Real Estate Industry Knowledge

Important Questions to Ask When Interviewing a Sponsoring Broker

1. Do you provide training?

How many days or hours of formal training?
Is there a cost to me?
If so, how much?
Who will be available to help me after the training?
Is that person easily and readily available to me?
What other "hats" does that person wear?

2. Do you have a mentor program where I can work with a top producer for a period of time?

3. At what commission split will I begin?

Do you offer a graduated commission split that pays me a higher percentage as my production increases?
If so, and I reach say 60%, do I go back to my beginning split at the end of a designated period?
May I have a copy of the commission schedule?

4. Do you have any bonus programs such as in house sales, exceeding goals, recruiting other agents , etc. ?

5. What cost will I incur?

Initial: Licensing, application, business cards, photo, name badge, local Association of Realtors dues, etc.
On going: Monthly or quarterly charges such as long distance calls, desk fees, franchise fees, voice mail, etc.
Per listing: Sign, lock box, advertising, etc.
Per sale: Error & omission insurance

6. In which publications do you advertise?

How often?
Who pays for it?
Who determines which listings get advertised?
Who writes the ads?

7. Do I need specific liability coverage on my automobile?

If so, how much?

8. When will I start property time?

What is the minimum amount per month?
What is the maximum amount per month?
How many hours per shift?

9. My choices of farm areas are:

1st choice________________________
2nd choice________________________
Are either available in this office?

10. Will I be allowed to hold other agents listings "open" to attract buyers to help me get started?

If so, how soon?

11. Do all of your full time agents farm a territory?

12. What do I, or any other agent , have to do to have a protected territory?

13. Please show me examples of the marketing material available to me.

Examples include:
- Announcements
- Just listed
- Just sold
- Just participated in a sale
- Door hangers
- Free market analysis
- Brochure of the company
- Company letterhead
- Legal size preprinted shells for my flyers
- Letter size, heavy shells for color brochures
- Is there a cost to me for this material?
- If so, how much?
- Who pays for the postage? (Bulk and Individual)

14. Do you have a company policy manual?

Will I have a copy if I sign on with you?
May I take it into the conference room now and review it?

15. How many full time agents do you have?

How many do you want?
How many part time agents?
What is the agent turn over rate?
What is the average tenure of agents?

16. What was your gross volume of sales last year?

Average per full time agent?

17. How many computers that access the MLS are available to agents? (not including secretaries)

What is the ratio of agents to computers? (12 to 1, 15 to 1, etc.)

18. Will I be reimbursed for expenses of my initial classes?

19. What type of copier do you have? Could you show me a copy made on it?

20. Do you have a full time receptionist /secretary?

Would clerical assistance be available to me such as preparation of monthly mailers, typing letters, preparing flyers, entering and making changes in listings, etc.

21. About referrals:

When will I be given one?
After I am eligible, how many can I expect per quarter , assuming I prove I can do a good job with them?
What are your sources of referrals?
Approximately how many referrals do you give out to the agents per month?
Do you have a relocation department?

22. How many listings does the office have?

Is this your normal amount?
How many is that per full time agent?
What is the average list price of the listings?
What is the average sales price of the office?
What percent of your listings are sold in-house?

23. Regarding market share, if you think about the top ten companies in this area, what number is this office?

What are your expectations of me?

24. What is the average income of full time agents in this office per year?

25. Explain the advantages or disadvantages of an independent versus a franchise, or multiple office real estate company.

26. What is your position regarding Buyer Agency?

27. Does this office have a focus on team work, or does each agent operate pretty well on their own?

28. How long has this company been in business?

29. What is your definition of a full versus part time agent?

30. Do you hire part time agents?

If so, what do you expect from them?

31. What accommodations do you offer new agents?

32. Do you have a commercial department?

Do you do property management?
Do you have an apartment leasing department?
Could I eventually go into one of these departments?
Will I receive referral fees from business' I may refer to these departments?

33. What is the policy on bonuses received on a sale I make?

Do I get the total amount, or is it split with the company? If so, at what split?

34. What is the policy on referral fees I receive from sending outgoing referrals?

Is it split with the company?
If so, at what split?

35. I understand that I will be operating as an independent contractor, and that your contributions are limited by that status. However, some companies offer perks such as availability of health and life insurance, retirement or other benefits. Does your company offer anything along those lines?

36. Has your company been involved in litigation regarding ethics or deceptive trade practices?

If so, would you briefly discuss it with me?

37. Will I have a working partner?

38. What commission does your company charge the seller for selling a home?

What commission do you charge for undeveloped land or lots?
Do I have the authority to list for less commission under certain circumstances?
If yes, what are those conditions?
Could I list it for more?

39. Do you have weekly sales meetings and property tours?

What day? What time? How long do the meetings usually last?
Could I attend a sales meeting before I make a final commitment to come on board?

40. What are your office goals?

Do you have expansion, move of office, or growth in your immediate plans?

41. What special rewards could I expect if I become the top producer of your company?

42. Does your company have "Career Apparel"?

If so, am I required to wear it?
Do you have a dress code?
If so, could I have a copy of it?

The next step: Getting your Broker's license