8 “Q & A”s Before Meeting a R.E. RecruiterDaniel Dobbs2023-05-25T12:18:06-07:00
The market is slow, and the holidays will make it slower. Many sellers take their homes off the market, and those who missed the “bidding wars’ of early 2022 will begin to review their plans.
If you’re making a broker change, this is the time of year for your new plans.
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A slowdown makes your job change easier, whether you have clients with contracts expiring or buyers just beginning a search process. It’s cleaner!
With less of a pipeline, you’re less vulnerable to unethical corporate lackeys who may try to screw you out of commissions as you go out the door.
Often salespeople (“going out the door”) are “nickeled and dimed”; while losing client relationships, and this adds up to tens of thousands of dollars lost over an agent’s career.
Once you know you’re making a change, you need to (quietly) begin seeking out recruiters.
FYI: In fairness, I believe real estate recruiters are more ethical than big banks/national lenders. The Great Recession is proof of banking ethics.
“Don’t Bother Kissing Frogs”
The most crucial step is to check potential brokerages online and their DRE licenses before making yourself available to chat with anyone. There’s too much $$ on the line to be sloppy’. Only then start “chatting up colleagues” for their two cents.
“Loose Lips Sink Careers”
Remember you are applying for a commission-only job; it’s unlikely any recruiter will decline to interview you.
Don’t bother getting all dressed up to visit their office just so the recruiter can do their version of the dog and pony show….or you may meet someone you know at the rendezvous. Cover Blown!
Take control. Now! On the phone. On Zoom.
Don’t invest one moment of your valuable time listening to the recruiter “selling you” while visiting them at their office. There’s time for that later!
Keep pleasantries to a minimum and avoid giving anyone unnecessary personal info; in this era of online information, they already have the basics.
This is all about you-time for teamwork is later.
Load up on pre-interview questions (below) BEFORE you bother with an “in-person” interview. Your time is your money. So hold the recruiter’s feet to the fire from Day 1.
Once you have control of the interview, you move on to the contract writing and the hiring process! Or go elsewhere.
FYI: The following questions and links; draw heavily from an Inman post from 2019 but are updated by me to a post-Covid business and tech model.
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Ask 8 “Pre-Interview” Questions
Before Meeting with Recruiters
Real estate sales has been through a lot of changes since Jan. 2020. With the market slowing, many agents are taking a hard look at all brokerage models.
Brokerages are not one-size-fits-all, so before exiting your current position think it through. Ensure the company has a culture and philosophy that aligns with your vision by asking these eight essential questions.
Let the Questions, Begin
1. Does your brokerage offer agent support, and if so, to what extent?
The amount of support an agent receives will be one of the most significant differences in brokerages and brands. Some are geared more toward the self-sufficient agent, while others will do everything for you.
If you want an admin person to enter listings into the MLS, and prepare e-blasts, postcards, and other marketing materials, choose a brokerage that provides that type of support. In general, the more support a brokerage offers, the higher the broker fees are.
2. What does the broker do to retain their current agents?
When a broker focuses more on recruiting vs retention, it’s a red flag.
Good brokerages will spend as much time on the retention of good agents as they do on recruiting. The broker should have a clear answer regarding incentive programs geared toward agent retention.
3. Does the broker require agents to come into the office to work?
Working from home or at the office is vital to many agents. If you work better around others than you do in a home office alone, then desk space and a busy office are essential for your success.
Some offices are quiet, while others are full of energy. Pay attention to the vibe, and choose a brokerage that fits your work style best.
4. What is the broker doing to incorporate mentoring, and new tech into a real estate brokerage model?
Post-Covid, old-school brokerages that rely entirely on an agents’ “shoe leather marketing methods” such as door-knocking and calling FSBOs are “fading” fast as many are ripe for assimiliation”
Note: Who, in today’s world, wants to door knock and who wants to open doors to strangers? With or without a masks!!
Brokerages which encourage video, with mentoring, and social media, will lead to higher earnings and a larger agent profile in their chosen community
5. Does the brokerage encourage teams?
The trend in real estate is moving more toward teams and less toward individual agents.
However, brokerages embrace teams differently. Some look at them as a group of agents that share commissions and responsibilities based on their separate agreements with the brokerage.
Others allow the team leader to set commission and all other requirements for their team members. In this case, the brokerage pays the team (usually a business entity), and the team pays the team members.
As a new agent, being part of a team gives a sense of belonging, and though commissions might be less, you make up for it in volume.
If you are thinking about being part of a team, interview multiple teams before deciding which one to join
6. What fees do you charge agents, and which ones are optional?
Some brokerages have high monthly fees, and others have no fees at all. Ask about mandatory fees, what they cover, and what fees and offerings are optional.
If you don’t need a desk, you don’t want to pay for one. You’ll want a brokerage that, at minimum, that offers a website, lead capture, and customer relationship management (CRM).
7. What are your commission tiers, and is there a cap?
Too many agents get wrapped up in their commission split. If you’re not selling, your split doesn’t matter, so choose a brokerage that fits your needs first, and then consider commissions.
Companies that have a cap will give you a 100% commission once you meet your annual cap. Other companies will increase the commission as you meet specific sales levels.
Your commission will not reset at these companies every year, but it may decrease if your annual volume falls below your previous year’s volume.
8. What are the franchise fees?
If you choose a brokerage with franchise fees, you will always give a portion of your gross commission toward these fees. The more you make, the more you’ll give. Franchise fees are usually up to 8% of your gross commission. And that can add up over time.
