You Just Got Your Real Estate License. Now What?

GETTING STARTED IN REAL ESTATE

Choosing a Brokerage and other first steps

Congratulations. After months of studying, prepping, and cramming you passed the test and now have your Real Estate license.

You are now faced with a set of decisions that may very well define whether you will be successful or not. First and foremost among those are where to hang your license, which Brokerage to join. And unfortunately, the nature of the business is such that this will not be the only time that you go brokerage shopping. But at a later period in your career you will have different needs and requirements.

(This discussion assumes that you are not planning on being an independent Broker which I very highly discourage if you are new in the business.)

So, how do you choose which brokerage to join?

When you are starting out, the worst way to make this decision is based on what the “split”, i.e. commission split is. Keeping 100% of nothing is still zero. You need to be in a situation where you can succeed.

One of the things you might discover as you go brokerage shopping is that many firms won’t hire you if you have no experience. You will also find out that those brokerages that will take on new licensees may require up to a 50% split on your first 2-3 deals.

Another option is to join a top team working at a brokerage. I highly recommend joining a top producing team if you can find one to take you on no matter how much commission you have to give up. What I would not recommend is teaming up or partnering with someone else new in the business or someone who isn’t already successful.

Just as Sellers typically interview 3 agents before they list their home for sale, I recommend that you carefully consider and interview with 3 firms. Before you whittle it down to which 3 you’ll need to do some homework.

For most agents, I highly recommend that you work and align with an office in the area where you live and / or intend to work. I know agents who don’t live near where they work but it is more of an exception than the rule. Sometimes that happens because people become established somewhere and then they move out of the area.

Let me say this, there is nothing more powerful to say to a Buyer or Seller looking in your neighborhood something to the effect of “I live here”. Not complicated and anyone can say it. For your Buyer clients it validates their search choice. For most Sellers you might want to also add “and I have a vested interest in your home selling for the highest price possible because it is a comp for my home.”

And let’s face it, you most likely know more about the local amenities, commute, schools and everything else where you live than somewhere else.

What you should look for are Brokerages that have a strong sales presence where you live even if their physical office is not there. If you can check both boxes, even better.

So back to choosing a Brokerage. Here’s something you may not know. Many firms offer compensation to their agents for recruiting other agents. So they will tell you where they are working is great, amazing, and anything else to get you on board. As for managers you might interview with, same deal even if their firm does not offer money to their agents to recruit you. Surprised? Don’t be.

Here’s an idea.

Go to open houses in the area and the price range you really think you will be working in. Speak with the agents at the Open Houses. Some may not want to talk to you once they find out you are not a Buyer. That should tell you something. Other agents you meet may not be the listing agent but be a newer agent or a team member holding that house open (hint, that could be you). Look at their marketing material and how they present themselves and the OH. That will tell you a lot about the Brokerage and their culture. (*During Covid there currently are no OHs.)

You can take the same idea and expand it to asking any mortgage lenders, escrow companies, or anyone else who interacts with brokerages their opinion. And take it all with a grain of salt.

When you do decide the 3 Brokerages that most interest you, you have one question and one question only:

“What do you do to help new agents get started?'“

They are all going to tell you that they have a great training program and the best tools and support and lots of other stuff which just isn’t true.

So when they tell you about the great training, ask to see an example and more important to speak to someone who joined them in the last 3 years, was a new licensee, and became successful. Most won’t have a name to give you.

When I started, I joined the big name brokerage in my area, Shorewood Realtors, a great firm that is no longer in business (totally different story) and went through their training. The training was marginally helpful. What was very helpful was that I got introductions to many affiliates that I still work with today and those people helped me in the early days. I’m talking about title reps, home warranty reps, lenders, escrow officers, home inspectors, termite companies and lots more.

What also helped me a lot, were the office meetings. The manager we had always put together timely subject matter and brought in interesting speakers. Most importantly, I was able to see how other agents at all levels, from those even newer than me, to some of the top producers in CA were doing. So, in that regard, I had put myself in the right environment to succeed. And that’s what you need to do too.

Remember that for the first few years of your career, you will be calling and greeting prospects with “Hi, I’m from - fill in Brokerage name.” So, best to believe in that firm and in your choice. It makes a difference.