Choosing the right real estate broker or agent involves asking questions. You want the brokerage you select to have a strong market presence. But with so many brokerages and agents out there to choose from, finding a perfect fit may be more of a challenge than you expected. Review the following five steps to help with the selection process.
FEES Though real estate agents can set their fees (which you’ll pay as a seller). If you see a much higher rate, ask what you’re getting in return for it. Better yet, negotiate that rate down as much as possible. Desk fees, printer, copies, transaction fees, insurance, and more…add it all up and see what the bottom line is per month. This will not only help you choose a broker but will also help you plan your career.
ADMINISTRATIVE SUPPORT Paperwork can be a nightmare for many people getting into the business. Some people love selling, some people love the creativity of marketing, but very few love doing paperwork. An agent who has supported can offer a high level of customer service to every customer, but you need to pay a fee to use them.
BROKERS REPUTATION In fact, of the various factors that you must look at, broker reputation is key. Research how long agents stay with their brokers. If many agents have been with a broker for long periods, it is a good sign that the broker treats agents fairly. Most importantly, ensure that the broker has good risk management. Brokers need to help the client but when they give too much leniency it amounts to bad risk management. Be cautious in such cases, all these are reputation issues.
INTERNET PRESENCE This is very important these days. Everybody uses the internet. A successful broker will have an attractive website activity on social media and well-written online reviews. Having a website that looks professional and presents each agent in a professional manner is easy to do. It is not expensive and does not take a lot of programming. Therefore, if a broker cannot do this it is a major red flag.
COMMISSION SPLIT Too many new real estate agents think choosing a broker is primarily based on commission splits. That is a horrible way to choose a broker when you are starting. When you’re not selling, you’re not getting paid, when you’re selling, you’re going to split the proceeds with your broker. Some brokers will give a 100% commission. If a brokerage claims to pay 100% commission, it means they will collect from you in other ways, such as transaction fees, E and O premiums, and desk fees and they will probably offer you zero assistance. And some brokers offer salaried positions and benefits but these are few and far between. Now keep in mind that, these are very general concepts. Each brokerage is different, and everything is negotiable. However, your leverage to negotiate is not very strong when you have never sold anything. Just get going, and as you sell more you will be in a better position to negotiate your terms