Selecting A Real Estate Broker
One of the most important choices you'll make is choosing the best Real Estate broker to affiliate with. This decision takes time, research, and plays a key role in an agent's success. Generally speaking, most market areas consist of multiple brokers and/or choices. Finding a suitable broker and/or firm should not be considered difficult.
Things to consider:
What is the company's market share?
All brokers should have an idea of what percent of the local market they participate in. In general, the percent is determined by the number of homes listed/sold per 100 homes. An example would be 16 out of 100 - or 16%.
How am I compensated (commission splits, rental fees, bonuses, etc.)?
Most agents are recognized as independent contractors and only paid when the property closes. The amount received is directly related to the broker's commission policies and/or schedule. Brokers have specific policies on how commissions will be divided between the broker and agent. Ask for a copy during your interview.
Is the compensation agreement a fixed amount?
Generally not, most brokers have a progressive commission schedule. Basically the more you earn, the more you keep. In addition the broker may pay for a larger share of the agent's expenses, advertising and/or supplies.
Is/what is the cost for training?
Depending on the broker you choose may/will determine the answer to this question. Generally speaking, the larger broker the more frequent and free the training events will be.
Does the firm carry an Errors and Omissions insurance policy?
Most states require this protection, however some companies still do not have it. It is extremely important you understand the company's E&O policy and how you are protected from liability. Errors and Omissions (E&O) insurance protects Real Estate firms, agents and staff members from liability in cases of negligence or incidents in which errors are made in spite of all effort to act in a legal, ethical, and appropriate manner.
When choosing the firm to work with, consider the following:
Are they reinvesting in you/the company?
Are the continually updating marketing efforts?
Are they updating office amenities? Computers, Space, etc.
The first impression: If the atmosphere of a facility does not attract you or make you feel comfortable, it is likely that consumers will feel the same.