Any Tips When Selecting a Broker?
Real Estate Agent · NJ · Member since 2020 · 40 posts · 26 votes
Any Tips When Selecting a Broker?
Most Popular Reply
@Darcy Reynolds
You don’t necessarily want a team because you won’t be working the whole “trade” as an agent. Teams are basically mini-companies within a brokerage — they sit as as quadi brokerages that they NJ Real Estate Commission hasn’t figure out how or whether to regulate.
From what I’ve seen, many teams wind up having you do a function of the process. For better or worse they are completely branded under that agent’s name. Also, you normally don’t get credit for the sales. So, when one looks up your production/sales history there won’t be anything. Since everything, including advertising, is under your team lead’s name, you aren’t getting your name out there.
I honestly think it’s silly because clients sign on for the name of the team lead, but most of the time never get to see/talk/communicate with that agent. They get “bounced” around the myriad of agents working in the “team.”
Actually, my most “troublesome” transactions have been when the otherside is represented by a team.
Some brokerages have a policy that if you a join a team you can can’t go out on your own — you basically have to leave and join another broker if you want to be your own agent.
It’s basically whether you really want to work for yourself or work for someone else and but have a self employed status. So you limit your downside risk by ensuring that as long as your team lead and lead generation agents are doing well, you will have some income. However, you also limit your upside potential because you aren’t able to “take advantage” of actually being a true independent contractor and getting the whole commission.
Ps. We just had another thread about questions to ask brokerage today. One poster gave a long list of good questions. When I find it I’ll send it over.
23 Replies
- Real Estate Broker · North Bergen, NJ · Member since 2016 · 21 posts · 3 votes6y
@Darcy Reynolds interview teams and join team. They have the leads. Brokers and brokerage are not in the sales business believe it or not. Teams are the best option to guarantee you get leads and can make money under 6 months instead of going at it alone.
- Real Estate Broker · North Bergen, NJ · Member since 2016 · 21 posts · 3 votes6y
@Darcy Reynolds interview teams and join team. They have the leads. Brokers and brokerage are not in the sales business believe it or not. Teams are the best option to guarantee you get leads and can make money under 6 months instead of going at it alone. 
- Real Estate Agent · NJ · Member since 2020 · 40 posts · 26 votes6y
@Derek Gomez Great advice! Thanks Derek.
- Realtor · Fayetteville, NC · Member since 2019 · 97 posts · 109 votes6y
I joined a team right away and I am glad I did. Expect more of your commission to go towards the team split. If you join a good team it will be worth it. Ask if they have training provided, if they have transaction coordinators, and if they provide leads.
I really enjoy the people that I work with and I have learned so much in a short period of time because of them.
- Real Estate Agent · NJ · Member since 2020 · 40 posts · 26 votes6y
Appreciate the advice @Chris Stroup! I definitely intend on joining a team. Sure you give up more commission, but it seems like the return is well worth it taking into consideration the support. I am curious why people would be incentivized to not join a team... Earning more commission is great, but as someone just starting off I feel like the mentorship is crucial.
The questions mentioned regarding training, transaction coordinators and leads are great to ask, will be sure to do so.
- Realtor · Fayetteville, NC · Member since 2019 · 97 posts · 109 votes6y
@Darcy Reynolds I agree about the commission split is worth it. Being on a time offers so many advantages. If you find the right team you can go from zero experience to selling all the houses in no time.
I am pretty sure if I was doing this on my own I would have been sued 7 times and probably had my license taken. lol. Having a transaction coordinator to keep you in line is the greatest thing ever.
Good luck!! Being a real estate agent is a lot of fun.
@Darcy Reynolds
You don’t necessarily want a team because you won’t be working the whole “trade” as an agent. Teams are basically mini-companies within a brokerage — they sit as as quadi brokerages that they NJ Real Estate Commission hasn’t figure out how or whether to regulate.
From what I’ve seen, many teams wind up having you do a function of the process. For better or worse they are completely branded under that agent’s name. Also, you normally don’t get credit for the sales. So, when one looks up your production/sales history there won’t be anything. Since everything, including advertising, is under your team lead’s name, you aren’t getting your name out there.
I honestly think it’s silly because clients sign on for the name of the team lead, but most of the time never get to see/talk/communicate with that agent. They get “bounced” around the myriad of agents working in the “team.”
Actually, my most “troublesome” transactions have been when the otherside is represented by a team.
Some brokerages have a policy that if you a join a team you can can’t go out on your own — you basically have to leave and join another broker if you want to be your own agent.
It’s basically whether you really want to work for yourself or work for someone else and but have a self employed status. So you limit your downside risk by ensuring that as long as your team lead and lead generation agents are doing well, you will have some income. However, you also limit your upside potential because you aren’t able to “take advantage” of actually being a true independent contractor and getting the whole commission.
Ps. We just had another thread about questions to ask brokerage today. One poster gave a long list of good questions. When I find it I’ll send it over.
@Darcy Reynolds
Oh, but to answer your OP question (other than if I can find that other thread):
Find out what are all the fees/ costs. Eg, E&O premium, any franchise fee, mls fees (if you need to join multiple MLS for your area since NJ as about 12), any desk fees, any other fees, etc. you may not know all the categories, but they are usually pretty up front of you ask them.
Also, sounds like you want to do full time agent work as opposed to rei? Find out what “other” stuff they want — technically as an independent contractor they can’t have you do stuff outside your contract. But, newbies generally have to sit the front desk. You could be pulling three to six or more shifts a month. What meetings and frequency? Training sessions as well. Who might be your mentor...
Remember, like just about all businesses, it’s about people. With a few exceptions, just about all the brokerages are franchises or obviously independent brokerages. So each will have their culture, way of doing things, provided tools (that’s one more thing to ask). I know some clients have been perplexed because they just see “ReMax” but don’t realize each brokerage is an independently owned brokerage. Just even here, some of brokerages use Dotloop, some use DocuSign.... when a client works with a remax realtor but with a different brokerage, all of a sudden the forms and electronic signing tool is different. Now, I’m not saying you need to select a brokerage on which tool they use while you are starting out, but just be cognizant of this before you join a brokerage that for some reason makes you pay for your own.
Ask about who leads are distributed (assuming you didn’t select to work on a team)? What are the referral fees? I hear Weichert is the worst. If they give you a lead, Weichert takes a referral fee for that lead, and any subsequent lead from that lead (that lead refers you to their friend) in perpetuity. I don’t know how they enforce it, but what a draconian policy.
I suppose, what are you looking to get out of having your license? That’s rather important to help focus your list of questions. In my opinion, you should be interviewing brokerages, not them interviewing you. NJ has the most number of agents out of any single State. So agents are a dime a dozen, and brokers make their money by agents closing transactions. I know some brokerages have limits imposed on the number of agents they can hire. But, usually brokerages need to keep feeding in new “blood” given the hire “failure” rate in this business.
Direct message me if you want to chat. I’d be happy to help you out any way I can. Where in nj are you?
Good luck on your exam next week.
- Nashville, TN · Member since 2020 · 17 posts · 8 votes6y
7 years in real estate investment experience, but this is my first year as a licensed Realtor. When I got my license last December, I interviewed 5 brokers, and researched several others. For me it came down to one thing primarily -- I wanted to be under a managing broker whose values and character align with mine. That was paramount. In addition, I left my previous secure government job largely because I wanted more time freedom. My current broker allows me to build my own business on my own terms. Sure, the start up was harder than it might have been in some ways, but I wasn't having to work a set schedule or spend time doing the same repetitive actions over and over. Given the chance, I would make the same choice all over again!
There are great incentives working for a team, even with giving up more of your commission.
However, you can hire a transaction coordinator even as a solo agent to keep you in check. Also, in my opinion, there is more to real estate than just leads. Eventually if you want to make it yourself, you'll have to learn how to make your own leads.
Anyone can teach you how to fill out a contract. The hardest part of being an agent is finding your own leads and getting them to commit with you.
Once you get a good reputation, the leads will come to you.
I was told when I joined to at least try it first yourself. I learned a lot being by myself. It has been tough, but to me it was well worth it. Like anything else, including real estate investing, you learn by trial and error.
- Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes6y
@Darcy Reynolds If your goal is to be a full time agent I would highly recommend joining the most productive team you can. This will get you in front of a lot of people so you can start building your network and get experience in different situations. Sure you won't get a high split, but you can begin to work with buyers and get your feet wet. Stay consistent everyday and you will eventually see results.
- Real Estate Broker · Medford, NJ · Member since 2018 · 236 posts · 177 votes6y
@Darcy Reynolds joining a team is great but many people decide to be an agent because they want to work for themselves. With a team you have a boss. Many brokerages offer mentors with or without a team. I chose a brokerage that had the best training and mentorship program. First year was rough, but year 2 and 3 have been amazing. Questions to ask brokerages are:
What are the commission splits and plan options?
What type of training do you offer?
Do you have mentors or just a training program or both?
What is expected of me as an agent working with your brokerage?
Meet some people in the office and see how you mesh with them. Some offices are filled with great people, some are very cutthroat and you’re on your own.
You’ll know who to go with after you talk to 3-4 brokers or teams because it’ll feel right.
- Investor & Agent · Tulsa, OK · Member since 2016 · 1k+ posts · 1k+ votes6y
@Darcy Reynolds
Lots of great advice above.
I chose to go somewhere full of a lot of strong successful agents so I could be inspired and challenged.
Smaller boutique brokerages sometimes have greater tight nit relationships... but do all have systems and support and time to teach and mentor? Some; yes, some, not sure...
Just my $0.02
Congratulations and good luck
- Real Estate Agent · Philadelphia, PA · Member since 2020 · 294 posts · 245 votes6y
Hi @Darcy Reynolds I would have to say the most important things to look out for when interviewing brokers is how are they going to help you succeed in your career. I wouldn't solely focus on the broker when interviewing I would also focus on the rest of the team and see if they help grow and mold you. Are your coworkers willing to help you through the difficult times that everyone faces? I focused on the team atmosphere that the office had, the mentality of "your only as strong as your weakest link". Will the rest of the team help you succeed when you are down, or will they stab you in the back when you're not looking.
Would love to share my experiences in the industry if you have any more questions.
- Real Estate Agent · NJ · Member since 2020 · 40 posts · 26 votes5y
Great news everyone, I am officially licensed in NJ! Cannot wait to get these interviews started. I truly appreciate all of the valuable advice and support.
@Chris Stroup Sued 7 times! Haha that made me laugh. Sounds like a transaction coordinator is definitely critical. Thanks for the advice!
@David M. Wow, such great advice on questions to ask. Thank you so much! I see what you are saying about the lack of recognition when working under a team. My ultimate goal is to invest in real estate, so it means a lot to me that my mentor has RE investing experience. I plan on focusing in North Jersey, specifically Essex county and the surrounding areas.
@Josh Gregory Love your back story and feel our values align. My goal is to be an investor, but I wanted to start my journey as an agent to gain experience on the transacting side. Thank you for your advice!
@Jin Kim Thanks for the valuable advice!
@Michael Noto I definitely want to land on a highly productive team to begin building my network. Consistency is key, I appreciate the advice.
@Michael Brattelli Thanks for the list of questions, very helpful. I cannot wait to get these interviews started.
@Nate Sanow Agreed! All the advice is extremely valuable. I am also looking for that kind of environment. Thank you Nate!
@Dan Powers Great advice! I love your point, “you’re only as strong as your weakest link”. The team environment is so important. Thanks for the feedback.
Congrats! Reach out if you ever need any help or advice. I'd be happy to chat. Take care and stay safe.
- Teaneck, NJ · Member since 2015 · 49 posts · 11 votes5y
Get started with a large educational brokerage such as a keller. Join a team to be held accountable to team members and develop a work ethic. Once your established then your ready to start shopping brokerages to what's best for a veteran agent at that point
- Real Estate Agent · NJ · Member since 2020 · 40 posts · 26 votes5y
@Boris Portnov Thanks for the advice!
- Member since 2020 · 27 posts · 4 votes5y
Licensed realtor here, leads are somewhat irrelevant when choosing a broker because you can get your own leads with advertising via Zillow/Realtor.com. In my opinion, by far the most important thing you should look for are the commission splits. My current broker charges a flat fee regardless of deal size. Being successful is all about investing time and gaining expertise in your area, when you do close a deal, which you will :), you want to make sure as much of it stays in your pocket as possible. Secondly what TEAM does the broker have around them. Who are their preferred lenders? Recommended home inspectors? Title companies? Is their entire network available with a simple phone call? As a realtor you are only as good as your team. You are the only one who moves without a guarantee of income, so you have to minimize time spent closing a deal so you can maximize time spent showing deals. If your broker doesn't have a go to lender/home inspector/title company that means you have to build your own network, and for that you should be getting charged less commissions. So ideally you would go with the best balance between network and commission splits. Lastly but also important, where is their office located, and will you have access to it? Office should have easy access to parking, be somewhat centrally located to your target area, and most important be presentable, your client(s) should be impressed when they walk in. If not, again, commission rates should be lower. So that's my $.02 hopefully it helps.
- Real Estate Agent · NJ · Member since 2020 · 40 posts · 26 votes5y
Thank you @Aram Kenneth Honore! Appreciate the motivation as well. Great advice.
- 5yCharlie CameronBusiness MemberInvestor · Niceville, FL · Member since 2017 · 451 posts · 366 votes
Hey @Darcy Reynolds! This list from a blog post of mine might help:
- What are your fees?
- What is the cap and split?
- What mentorship opportunities do you provide?
- What are some of your Training Programs?
- What kind of Lead Generation Tools will I have Access to?
- What are my Obligations as an Agent?
- How can I gain Access to my Managing Broker for Support?
- Where is the Office Located?
- How will I have Administrative Support?
- What Unique Platforms and Technologies do you Offer?
- How are Successful Agents Recognized?
- What Benefits do you Offer Agents?
- How will my Transactions be Processed?
- What makes your brokerage unique?
You're definitely spot on, you need three things to be successful in anything: training, mentorship, and HUSTLE! Go crush it. :D
- Real Estate Agent · NJ · Member since 2020 · 40 posts · 26 votes5y
@Charlie Cameron this is a great concise list of questions! Much appreciated, thank you.
Join the conversationCreate a free account to reply, vote on answers and follow this thread.