So you want to be a Realtor.....
First, some hard and cold facts. Most real estate agents FAIL. Most are out of the business within two years. It has been cited that 90% of all new agents stop being actual agents before two years after their license was issued. Three out of four agents earn less than $30,000 per year, says the NAR's latest member survey. Working nights, working weekends, no automatic paycheck--why would anyone in their right mind want to do this job?
Because, for some of us, it isn't a job--it is a passion. Being your own boss, your income tied to how hard you work, helping people find realize their dreams of owning a great home and finding their future--THAT'S why so many of us love real estate!
So, how do you become successful? Here are a few hints for you.
TRAINING
There is no reason to reinvent the wheel when it comes to real estate. There have been thousands of agents before you, and many of them have shared their knowledge through classes, training, magazines, and books. If you have any questions which are best, ask the best realtor you know, and they'll probably be happy to answer your questions.
BE PREPARED
The classic phrase about real estate agents is "Chicken for dinner one night, feathers the next!". This means that paychecks may be very sporadic, and at first may take a while to start coming in. Taking the real estate exam, getting licensed, and joining your local Multiple Listing Service takes money. Most brokers will tell you that you should have enough funds stashed away to plan on six months without a paycheck. It also takes money for the original setup of signs, business cards, etc--all these things have to be factored in.
TIME MANAGEMENT
Treat it like a BUSINESS--not as a flexible hour opportunity to play. Yes, you can structure your own schedule, but be sure it is just that--STRUCTURED. I've seen too many agents who think they can hang out at Starbucks with friends, and the clients will just come to them. It is fun and rewarding work, but it is just that--WORK. If you're your own boss and out playing when you should be working, how can you fire yourself?
THE RIGHT COMPANY TO KEEP
Becoming part of the great team and real estate company is absolutely KEY. Surrounding yourself with a great, reputable team of people, who share their knowledge and who want you to succeed, will make an enormous difference in your happiness, and in your paycheck. In many companies, you can join an existing team of realtors, or find a mentor who has the same interests that you do. Some companies encourage newcomers wonderfully, and some will just point you at a desk (for which you pay a big fat fee every month) and tell you "good luck". Some encourage agents to help each other, sharing knowledge and ideas, and others are so competitive the agents always look over their shoulder, instead of putting out a hand to help. I'll bet you can tell which one I'd recommend!
I chose the company I'm in because of the training, but mainly because of the people, and how they respect and encourage each other, almost like a family. Keller Williams has
profit sharing. If one agent succeeds, they all do!
amazing training, at the local, regional and national level--most of it FREE!
financial rewards for recruiting other good agents, (which can continue past your retirement)
a cap on the expenses the agent pays during a year
and a local council of top agent who act as a Board of Directors, helping to make the decisions.
Email me if you'd like more information on Keller Williams and how they help new agents succeed. I'll be happy to give you the honest scoop, no spam and no strings attached.
No matter which company you decide on, be sure to interview with more than one, and consider asking them these questions:
1. What is your company “value” statement?
2. Who makes decisions on a local, regional and/or national level within your company will affect how your firm is run?
3. What is your company “mission” statement?
4. Do you have a leadership group of selling and listing agents within the company that work together with ownership/management to make decisions on how the company operates?
5. What is your company “vision” statement?
6. What amount will I pay annually to your company from my sales?
7. Is there a “cap” on that annual fee?
8. What is your company “belief” system?
9. What would my “split” be at your company?
10. Does your company charge franchise fees?
11. If you charge franchise fees is there a “cap” on those fees?
12. If there is a “cap” in the annual fee I pay to the company but I do not make the necessary sales to pay the entire “cap”, is the remainder forgiven on my anniversary date?
13. Does your company offer a “true” 100% commission plan or am I always going to be paying some amount to the company?
14. Can I advertise my own direct phone number on all of my “for sale” signs, flyers, internet sites, home books & newspaper ads & business cards without including the main office number?
15. Can anyone in your office ever take a call on one of my advertisements, flyers, internet sites, “for sale” signs etc. or do you have a policy in place that guarantees all calls come directly to me?
16. What type of “structured” training does your company offer for:
- New Agents?
- Experienced Agents?
- Mega/Top Agents?
17. How often is your training available? May I see a training schedule?
18. What is the cost of your training?
19. Where do I go for the training?
20. Who is responsible for developing your training curriculum?
21. Is your company “Open Book”? Do you allow your associates to see the financial statements from the company?
22. What types of tools, systems, training, education and business models has your company developed to assist your agents in making not only their first sale but in achieving whatever level of success the agent desires?
23. Does the broker and/or manager of your office compete for listings and/or sales?
24. Would I be considered a “partner” or “stakeholder” within your company?
25. Do you have a system in place that rewards me for helping increase the profitability of the company? Tell me in detail how that system works?
26. How does your company view “team building”?
27. Would your company encourage me and train me on how to add administrative as well as sales assistants to my “team”?
28. Would there be additional fees for my assistants?
29. Does your company have a relocation department?
30. Does your relocation department “capture” leads and then “sell” those leads back to your agents?
31. Does all relocation or other referrals go directly “agent to agent” for a more “typical” 20-25% referral fee?
32. If I choose your company but for some reason things do not work out and I want to move to another competing company what does your independent contractor agreement say in writing regarding my listings and/or sales?
33. Would my listings belong to me and my new company or would they remain with your company?
34. If I did move to another company what about any “pending” sales I have, would I be paid on my normal “split” or would my “split” change on those sales?
35. Will you show me the section of your independent contractor agreement that covers this issue?
36. Does your company offer “floor time”? If yes, why? If no, why?
37. Does your company do local, regional and/or national advertising? If yes, why? If no, why?
38. Are all agents in your company treated equally with the same potential for earnings?
39. Are there agents in your company that pay annual fees to ownership/management more than others do?
40. Do some agents in your company have better “deals” than others? How would I know for sure?
41. Does your company have a charitable foundation set up to contribute to community needs? National needs? Needs of agents in your local office?
42. Does your company have an annual “convention”? If yes, what percent of the agents attend each year?
43. If you offer a 100% commission plan, do I pay a monthly fee to get to 100% or do I pay only as I make sales?
44. Does your company offer internal “intranet” sites for your agents to use?
45. Would I get my own personal website? What is the cost?
46. What fees does your company charge for each transaction?
47. Does the company supply me with business cards?
48. Do I pay for long distance telephone?
49. Do I pay for photo copies? How much?
50. How many offices do you have? Are they individually owned & operated?
51. How many respected, top agents have left other companies and joined your company in the last 12 months? May I have their names and numbers so I could call them to discuss why they chose your company?
52. What is your company policy on hiring new agents? Are there requirements? Are new agents held accountable to make sales and contribute to the office culture? Are new agents automatically hired if they want to be a part of your company?
53. What is your policy for hiring agents from other companies? Does your company have a system in place to determine if this agent would be a good fit for your company?
54. What is the "culture" of your company? How do you maintain the culture?
55. If I join your company and years down the road I retire, how much money will your company potentially pay me each month even after I make my last sale?
If the Real Estate Company you are interviewing falls short, can’t substantiate, or hedges in any way, you’re interviewing the wrong Real Estate Company!
Make sure the Broker/Owner/Manager can back up any and all statements. Take a “show me” attitude! Yes, it is a big list, but don’t be shy; this could be the most important business decision of your life.
Whatever you choose, I wish you all good fortune and happy customers! 