March 23, 2024 • 15 mins
In Episode 1 of Real Estate Common Sense we start at the beginning.
This episode breaks down 10 questions every agent should ask their broker, and other common sense details that assist in launching a career in real estate.
Although this episode talks about one of the most basic assumptions, choosing a broker, it also discusses the importance of making an informed decision about where you will launch your real estate career.
Real estate coaching, mentoring and training are highlighted as the first essential decision an agent makes.
Did you like this episode? Is there something else you would like to learn about? Let us know here!
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:05):
Welcome to real estate commonsense.
I'm Lisa Spencer and I grew upin a real estate family.
I was a top producing agent anda managing broker with over 400
agents for over a decade.
What I discovered is commonsense is not that common.
Especially when it comes tolaunching building or expanding
(00:25):
a real estate business.
I have interviewed thousands ofagents and helped hundreds
launch, successful careers.
You'd likely hear from some ofthem in future episodes.
Today.
Let's begin with you.
Here in our first episode, we'llassume that, you know, 43,560
square feet is an acre and thatyou've passed your state
(00:46):
licensing exam.
The first thing you need to doin most states is select a
broker.
I did this completely wrongbecause I simply went to work
with my uncle who was themanager of a major brand that
distributed leads to the agents.
I didn't know this until yearslater, but he promised the other
(01:06):
agents in that office that hewould not give me any leads.
In the long run, it worked outwell for me, because it forced
me to find business for myself.
But a few leads in those earlydays would have been really
helpful.
So, what questions should youask when you interview your
potential broker?
Yes, you are interviewing them.
(01:29):
More really then they'reinterviewing you.
It's not the same as a jobinterview.
You're going to work under thesupervision of your managing
broker.
Take time to consider a fewthings.
Like what is the reputation ofthe company?
And what is the reputation withconsumers?
As well as the reputation withreal estate agents in the
(01:52):
community.
Do they have a national brandrecognition?
Or, are they an influentiallocal office that dominates the
market in your area?
Regardless of the requirementsof broker supervision.
Choosing a broker is one of themost important decisions we make
when launching our real estatecareer.
(02:14):
Unfortunately, many agentsjoined the brokerage of a friend
or a family member like I did orfall into a relationship with a
broker, just because thelicensing course was held at
that brokerage.
In my years of interviewingagents, their interviews usually
focused on splits.
They wanted to know how theirmoney that they earned was going
(02:36):
to be divided.
Space.
They wanted to know where theywere going to sit.
When they came to work andsoftware, they thought about how
is this technology going to helpme?
Although, these are importantconsiderations, the following
things had more influence on thesuccess of the agents, and many
of them never asked questionsabout these things.
(03:00):
Coaching.
How important is personal andprofessional growth to you?
If it's important.
Your broker should have somekind of coaching or mentoring
program.
Collaboration (03:10):
are the fellow agents in the office sharing
their best practices.
Are they in a spirit ofcollaboration, or competition
where everyone stays tothemselves and keeps their
secrets to themselves.
By the way, there are nosecrets.
We all know how to succeed inreal estate.
Culture is the office, a highenergy positive environment, and
(03:35):
then community.
Do you feel like you'll be ableto contribute to the community
and will you be able to benefitby the contributions of others?
This is really important.
Your relationship with yourbroker is your first
partnership.
It's an important relationship.
And one that should not beentered into lightly.
(03:56):
When I started, I took ashortcut because I went to work
with my favorite uncle, quitepossibly my favorite person on
earth.
So the most important factor oftrust was already built in.
Because we had that foundationof trust.
We worked through all the otherissues.
So take time to assess how thebroker made you feel on that
(04:18):
interview.
Trust your spidey senses.
Make the decision slowly andpurposely and change it quickly.
If it's the wrong fit.
The longer you're in thebusiness, the harder it is to
change brokerages.
So for practical purposes.
Here are 10 important questionsthat I feel will help you in
(04:39):
that selection process.
The first is, is there amentorship or training program?
So many offices talk about theirsuccess and yet, how are you
going to be able to ramp yourbusiness up and be as successful
the other agents in the office?
If no, one's there to help yousucceed.
(04:59):
It's going to be a lonely ride.
So that's the first and I feelmost important question.
The second are the agentsRealtors?.
It's an important distinction.
Remember, not all real estateagents are Realtors and being a
realtor means that you will payfor national, local, and board
(05:21):
dues that allow you to use thatdesignation.
So it's just important to knowif your office are Realtors are
not.
Third, what marketing collateralmight be provided by the office?
Are they going to provide awebsite signs, buyer and seller
presentations, business cards,open house signs or other
(05:43):
signage?
These can be a significant costif you're starting on your own.
Or they can be a huge value ifthey're provided by your broker.
What additional marketingsupport do they offer?
Does the broker advertise yourlistings?
If they do, who gets the leadsfrom that advertising?
Remember the listings belong tothe broker.
(06:05):
What is the understanding aboutleads generated from the
marketing of your listings?
It's very important tounderstand this going in.
Question number four.
What technology is used by thebrokerage.
At a minimum, there should be atechnology that includes an
e-signature platform anddocument storage.
But many brokerages go farbeyond that.
(06:28):
Is there a CRM, a customerrelationship management system.
Who will help you learn thesystems in the office and who
has access to the data?
Who will keep this data.
If you leave?
Question number five.
How will the broker assist withbuilding your business?
Are leads provided.
(06:48):
If so, how are they distributed?
Round Robin?
By performance?
Seniority?
If leads are not provided, howwill the brokerage assist you in
generating your own?
Question number six.
How is the compensationstructured?
This varies wildly and is mostlybased on the answer to the
(07:10):
previous question about leads.
The more, a brokerage assistsyou, the more of the commission
they will expect.
There are even 100% companiesout there.
Which leads us to why you needto ask the next question.
What fees are required by thebrokerage is question number
seven.
Is there a registration fee, amonthly fee, a technology fee.
(07:33):
Ask about the details.
Are there any other fees?
A brokerage that depends on feesto be profitable, does little to
nothing to support agents andbuilding their business.
You want to be affiliated with acompany that derives its profits
from their share of thecommission earned by their
agents.
That means if you don't makemoney, they don't make money.
(07:56):
And that will establish a vestedinterest in your success.
If it's a 100% company they'redepending on fees for
profitability.
Question number eight.
Does the broker compete?
This is not an easy yes or noquestion.
And, it's still important toask.
(08:17):
If the broker competes, it meansthat your broker may possibly be
going on an appointment with thesame potential seller that you
are.
Will you feel comfortable withthe broker having access to your
database?
Your comfort level with thiswill depend on how well you
trust your broker.
Question number nine.
What happens if you decide toleave?
(08:40):
Yes, it's awkward.
And we have to have thisconversation.
We, before we signed up with abroker.
In many states, again, alllistings belong to the broker.
Will the broker let you take thelisting with you when you leave?
Most brokers require you toclose any fully executed
(09:00):
contract with that brokerage.
But there may be a penalty ifyou leave before closing.
Will your contract be assignedto someone else to close, which
interferes with yourrelationship with your client
and may require you to pay ahefty referral fee.
I know it's awkward, and we haveto ask the question: what
(09:21):
happens when I leave?
What happens to the businessthat I have pending with your
office?
Question number 10.
You need to find out how muchthe broker loves real estate.
Ask them their favorite partabout the job.
Passion and enthusiasm go a longway in this business.
Ask about their favorite part ofthe job.
(09:41):
Is it helping other people grow?
That is the winning answer.
The most important thing toremember is this is a
partnership, your firstpartnership in real estate.
Which brings us to teams.
To team or not to team.
That is the question.
One of the most fascinatingdevelopments in real estate is
(10:02):
the team model.
Real estate has always beenlocally driven.
Realtors are connectors and theyare usually deeply entrenched in
the local community.
Top agents grow teams thatpermit them to leverage
functions that don't requirepeople connections.
Connecting with people is thehighest and best use of an
(10:24):
agent's time.
So the first thing an agent doesas their business grows is
outsource things like marketing,transaction management, and
appointment setting.
If you're interviewing with ateam that doesn't have those
things in place, I'd take apause the buyer's agent should
not be the first hire on a team.
But let's say they do have thosethings in place.
(10:46):
The buyer's agent model was bornfrom the concept that a top
listing agent will generate somany buyer leads from their
marketing that they can't handlethe volume.
When a newer agent joins a teamas a buyer's agent they are
given instant access to buyerleads this sounds like a no
brainer, right Well not so fast.
(11:08):
There isn't an easy answer aboutwhether you should join a team
or not (11:11):
However there are some important considerations.
Many agents get frustratedbecause they go through training
and they're ready to launchtheir career and they just are
getting a slower start than theythought they would.
Then they see the teamsdominating the monthly awards at
the office and they startthinking: How can i get on the
(11:32):
fast track to success?"Sometimes joining a team is
exactly the right thing to do;However when you join a team
remember that you're buildingthat business.
You're not just there to getleads you're there to contribute
to the overall success of Theteam And many many teams are a
(11:52):
great environment for growth.
So, sometimes agents will gothere and just join for a couple
of years, it's a great way toget mentoring and training.
It's very very important thoughto understand a couple of
things.
You're going to be operatingunder your brokerage split you
talked about that in yourinterview how is your money
going to be split with thebroker.
(12:14):
Then essentially when you're ona team the team is sending you a
referral fee for the work you'redoing so you'll also share that
referral fee with your brokerThis can mean that you'll end up
with as little as 10% of thetotal commission so how much are
you willing to dilute yourincome by joining a team?
(12:38):
Then remember simple math it'sbetter to keep 10% of something
than a hundred percent ofnothing! If by joining a team,
you'll work leads you otherwisewould not have had access to
this is a win.
Teams want to hire talent andyou want to be a part of a
vibrant and dynamic team.
(12:58):
But, don't let your ambitionemotion and energy make you rush
into a decision.
Sometimes, even when you bringyour own lead to the team, it is
still subject to the teamcompensation structure.
So make it very clear in writingwith your Rainmaker,or lead
agent, what the expectation isaround this.
(13:19):
Will the business that you bringinto the team as opposed to what
the team gives you be subject tothe same compensation model?
Every team is different andoffers unique value.
So as long as you make thingsvery very clear then it's
usually a recipe for success.
When I say very very clear Imean in writing! I am currently
(13:42):
on a team myself, it is led bymy daughter.
The trust circle usually doesn'tget any tighter than with a
mother and daughter and yet, Ialso want to let you know, that
the team led by my daughter andI have a written agreement
.Whenever you join a team aswell as whatever you do with
your broker It should beestablished in writing.
(14:07):
In this episode we've coveredactivities that you should
complete within the first weeksof receiving your license, Or if
you're listening to this beforeyou get your real estate license
you can start interviewingbrokers now and get a headstart
So it's time to put a bow onthis episode by sharing
resources that will give yousome structure to our future
conversations Our first fewepisodes we'll focus on the
(14:30):
basics and then we'll dive intoconversations with top agents
and learn how they're leveragingsome common sense principles to
grow their business The firstresource is a book real estate
common sense that you can orderon amazon.
And, our websiteRealEstateCommonSense.com, which
provides business buildingtools, buyer and seller
(14:50):
resources, and a calendar oflive events.
You can also find us on facebookand youtube where we publish
articles and post helpfulvideos.
We hope you've enjoyed thisepisode and you'll join us as we
share real estate common sensesupport for agents launching
building or expanding their realestate business Tune into our
(15:11):
next podcast about finding newbusiness I'm your host lisa
spencer sending love and wishingyou success
Welcome to real estate commonsense.
I'm Lisa Spencer and I grew upin a real estate family.
I was a top producing agent anda managing broker with over 400
agents for over a decade.
What I discovered is commonsense is not that common.
Especially when it comes tolaunching building or expanding
(00:25):
a real estate business.
I have interviewed thousands ofagents and helped hundreds
launch, successful careers.
You'd likely hear from some ofthem in future episodes.
Today.
Let's begin with you.
Here in our first episode, we'llassume that, you know, 43,560
square feet is an acre and thatyou've passed your state
(00:46):
licensing exam.
The first thing you need to doin most states is select a
broker.
I did this completely wrongbecause I simply went to work
with my uncle who was themanager of a major brand that
distributed leads to the agents.
I didn't know this until yearslater, but he promised the other
(01:06):
agents in that office that hewould not give me any leads.
In the long run, it worked outwell for me, because it forced
me to find business for myself.
But a few leads in those earlydays would have been really
helpful.
So, what questions should youask when you interview your
potential broker?
Yes, you are interviewing them.
(01:29):
More really then they'reinterviewing you.
It's not the same as a jobinterview.
You're going to work under thesupervision of your managing
broker.
Take time to consider a fewthings.
Like what is the reputation ofthe company?
And what is the reputation withconsumers?
As well as the reputation withreal estate agents in the
(01:52):
community.
Do they have a national brandrecognition?
Or, are they an influentiallocal office that dominates the
market in your area?
Regardless of the requirementsof broker supervision.
Choosing a broker is one of themost important decisions we make
when launching our real estatecareer.
(02:14):
Unfortunately, many agentsjoined the brokerage of a friend
or a family member like I did orfall into a relationship with a
broker, just because thelicensing course was held at
that brokerage.
In my years of interviewingagents, their interviews usually
focused on splits.
They wanted to know how theirmoney that they earned was going
(02:36):
to be divided.
Space.
They wanted to know where theywere going to sit.
When they came to work andsoftware, they thought about how
is this technology going to helpme?
Although, these are importantconsiderations, the following
things had more influence on thesuccess of the agents, and many
of them never asked questionsabout these things.
(03:00):
Coaching.
How important is personal andprofessional growth to you?
If it's important.
Your broker should have somekind of coaching or mentoring
program.
Collaboration (03:10):
are the fellow agents in the office sharing
their best practices.
Are they in a spirit ofcollaboration, or competition
where everyone stays tothemselves and keeps their
secrets to themselves.
By the way, there are nosecrets.
We all know how to succeed inreal estate.
Culture is the office, a highenergy positive environment, and
(03:35):
then community.
Do you feel like you'll be ableto contribute to the community
and will you be able to benefitby the contributions of others?
This is really important.
Your relationship with yourbroker is your first
partnership.
It's an important relationship.
And one that should not beentered into lightly.
(03:56):
When I started, I took ashortcut because I went to work
with my favorite uncle, quitepossibly my favorite person on
earth.
So the most important factor oftrust was already built in.
Because we had that foundationof trust.
We worked through all the otherissues.
So take time to assess how thebroker made you feel on that
(04:18):
interview.
Trust your spidey senses.
Make the decision slowly andpurposely and change it quickly.
If it's the wrong fit.
The longer you're in thebusiness, the harder it is to
change brokerages.
So for practical purposes.
Here are 10 important questionsthat I feel will help you in
(04:39):
that selection process.
The first is, is there amentorship or training program?
So many offices talk about theirsuccess and yet, how are you
going to be able to ramp yourbusiness up and be as successful
the other agents in the office?
If no, one's there to help yousucceed.
(04:59):
It's going to be a lonely ride.
So that's the first and I feelmost important question.
The second are the agentsRealtors?.
It's an important distinction.
Remember, not all real estateagents are Realtors and being a
realtor means that you will payfor national, local, and board
(05:21):
dues that allow you to use thatdesignation.
So it's just important to knowif your office are Realtors are
not.
Third, what marketing collateralmight be provided by the office?
Are they going to provide awebsite signs, buyer and seller
presentations, business cards,open house signs or other
(05:43):
signage?
These can be a significant costif you're starting on your own.
Or they can be a huge value ifthey're provided by your broker.
What additional marketingsupport do they offer?
Does the broker advertise yourlistings?
If they do, who gets the leadsfrom that advertising?
Remember the listings belong tothe broker.
(06:05):
What is the understanding aboutleads generated from the
marketing of your listings?
It's very important tounderstand this going in.
Question number four.
What technology is used by thebrokerage.
At a minimum, there should be atechnology that includes an
e-signature platform anddocument storage.
But many brokerages go farbeyond that.
(06:28):
Is there a CRM, a customerrelationship management system.
Who will help you learn thesystems in the office and who
has access to the data?
Who will keep this data.
If you leave?
Question number five.
How will the broker assist withbuilding your business?
Are leads provided.
(06:48):
If so, how are they distributed?
Round Robin?
By performance?
Seniority?
If leads are not provided, howwill the brokerage assist you in
generating your own?
Question number six.
How is the compensationstructured?
This varies wildly and is mostlybased on the answer to the
(07:10):
previous question about leads.
The more, a brokerage assistsyou, the more of the commission
they will expect.
There are even 100% companiesout there.
Which leads us to why you needto ask the next question.
What fees are required by thebrokerage is question number
seven.
Is there a registration fee, amonthly fee, a technology fee.
(07:33):
Ask about the details.
Are there any other fees?
A brokerage that depends on feesto be profitable, does little to
nothing to support agents andbuilding their business.
You want to be affiliated with acompany that derives its profits
from their share of thecommission earned by their
agents.
That means if you don't makemoney, they don't make money.
(07:56):
And that will establish a vestedinterest in your success.
If it's a 100% company they'redepending on fees for
profitability.
Question number eight.
Does the broker compete?
This is not an easy yes or noquestion.
And, it's still important toask.
(08:17):
If the broker competes, it meansthat your broker may possibly be
going on an appointment with thesame potential seller that you
are.
Will you feel comfortable withthe broker having access to your
database?
Your comfort level with thiswill depend on how well you
trust your broker.
Question number nine.
What happens if you decide toleave?
(08:40):
Yes, it's awkward.
And we have to have thisconversation.
We, before we signed up with abroker.
In many states, again, alllistings belong to the broker.
Will the broker let you take thelisting with you when you leave?
Most brokers require you toclose any fully executed
(09:00):
contract with that brokerage.
But there may be a penalty ifyou leave before closing.
Will your contract be assignedto someone else to close, which
interferes with yourrelationship with your client
and may require you to pay ahefty referral fee.
I know it's awkward, and we haveto ask the question: what
(09:21):
happens when I leave?
What happens to the businessthat I have pending with your
office?
Question number 10.
You need to find out how muchthe broker loves real estate.
Ask them their favorite partabout the job.
Passion and enthusiasm go a longway in this business.
Ask about their favorite part ofthe job.
(09:41):
Is it helping other people grow?
That is the winning answer.
The most important thing toremember is this is a
partnership, your firstpartnership in real estate.
Which brings us to teams.
To team or not to team.
That is the question.
One of the most fascinatingdevelopments in real estate is
(10:02):
the team model.
Real estate has always beenlocally driven.
Realtors are connectors and theyare usually deeply entrenched in
the local community.
Top agents grow teams thatpermit them to leverage
functions that don't requirepeople connections.
Connecting with people is thehighest and best use of an
(10:24):
agent's time.
So the first thing an agent doesas their business grows is
outsource things like marketing,transaction management, and
appointment setting.
If you're interviewing with ateam that doesn't have those
things in place, I'd take apause the buyer's agent should
not be the first hire on a team.
But let's say they do have thosethings in place.
(10:46):
The buyer's agent model was bornfrom the concept that a top
listing agent will generate somany buyer leads from their
marketing that they can't handlethe volume.
When a newer agent joins a teamas a buyer's agent they are
given instant access to buyerleads this sounds like a no
brainer, right Well not so fast.
(11:08):
There isn't an easy answer aboutwhether you should join a team
or not (11:11):
However there are some important considerations.
Many agents get frustratedbecause they go through training
and they're ready to launchtheir career and they just are
getting a slower start than theythought they would.
Then they see the teamsdominating the monthly awards at
the office and they startthinking: How can i get on the
(11:32):
fast track to success?"Sometimes joining a team is
exactly the right thing to do;However when you join a team
remember that you're buildingthat business.
You're not just there to getleads you're there to contribute
to the overall success of Theteam And many many teams are a
(11:52):
great environment for growth.
So, sometimes agents will gothere and just join for a couple
of years, it's a great way toget mentoring and training.
It's very very important thoughto understand a couple of
things.
You're going to be operatingunder your brokerage split you
talked about that in yourinterview how is your money
going to be split with thebroker.
(12:14):
Then essentially when you're ona team the team is sending you a
referral fee for the work you'redoing so you'll also share that
referral fee with your brokerThis can mean that you'll end up
with as little as 10% of thetotal commission so how much are
you willing to dilute yourincome by joining a team?
(12:38):
Then remember simple math it'sbetter to keep 10% of something
than a hundred percent ofnothing! If by joining a team,
you'll work leads you otherwisewould not have had access to
this is a win.
Teams want to hire talent andyou want to be a part of a
vibrant and dynamic team.
(12:58):
But, don't let your ambitionemotion and energy make you rush
into a decision.
Sometimes, even when you bringyour own lead to the team, it is
still subject to the teamcompensation structure.
So make it very clear in writingwith your Rainmaker,or lead
agent, what the expectation isaround this.
(13:19):
Will the business that you bringinto the team as opposed to what
the team gives you be subject tothe same compensation model?
Every team is different andoffers unique value.
So as long as you make thingsvery very clear then it's
usually a recipe for success.
When I say very very clear Imean in writing! I am currently
(13:42):
on a team myself, it is led bymy daughter.
The trust circle usually doesn'tget any tighter than with a
mother and daughter and yet, Ialso want to let you know, that
the team led by my daughter andI have a written agreement
.Whenever you join a team aswell as whatever you do with
your broker It should beestablished in writing.
(14:07):
In this episode we've coveredactivities that you should
complete within the first weeksof receiving your license, Or if
you're listening to this beforeyou get your real estate license
you can start interviewingbrokers now and get a headstart
So it's time to put a bow onthis episode by sharing
resources that will give yousome structure to our future
conversations Our first fewepisodes we'll focus on the
(14:30):
basics and then we'll dive intoconversations with top agents
and learn how they're leveragingsome common sense principles to
grow their business The firstresource is a book real estate
common sense that you can orderon amazon.
And, our websiteRealEstateCommonSense.com, which
provides business buildingtools, buyer and seller
(14:50):
resources, and a calendar oflive events.
You can also find us on facebookand youtube where we publish
articles and post helpfulvideos.
We hope you've enjoyed thisepisode and you'll join us as we
share real estate common sensesupport for agents launching
building or expanding their realestate business Tune into our
(15:11):
next podcast about finding newbusiness I'm your host lisa
spencer sending love and wishingyou success
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