I am going to list her questions and discuss the importance of them in the hopes that any potential new agents, or agents looking to choose a new company, will find them helpful.
1. Are all
agents scheduled for floor duty, and if so, how often? This is important to give you an idea of how often you will have the opportunity to find new business. As a new agent, you don't walk in the door with business. Having opportunity to find new business is important. Floor duty is also a great chance for you to hone in your skills in talking with people about real estate. An equally important question to follow up with is, "How many floor duty leads are converted to actually closings in your office each year?"
2. Are phone leads, walk-in customers, and referrals given to the agents on duty when those leads come in? If not, how are they distributed? Again, just as with our first question, this is important as a new agent for you to get you off the ground and running. It is also important to know how leads are distributed in the office. Is this something that is done fairly? What can you do to earn this kind of business?
3. Does the firm pay for the typical agency ad, where listings are showcased, or are you required to pay for the space occupied by your listings? Does the firm pay for any portion of personal ads? Does the firm have a bulk mail permit? As a new agent, you are spending almost $1500 just to start in the business. You have to pay for pre-licensing, board dues, MLS dues, license fee, etc. It's expensive, so knowing what fees are associated with your company are very important. It is also important to know that your company has a progressive approach to the marketing of their listings as this will be a huge selling point when you go on your listing appointments.
4. What commission rate does your firm offer? Are commissions paid on a sliding scale, with the percentage you earn increasing as you bring more income to the firm? This is absolutely an important question. Obviously, what portion of money you take home is going to be important to anyone. Although, this is not the most important part of a particular company, you need to be with a company that has competitive commission plans. You have to way the pros and cons of what a company has to offer it's agents and what the net commission split is to the agent.
5. Are commissions paid immediately upon closing? Lot's of agents, especially new ones, may go a month or two in between closings. So when they do have a closing, they need that money to pay their bills. You want to be with a company that has a very quick turn around between the time you hand that commission check and and the time that money enters your bank account.
6. If the firm is part of a franchise, what percentage of each commission earned is retained as a franchise fee? This again goes back to the fees associated with your company. Is your company privately held or is it a franchise? You need to know the costs associated with your company before choosing to affiliate with it.
7. Who pays for stamps, photocopies, and basic office supplies? As a new agent, expenses are going to be very important to you. If one company offers you a 70% split, but you pay for all of your copies, office supplies, stamps, marketing efforts and more, your net split really isn't 70%.
8. Does the firm charge agents a flat monthly fee, or a percentage of certain expenses? What about Errors and Omissions insurance? You can see the recurring theme of the costs associated with doing business for the company in this agent's questions. I appreciate the detail and thought that went into them. Does your office have a desk fee. Do you pay monthly or annual E&O coverage? Or are these fees built in the transaction fees, so it's a pay as you need them kind of fee?
9. On average, what is your company's turnover rate with provisional brokers (new brokers)? This is a great question because you want to know what the likelihood of you lasting in this real estate business. Are you going to be associated with a company that has a proven success rate with building a new agent's business?
10. On average, how long does it take most newbies to make a sale/purchase? (I know RE is what you make it...but I guess what I'm getting at is how long is it before I am able to start earning an income? Is it 45 days? 90 days? What does your firm aim for? Going back to the expenses associated with getting into this business, you have spent time, money and now you are going to have to wait to earn income. How long this takes you, is going to be extremely important to your ability to survive until that first paycheck and survive in this business.
Remember, you are interviewing this company as much as they are interviewing you. You must go beyond the surface and ask detailed questions. Know the company before you choose to affiliate with them. Don't just rely on what they tell you. Good luck!
Brandon L. Penny
bpenny@fmrealty.com
http://www.facebook.com/fonvillemoriseydurham
(919) 402-1201
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