Interviewing Brokers

Before deciding to work with a real estate brokerage firm you should have the answers to the following questions. I always recommend talking with at least three brokers or the sales manager before making a decision.

Are you a member of the local Realtor® Association?
If the answer is yes to the next two questions then you will have to join as well.

Are you a member of the local MLS?

Do you have a web site?

Do you allow sales associates to link to the company web site?

Do you charge a desk fee?

Do you have an office policy procedure manual?

Do you have an independent contractor agreement?

When and how often do you conduct sales meetings?

What is your firm's market share?

Is office space provided?
This is important to have a place to negotiate/talk with your customers.

Is there a charge for the office space?

What is the average sales volume of your sales associates?

What is your advertising policy?

What is the longest time a sales associate has been with your firm?

What is the average length of time your current sales associates have been with your firm?

How many sales associates have left your firm within the past six months?

How is a customer call/walk-in handled?

How are customer calls/walk-ins distributed?

Does the firm carry errors and omission (E&O) insurance?

Who pays for the E&O insurance?

If I'm charged for the E&O insurance, may I see a copy of the policy?

Is it possible to speak with your newest sales associate?

How has the market share for your company changed over the past year?

What is the commission split offered newly licensed sales associates joining the firm?

What is the commission split offered experienced sales associates joining the firm?

Is the commission structure graduated?

How or when does the commission split graduate?

How or why is the commission split reset?

Are all sales associates employed by you on the same commission structure and split?

Do you charge a transaction fee to buyers and or sellers?

If the buyer/seller doesn't pay the transaction fee who pays the fee?

Are there any costs or fees deducted prior to the commission split?

The costs or fees that are deducted what are they?

Do the costs or fees that are deducted apply to all sales associates?

Are there any other fees or costs sales associates are charged for?

If a sales associate leaves your firm what happens to their listings?
All listings belong to the broker.

What happens to the clients under a buyer agreement?

What happens to pending contracts that have not closed?

Is there a penalty of any kind if a sales associate leaves your firm?

What training is provided by your firm?

Who conducts the training?

Is there a charge for the training?
Some firms charge a fee; some reduce the commission split for the first 3 to 6 transactions; and some do both.

Would you provide me with the names of the last two agents who have recently completed the training so I could talk with them?

Does the brokerage do anything other than what we have discussed to ensure the success of a new sales associate?

If you have any suggestions that you would like added to our list of questions please email them to us. We will add your question along with your email address so that our readers will be able to email you for additional information. If you do not wish your email address to be published let us know in your email.

For comments, issues, and concerns go to my blog and let me know what you think about getting your Florida Real Estate License, Subliminal Selling Secrets™, Lease Option Investing, Short Sale and Pre-foreclosure Investing, and Listing and Selling Real Estate.