Posted by: Jim Normile, CRB, E.MBA, JY Monk Real Estate Instructor
Updated: December 29, 2017
Congratulations! You passed the state licensing examination and are now ready, willing and able to join the ranks of one of the world’s oldest professions. Getting started can be a confusing and overwhelming process, combined with the critical decisions that need to be made early on.
The real estate industry is unique in regard to the many pathways you can take as an agent. Some agents work independently from a home office, while other agents opt to work for independent, regional, or national franchise firms. Your first task is to decide where to work.
An interview with a real estate brokerage isn’t a typical job interview. The real estate brokerage house needs you as much as, or more than, you need them. So this is your opportunity to ask questions and figure out if the brokerage is the best place to start your real estate career. When interviewing brokers and brokerage firms, the following questions and topics will help you learn more about what it’s like to be a broker at this particular brokerage, and whether or not it’s a good fit for you.
Each brokerage house operates differently in regard to commission splits, bonuses, property management commissions, office fees, desk fees, franchise fees, lead generation fees, technology fees, referral fees, insurance fees, and so on. When interviewing, there are two key components of the equation to understand in regard to commissions and fees:
Key point: Do not prioritize the commission split being offered as the number one reason to join a firm. Ask yourself, even if the firm paid you 110% of all commissions generated, but you had no access to leads, walk-in traffic, formal training, referrals, mentoring, and so on, what are your realistic odds of initially generating income? They’re probably not very good. A 110% commission split of zero dollars generated equals no income.
Consider the following in regard to location:
Consider the following in regard to the culture of the brokerage:
Consider the following in regard to technology:
Consider the following in regard to training:
Consider the following in regard to marketing and advertising:
One of the most fundamental and common questions new real estate agents ask is, “Should I work for a franchise or non-franchise (independent) real estate office?” I have managed and owned both, and each model possesses advantages and disadvantages. Each market center also views each model subjectively. Here are some basic pros and cons to consider during your due diligence process.
Franchise Office (e.g. RE/MAX, CENTURY 21, etc.)
| PROS | CONS |
|---|---|
| Name brand recognition | Less freedom in some advertising initiatives |
| Advanced internet-based resources | Less freedom in some branding and marketing |
| Larger U.S. and/or global listing inventory | Higher costs and initiation fees |
| More formal and web-based training available | Less agent input to corporate leadership |
| Access to national/regional client referral programs | Referral fees |
Independent Office (eg. Jacksonville Realty, The Smith Group, etc.)
| PROS | CONS |
|---|---|
| Flexibility | May be resistant to change |
| Lower cost to agents | Smaller intra-referral network |
| More freedom in advertising initiatives | Fewer internet-based training programs |
| More direct input to ownership | Depending on market, less brand recognition |
Always remember that customers, clients, and rival brokers will seek you out either by referral, as a community real estate placemaker, or because you have proven yourself worthy. Your success in real estate will depend more on your initiative and ability than the brokerage where you choose to hang your license. In light of that, choose a brokerage whose business model best matches your needs.
Jim Normile has worked as a broker, sales manager, real estate instructor, and co-owner of two franchise offices. He has listed and/or sold over 4,000 homes. Jim holds a Bachelor of Science, Real Estate, Summa Cum Laude, and Executive Master of Business Administration diplomas. He has been recognized as a Realtor of the Year, featured in Top Agent Magazine, nationally ranked in The Wall Street Journal Top Agents in America, inducted into the RE/MAX Hall of Fame, and is the author of Responsible Influence in New Home Sales.
Get the information and advice you need to make an informed decision about starting a North Carolina real estate career. We asked three successful real estate professionals what they wish they knew about being successful in real estate before they earned a license and started a career. We compiled their advice into this valuable resource, and it's now available to you, completely free. Start your real estate career with confidence!
