? How?

A brokerage generating its own leads can be good or bad.

It’s bad if those leads are not a central pillar of your own lead generation strategies.

You are likely paying for these leads in one respect or another. Why pay for leads you are not benefitting from?

If you are getting dozens of leads a month, then expect to pay higher commission splits to the broker.

[if yes] How are lead disseminated?

If your business does rely on real estate broker leads, especially for newer agents, then get clarification on how these leads are disseminated and how many you can reasonably expect. Is it first come first serve? Round robin?

Ensure you as a new agent to the brokerage will get the leads you expect.

When are mandatory meetings and what do they cover?

The real question you are asking is whether your time is going to be respected or not.

Brokerage meetings can be notorious wastes of time.

The broker’s answer will give you a sense of the brokerage culture and training.

How many agents would you say are part-time versus full-time?

Does the brokerage have part-time agents? Do they even allow anyone who is not a full-time agent?

There are pros and cons depending on what you are looking for.

It may be a bad sign if a brokerage has a high concentration of part-time agents. They may have a “fog the glass” mentality when it comes to agents, casting a wide net and hoping a few hit. Their resources may be spread too thin to adequately support agents.

Meanwhile, if you are getting started as a part time agent, you may need to limit your choices to those who are open to part time.

Do you know the average tenure of an agent here?

Agents change brokers as often as they change underwear, it seems.

Combined with an extremely high dropout rate in the industry, a brokerage with agetns who have been on board 3+ years is probably doing okay.

What are the top 5 methods agents generate leads here?

Are there successful agents in the brokerage who match your own prospecting style?

Is there a mentor program that can pair you with an agent who is succeeding at what your business goal is?

Is there floor time available or required?

Floor time is getting pretty old fashioned! Once upon a time, floor time was highly sought! Real estate buyers and sellers just walked right into the office looking for Realtors!

I’m sure that still happens, and some may still be keen on floor time. But it probably isn’t going to be a major prospecting pillar for your business.

Find out what the deal is on that with your brokerage.

What is the median GCI for an agent?

Getting an idea of how top agents are doing in the brokerage is an obvious way to identify whether you will be surrounded by winners.

It can also be a good test as to whether your broker knows their business numbers (they should!).

How is training and continuing education (CE) done?

What does the broker do for training?

Depending on your time in the business, you may prefer a hands off broker who lets you figure out your CE and training for yourself.

Most will have some minimum training as parts of their brokerage for legal CYA.

When do I have access to the broker?

What is the agent : broker ratio? Is it 10 : 1? You’d reasonably expect to get as much interaction with your broker as your heart desires.

Is it 100 : 1? You might get sent to voicemail, and can probably expect a response text in a week or two.

What are the brokerage’s goals and where do you see it in 5 years?

Understanding your broker’s goals is critical to understanding if they are a good fit.

Are they trying to expand headcount? Or shed low performers to focus on the top producers?

Are they distracted trying to open new offices or build the ultimate website in their market?

Do you have property management? How are owner leads managed?

A good chunk of your leads may be better fits as renters or landlords.

If your brokerage also has property management, that is a great way to accommodate their needs while you continue to market to them until they are ready to buy or sell.

You’ll want to find out if you get a referral fee for these owner referrals.

You’ll also want to market to these homeowners and ensure that they will be referred back to you if for some reason they reach out to someone else in the brokerage when ready to sell.

Conclusion

I recommend interviewing and choosing a broker to be one of your first steps in obtaining your license. A supportive brokerage will be critical to fast tracking your journey to becoming a top real estate agent.

A broker can advise on where to get your license and the first steps to setting yourself up for success.

Be sure to see my guide on becoming a Texas real estate agent if you are working in the Lone Star State!