5 Must Ask Questions Before Signing With A Broker

Only Sign with a Brokerage Once You Ask These 5 Questions!

Starting your real estate career or considering a move to a new brokerage is an exciting step, but it’s also one that requires careful thought. Joining a brokerage is a lot like choosing a business partner—it’s a decision that can shape your career success, professional growth, and overall satisfaction. Before you commit, ask these five essential questions to ensure you’re making the right choice.

1. What Is the Brokerage’s Commission Structure and Fee Schedule?

Your earning potential starts with understanding how a brokerage structures its commissions and fees. To get the full picture, ask:

• Splits and Caps: What percentage of commissions will I keep? Is there a cap after which I retain 100%?
• Fees: Are there recurring costs for desk space, transaction processing, or other services?
• Extras: Will I be charged for training, marketing tools, or technology platforms?

For instance, some brokerages might offer an 80/20 split with a $15,000 cap, while others may opt for a flat fee model. Knowing these details upfront helps you evaluate how much you’ll take home versus what you’ll invest in being part of the brokerage.

2. What Training and Mentorship Programs Do You Offer, Especially for New Agents?

A good brokerage invests in its agents’ success, especially if you’re new to the industry. Look for structured training and mentorship opportunities that will set you up for long-term growth. Key questions include:

• Structured Training: Are there formal programs covering topics like contracts, negotiations, and lead generation?
• Mentorship: Can I be paired with an experienced agent for one-on-one guidance?
• Frequency and Costs: How often are training sessions held, and are they included in the fees?

For example, a brokerage that offers weekly training sessions and access to a dedicated mentor can provide the confidence and skills you need to thrive in the competitive real estate market.

3. How Does The Brokerage Generate Leads, and What Is the Lead Distribution Policy?

Leads are the lifeblood of a successful real estate career. It’s crucial to understand how a brokerage approaches lead generation and distribution. Here’s what to ask:

• Lead Sources: Does the brokerage provide leads, and how are they generated (e.g., marketing campaigns, referrals)?
• Distribution Policy: Are leads distributed evenly among agents, or based on experience or performance?
• Agent Responsibility: If I’m responsible for generating my own leads, what support does the brokerage offer?

For example, some brokerages provide leads through their website and allocate them to agents on a rotating basis, while others require agents to handle their own lead generation entirely. Understanding this system will clarify your potential pipeline.

Pro Tip: Most real estate brokerages are not going to offer leads, but many teams will.

4. What Marketing and Technology Resources Does the Brokerage Provide?

In today’s digital-first world, having access to modern marketing and technology tools is a must. To evaluate the brokerage’s resources, ask:

• Marketing Tools: Do they provide a personal website, branding materials, or social media support?
• Technology Infrastructure: Are tools like CRMs, transaction management software, or e-signature platforms included?
• Costs: Are these tools covered in my fees, or will I need to pay extra?

A brokerage that equips you with cutting-edge resources can save you time, enhance your professionalism, and help you attract more clients.

5. Can You Describe the Company Culture and Work Environment?

A positive and supportive work environment is crucial for both your productivity and well-being. To assess the brokerage’s culture, ask:

• Values and Communication: What are the brokerage’s core values, and how do they guide day-to-day operations?
• Team Dynamics: Are there opportunities for collaboration and support among agents?
• Networking and Events: Does the brokerage host events, workshops, or team-building activities?

For example, a brokerage with a collaborative team environment and regular networking opportunities can help you build meaningful relationships and grow your business.

Pro Insight: Speak with Current Agents

Even if you are still in real estate school or preparing for the real estate exam, don’t hesitate to ask if you can speak with a few current agents at the brokerage. Their firsthand perspectives can provide invaluable insights into the work environment, the level of support offered, and what it’s really like to work there.

Your Success Starts with the Right Brokerage

Your future in real estate begins with the right foundation. Take these questions to your next brokerage meeting to ensure the brokerage aligns with your goals, values, and needs. Remember, the right brokerage isn’t just a place to work— they are a partner in your success.

Love,

Kartik