5 min read · November 4, 2022
You’re tired of working set hours and in a cubicle, so you decide to become a new real estate agent. However, starting this path requires you to work with a broker.
Before you choose the first one you find, ask a few questions. That way, you can learn if they offer the resources and assistance you’ll need.
One of the first things you should ask is if the broker has sponsored other agents. Working with a new real estate broker may be okay, but you want to make sure you’ll get the support you need.
If a broker has experience sponsoring agents, they’ll probably be a better sponsor for you. They’ll know what help a new real estate agent needs.
They might also have more resources to help you learn and succeed on the job. That way, you don’t have to worry about trying to learn everything on your own.
You should also ask your sponsoring broker if they’ll provide any training or other materials. Training can help you learn about your market and how to find clients and get sales.
Of course, you can learn a bit with each sale, so you don’t need training. However, if you want to fast-track your business, you should consider getting training.
If your broker doesn’t offer it, you may need to look elsewhere. Either way, you should know before choosing a broker if they’ll teach you or if you have to learn as you do the job.
Along with training, you should ask if they can connect you with other real estate agents they sponsor. Then, you can ask the other agent for tips to succeed in your business.
Now, you may not need this if you already have experience and are building your own business. However, it can help if you’re new to the industry.
A sponsoring broker doesn’t have to offer a mentor program. If they do, though, you can watch one of the most successful agents go through a sale, so you can replicate their process yourself.
Another thing to consider is the commission split between you and your real estate broker. Ask for a copy of the commission schedule and consider if there’s a graduated commission where you can earn more.
Knowing the commission schedule can help you predict how much you’ll make each month. That can give you a good idea of which broker will help you get the money you need to pay your bills.
Some brokers let you keep all of your commission, which is great. Unfortunately, others may take a significant chunk of your earnings, which can add up as you perform better.
You should also ask what you’ll have to pay for as part of the broker sponsorship. When you first start, you may need to pay for business cards, your real estate license, a name badge, and a photo.
Each month or quarter, you may owe money for long-distance calls and voicemails. Of course, you’ll probably also have to pay to advertise each listing, and you may have to pay for error and omission insurance.
Ask the broker if they cover any of those costs. Consider the estimated costs per month or year so that you can determine if one broker will offer you better profits than another.
Next, you’ll want to ask if you need to pay for a specific type of errors and omissions insurance. Some real estate agents need liability business iinsurance.
You should determine if you already have the coverage you need. If not, you’ll need to look for quotes for a new policy, and you should consider how much that will cost you.
As a new real estate agent, you’ll need to spend a lot of time marketing. Be sure to ask a potential sponsoring broker what materials they can provide.
For example, they might have brochures, door hangers, and other resources. Consider if they can provide you with a market analysis of the area to help you find good clients.
Don’t forget about online marketing materials as well. Some brokers may offer you a web page where you can direct people who want to work with you.
The best type of broker sponsorship for agents who want their independence will let you control your schedule. If you don’t want to work all of the time, ask how many of their agents are part-time.
Some brokers may encourage you to work full-time, which is nice for some people. However, maybe you have kids, or you might want to spend time on other businesses or projects.
Knowing if you can work part-time is crucial when choosing a broker to sponsor you.
As you start getting clients, you may not have time to do all of your marketing work and other tasks. In case that happens, you should know if the broker has an office assistant who can help you.
Consider how much the secretary works and if they can prepare and send mailers, for example. Then, you’ll know if you may need to hire help outside of the broker firm.
You’ll most likely be a contractor as a new real estate agent. However, some brokers still offer some sort of benefits package to their agents.
Consider if you can get help paying for things like health insurance or contributing to a retirement account. Knowing what benefits are available can help you choose between two similar brokers.
However, don’t let a lack of benefits deter you from working with someone. They may offer other perks, such as a higher commission for you.
If you’re a new real estate agent, you should find the best sponsoring broker. Without a broker, you won’t be able to find clients and make sales.
Asking the right questions can help you narrow your search to a broker who will help you succeed.
Are you ready to start your real estate career? View our plans to start using us as a broker.