After completing your pre-licensing courses, passing the TREC real estate exam, and earning your Texas real estate license, you’ll be eager to launch your career. However, a crucial step before you start is choosing the right real estate brokerage to affiliate with. In your first year, your broker will be an invaluable guide through questions and concerns, and help you get your name out there.
While many new agents prioritize commission splits, this isn’t always the best approach, especially when you’re new to the industry. It’s highly recommended that you research and meet with at least three different brokerages. Once you’ve identified the most appealing options, schedule meetings and ask the following 20 questions.
(While you are researching different real estate brokers, be sure to check out what eXp Realty, the innovative cloud-based brokerage voted “Top Places to Work” by its agents, has to offer! eXp Realty operates on a cloud-based model, offering agents a competitive commission split, a commission cap, and opportunities for stock awards and revenue share. They typically start agents on an 80/20 split until the agent pays $16,000 to the company, at which point they go to 100% commission for the remainder of their anniversary year, minus transaction fees. There are also monthly cloud brokerage fees and transaction-based E&O fees. New agents generally go through a mentor program for their first few transactions, which involves a slightly different commission split for those deals.)
Ask These 20 Questions When Choosing a Real Estate Broker
FINANCIAL
- What are your commission splits? (e.g., does the broker get 40% and you take 60% of the commission earned)
- Are there any franchise fees? (Many large brokerages charge an additional 3% to 8% “franchise fee” on top of the commission split.)
- Do you offer a commission cap? (A commission cap is the maximum amount the brokerage will keep annually. For example, if the cap is $20,000, and you generate $200,000 in gross commission, you would net $180,000. Without a cap and a 60/40 split, you’d net $120,000.)
- Are there any other brokerage-related fees? Common ones include:
- Monthly office fee
- Monthly MLS fee
- Errors and Omissions Insurance (E&O)
- Education fee (often for new licensee courses)
- Start-up fee
- Desk fees
- What other expenses might I be responsible for? Examples include:
- Lockboxes
- eKey (for accessing property lockboxes)
- Signage
- Business cards
- REALTOR designation (usually $400+ per year)
- Website hosting and IDX (MLS feed)
BROKER BENEFITS & OFFERINGS
- Do you offer any of the following:
- Business Cards
- Signage
- Lockboxes
- Stand-alone website or page on broker’s website (a stand-alone is a big plus)
- Are homebuyer or home seller leads provided? If so, ask:
- How are they distributed among agents?
- Is there a referral fee or upfront charge?
- How many leads can I expect each week or month?
- Are the leads website registrations or actual inquiries about specific properties?
- What is the typical conversion rate on your leads (what percentage result in a sale)?
- Closing Coordinator
- Technology support team
- Continuing education classes (for CE credits)
- eSignature tools – DocuSign, DotLoop, etc.
- Paid At Closing option
- Customer Relationship Management (CRM) system
- Discounts with local vendors
- Marketing resources (get details about what’s available)
- Meeting space (to meet with clients)
- Clerical or administrative support
EDUCATION & SUPPORT
- What type of classes do you offer and how often? Also, ask if there’s a cost. Many brokers offer classes, but some are taught by agents (your competitors). Quality classes taught by the brokerage may cost between $200 – $1,000 per class.
- Are the classes all in person or do you offer online courses (that you can view at your convenience)?
- Who can I contact if I have questions about a contract? Are they available after 5 pm for urgent issues?
- Do you have a mentor program? If so, how does it work? Typically, mentor programs last for your first 3 to 6 months or first few transactions, and you may share a percentage of your commission with your mentor for their guidance.
BROKERAGE ENVIRONMENT & EXPECTATIONS
- How many real estate agents are in the office?
- How often do you have team meetings, happy hours, lunch & learn sessions, etc.?
- Are there any meetings that are mandatory attendance?
- What do you do to help promote our listings, the office, and the agents?
- Is a desk or phone duty required for each agent? If so, how many hours a week?
- How are you involved with the surrounding communities?
- What are your expectations for me? Is there anything else I’m required to do as an agent under your brokerage? (e.g., selling a certain number of homes, being a full-time agent, attending specific meetings).
COMPANY CULTURE
- Can you describe the atmosphere of the office?
- Would it be possible to get a tour of the brokerage and meet some of the agents and staff?
- Can I have the phone numbers of 3 to 5 agents who work in the office? (Having a private discussion with other agents is always beneficial!)
BONUS: Can I sit in on an upcoming training session or team meeting?
In Summary
While the atmosphere and company culture of a real estate brokerage can be intangible, it is critical to gather as much information as possible beforehand. As a real estate agent, you will often work independently, but a supportive environment is essential for addressing issues and taking your business to the next level. Choosing the right real estate broker can significantly impact your success and happiness.
(Editor’s note: This article was created by Kerry Lucasse, Founder of Building Better Agents and Realtor at eXp Realty. Information deemed reliable but is subject to change.)
About Building Better Agents:
Building Better Agents is dedicated to helping agents build successful real estate careers by developing a plan, building a database, and working smarter to uncover the keys to success without relying on cold calling, door knocking, or chasing expired listings. Kerry Lucasse and Kary Perry are proud agents with eXp Realty.