How to Choose a Real Estate Brokerage

10 Questions to Ask Before Choosing a Brokerage

Give yourself the best chance for success by finding out how to choose a real estate brokerage with these 10 most common questions.

The first step in a successful real estate career to choose the right real estate brokerage for your needs. There are so many differences between agencies, it can become downright confusing. Many new real estate agents base their decision on the lowest commission split, and that usually isn’t the right choice for a newer agent. We highly recommend that you meet with at least a couple of different brokerages and do your research on each one prior to making a decision.

For most new agents choose Keller Williams Realty because of the unparalleled education. If you make the wrong choice early in your career, you will most likely be out of business within the first 18 months. Our goal at Keller Williams Realty, is to do everything possible to help you achieve success and realize your dreams.

Choosing The Wrong Brokerage is Like Shopping at The Swap Meet!

Here Are 10 Questions To Ask When Interviewing Different Brokerages

1 Ask to see the monthly training schedule and ask if there is any cost for the core training that will help you start your real estate career.

2. Find out if the classes are online, or in person. many Net (Internet) and other virtual brokerages do not offer live training, so you’ll be cheating yourself out of live interaction.

3. Do you have a transition plan? A transition plan is helping you create a career in real estate while you transition from your existing job?

4. Ask if there is a mentorship program? if there’s no mentorship program, it’s best to move on and choose a different brokerage.

5. What are your brokerage commission splits? Don’t get too hung up on the split, because the lowest split is most likely not in your best interest. If you choose 100% brokerage, you will end up spending more money in the long run. Most 100% brokerages will nickel and dime you with additional fees. Since there is a high failure rate for new agents, you want to choose a company with a proven tract record of success. KW has a very successful track record for those who are serious about building a real estate career.

6. Do you have a Commission cap? A commission cap is the maximum amount of commission a brokerage will charge you year. For example, if the cap is $18,000 and you generate $150,000 in gross commission, you will net $132,000. If a cap isn’t offered and you are on a 70 / 30 commission split, then your brokerage would keep $45,000 and you would net $105,000.

7. What other brokerage fees do you have? Some of the more common fees include” desk fees, MLS fees, errors in omission insurance, startup fees, other miscellaneous fees.

8.Ask what is included when you sign up?

  • Will you get your own website? Be careful when you ask this question because many brokerages will give you a page on their website, which is not the same thing.
  • Do you offer a CRM (customer relationship manager)?
  • Do they provide leads?
  • Where are the conference rooms to meet with clients?
  • What kind of transaction support is offered. Ask if you go into a virtual queue, or if you are dealing directly with a live broker. This is one of the biggest gotchas that can cost you a hefty commission. If you’re not able to get through to someone in the middle of a transaction, It could cost you $15,000 to $20,000 in lost commissions.
  • What marketing resources are offered. Do you have Social Media Management tools, flyers, a marketing platform?
  • When you have a listing and someone calls into the office, who gets the buyer lead? – This is another costly mistake for new and seasoned agents. Many brokerages will grab your buyer lead and you’ll never know the difference. At Keller Williams Realty, if a buyer calls the office from one of your listings, the lead we’ll go directly to you. It’s called, your listings your leads!

9. Ask about the company culture. Most agents stay at Keller Williams because they become highly successful, and they love our culture. Culture is a hard thing to explain, you have to experience it.

10. What are your expectations of me as an agent? Am I required to make a certain quota?

In summary, if you choose the wrong real estate brokerage, if could cost you thousands of dollars in lost commissions, and it might even cost you a lost career. Over the years we’ve seen many new agent choose 100% or virtual brokerages because they are so focused on the SPLIT. Most of the new agents will be back to working a 9-5 job within 18 months. Give yourself the best chance for success by choosing Keller WIlliams Realty as your brokerage.