Careers in Real Estate
Choosing the right career and company in any type of industry is not something you do every day. I hope these tools will help you make a more educated decision on the company that will best suit your needs. My goal is to:
1) Help you lay the groundwork for how to go into an interview situation with the right frame of reference;
2) Point out some of the most common mistakes new licensees often make so they can be avoided;
3) Provide you with the most critical questions that you need answers to during your interview;
4) Give you keys that allow you to compare brokerage companies on an “apples to apples” basis.
Using this tool puts you miles ahead of the usual new interviewee a broker sees in their office. Ask lots of questions to get all of the information that you need to make an informed decision. Even if you’re not hired, they will be impressed!
#1
Interview Several Companies
Make no mistake; picking your broker has a lot to do with your eventual success in the real estate industry. A very high percentage of new real estate agents often go to work for a broker that was recommended to them by a friend. Sometimes this is fine; sometimes it’s a disaster. The key is to talk with at least three brokers in your area so you can gather enough data to feel comfortable comparing your notes. One of those three will likely be a good fit and you’ll know it when you complete the interview process.
# 2
Companies Are Not The Same
As is true in almost any industry, most brokerage companies tend to fall into three distinct categories: 1) Young growing companies 2) Mature larger operations and 3) Older companies with owners looking to sell or retire. These companies can either be independent operations or belong with a franchise affiliation. Other than the fact that most real estate organizations belong to the local Board of Realtors, the differences in how those companies operate can be as varied as snowflakes. In addition, younger companies may be more aggressive and take risks, where a more mature operation is more apt to stay with “what we’ve always done.” The key is to recognize what type of company you’re talking to. If you go in understanding that there can be marked differences in how you, as an agent, are treated by the organization, you’ll be able to identify just what type company you’d fit in with.
#3
Start With Enough Financial Capacity
If the company you’re talking to has an economic program based solely on commissions collected by you, you’ll need a financial cushion to get started. It is a very difficult task to get into real estate on a shoestring. Most agents today would say that the average amount of time one can expect to go without that first commission check is five to six months. Yes, it is possible to do that faster, and no doubt brokers can tell you stories about their fastest “rookie” agents doing it in three months, but the reality is that there is a lot to learn, and invariably, the new challenges need 100% of your focus without the added concern about where money is coming from.
#4
Understand Who’s Doing the Interviewing
Believe it or not, you are. Most agents think they are being interviewed, but the reality is that it is you who should be in the hiring position. Think of it this way; you’re about to hire this broker as your trainer and consultant for the next few years and pay them “X” amount every year for that privilege. Are they worth what they want you to pay them? By asking questions, you’ll be doing the interviewing and it will be a snap to show the brokers you’re quite serious about this decision. Most importantly, the answers you get help to make a straight “apples to apples” comparison.
#5
Ask Them To Verify Their Statements
Whenever a broker makes a statement that can be backed up with data, you need to ask for that. For example: they expound on their new agent training program, and you ask to see a copy of the material. They say they have 48% market penetration, you ask to see the report. They say they have a mission statement, you ask where it is posted. In other words, almost everything a broker talks about can be visually witnessed, if indeed it exists. If they say they have a training calendar, you should see it. One of the greatest follow-up tools you can use in this regard is to ask to see a copy of their roster. Then write down three agents’ names at random, and make a point of calling them that night to ask them some of the same questions you felt might need re-visiting and to gain an overall feel for the office. This will be a very enlightening conversation. You now find out if they not only talk the talk, but also walk the walk. As we say, “the proof is in the pudding.”
# 6
Realize How Critical Training and Accountability Are
If you are a new agent to real estate, the ability of the broker to get you trained and then offer career accountability are critical indeed! Pre-licensing courses can vary tremendously in what they teach new agents. Many of those courses are, by their very nature, geared to help you with a licensing exam, so their value in the real world may not be that high. New agents have needs that create special training in at least four core areas: 1) financing, 2) contracts, 3) working with buyers, and 4) working with sellers. That is the least that you should expect in any new agent course. Look at who teaches it and how the course is structured. Having the ability to work in the field is helpful while you’re training. If the company uses a “mentor,” be very careful that the mentors are of the quality you’d want to learn from, and that the system is highly structured. The most critical step for new agents is what happens after the training is over. Is there a type of “career start” program geared to get you on the right track with what you are supposed to do? This is the hidden weakness of many companies that have programs for new people: their lack of follow-up systems!
# 7
Identify the Leadership
Perhaps the most misunderstood ingredient in a successful career is the impact of having a strong management team and agents that think like partners in the organization. If you truly have leaders running the company, they will inspire a high level of learning and accountability. Look at the most innovative and profitable companies in any city, and you’ll find a learning-based environment where everyone is constantly the “master” student. Strong leadership has a habit of creating a strong “culture.” When you ask experienced agents why they are with their company, their answers tend to be the “I like the people I’m working with” variety. It means that they like the atmosphere and the culture that the leaders in that office have created. Top agents gravitate to this type of atmosphere, and smart new agents sense that they want to be around these types of winners.
# 8
Realize Who Actually Drives the Industry
At the heart of all real estate transactions, there was an agent who developed a relationship with a customer. Real estate is a very local business. A recent study by the National Association of Realtors indicated that buyers and sellers are actually more apt to choose an agent, not a company. There is a revolution now occurring in the industry, and many brokers are becoming wise to the fact that, indeed, they don’t actually control the customers, their associates do. So the goal for you, the potential associate, is to find a broker who believes that you are the central reason that the firm is successful.
As you gather the answers to the questions in your interview packet, which type of company you’re visiting with will become “loud and clear.” The choice will be easier to make, and you should be well prepared to meet the challenges and opportunities in one of the last great bastions of capitalism! I wish you the best in making the right choice!
