16 Questions to Ask When Interviewing a Real Estate Broker

One of the most significant decisions a new real estate agent can make is which brokerage to partner with as they kick off a new career in real estate. In this article, we outline 16 questions you should consider asking when interviewing brokerages.

Key Takeaways

• Understanding the brokerage’s commission model is crucial, as it directly affects your income. Inquire about brokerage or franchise fees and what they cover, such as insurance or MLS fees, to assess the overall financial implications.
• Evaluate the benefits, including health insurance, marketing support, and retirement plans. Additional benefits like company cars or gas reimbursements can also be significant.
• Seek information on continuing education, mentorship programs, and professional development support. This helps ensure you have the resources to grow and succeed in your career.
• Understanding the firm’s culture, working hours flexibility, and required attributes for success can help determine if the brokerage is a good fit for you. Inquiring about the firm’s short-term and long-term goals provides insight into their future direction and alignment with your career aspirations.

Financial Compensation

One of the most important aspects of selecting a brokerage is financial compensation. So, understanding their compensation model is of the utmost importance. Here are some questions to consider regarding financial compensation:

1. What is the brokerage commission model?

The most common commission model is one in which the brokerage takes a certain percentage of your commission. Some brokerages may allow you to take home 100% of your commission but require you to pay a desk fee. Others may take more of your commission but provide more benefits, educational support, and promotional tools. Still, others may have a commission cap in which you get to keep 100% of your commission after hitting a certain amount you’ve paid the brokerage. Be aware that commission rates are negotiable, especially once you have some experience and can prove your value to the firm.

2. Are there any brokerage or franchise fees?

While national brokerages have many perks, such as name recognition and more resources, they often have brokerage or franchise fees that agents must pay. If this is the case, you’ll want to know how much the brokerage or franchise fee is. Additionally, you will want to ask if they help cover other costs, such as errors and omissions (E&O) insurance and MLS fees.

3. What can a new agent expect to earn in their first year at the firm?

This question may be difficult for them to answer since it can vary drastically from agent to agent and year to year. However, having a number or range to keep in mind can help you set your expectations while motivating you to be the top-earning rookie real estate agent in brokerage history!

Brokerage Benefits

Brokerages can vary widely in the benefits they provide to their agents. Here are some questions to consider regarding brokerage benefits:

4. Do you offer health insurance benefits?

While large brokerages may provide health insurance, it’s not guaranteed, especially for smaller firms. If the brokerage doesn’t offer health insurance, other options, such as the healthcare.gov marketplace or association-sponsored coverage plans like the NAR REALTORS® Insurance Place, are available.

5. What kind of marketing support do you provide?

Marketing your business is essential for real estate professionals, particularly new agents. However, marketing costs can add up. Ask if they provide marketing resources and materials such as business cards, a client relationship management (CRM) platform, website hosting, e-signature tools, and signage, to name a few. Even if the brokerage doesn’t cover the total costs of these materials, they may have access to brokerage discounts.

6. Do you offer any retirement savings plans?

Most full-time jobs provide an employer-sponsored retirement savings plan, such as a 401(k). Since your income will be commission-based, your brokerage may not offer such a plan. However, there are great tax-advantaged retirement accounts, such as a Roth IRA, that will help you save for retirement.

7. What other benefits do you provide?

The brokerage may offer agents some non-traditional benefits (such as a company car, gas reimbursement, etc.). Allow them to outline these benefits so you can understand why joining this brokerage may be worthwhile.

Educational Support

The best real estate agents are those who are constantly learning. As such, you want a brokerage that will support your career development. Here are some questions to consider regarding educational support:

8. Do you help cover the cost of continuing education?

In Nevada, real estate agents must complete 36 hours of continuing education every two years and 30 hours of continuing education within the first year of licensure. While the cost of continuing education is very reasonable, you should inquire if your brokerage will cover the cost for you.

9. What mentorship or training program is available for new agents?

As a new real estate agent, you might feel overwhelmed and need help figuring out how to get started. A mentorship program, in which you shadow a seasoned real estate agent, or a more structured training program, can help you accelerate your knowledge and skills as you kick off your real estate career.

10. Do you help cover the cost of professional development, such as post-licensing, webinars, designations, membership dues, or conference registration?

Investing in your professional development is an integral part of being a successful real estate agent, but the costs of attending classes, webinars, and conferences can add up quickly. Ask the brokerage if it would cover some of the costs associated with your professional development.

Brokerage Culture

A brokerage’s work culture can significantly impact your career satisfaction and overall success as a real estate agent. Here are some questions to consider regarding company culture:

11. How would you describe your firm’s culture?

This question helps you understand what working at the brokerage would be like. Is it more relaxed? More professional? Competitive? Pay attention to the adjectives they use to describe their culture.

12. How does it differ from other brokerages?

Odds are the person you’re interviewing has worked for other brokerages in the past. Get their opinion on how this brokerage compares to other brokerages. If this is the only brokerage they’ve worked for, ask them why they’ve never switched to a different brokerage.

13. What do you like about working for this brokerage? Is there anything you would change?

Asking what they like about the brokerage is an excellent way to understand some pros of working there. Ask them what they would change instead or what they don’t like about it to get some negative aspects of the company. This softer language makes it clear that you are not asking them to bad-mouth their employer.

14. How flexible are the working hours, office layout, etc.?

If the brokerage requires you to be on call during certain hours of the day or be in the office to greet walk-ins and answer the phone, you’ll want to be aware of that before you select a brokerage.

15. What attributes or characteristics does one need to thrive at this brokerage?

This is an excellent question because it allows you to see if the brokerage will be a good cultural fit for you. If they say being a team player is key, and you prefer to work independently, there may be better cultures for your working style than this brokerage. Likewise, if they say you need to be a self-starter and you prefer to have more support, it may not be the best brokerage for you.

16. What are the firm’s short-term and long-term goals?

If they are a smaller brokerage, are they looking to grow and expand their team of agents? Are they looking to enter or dominate a particular market niche? Are they planning on adding another branch or office? Questions like these will help you understand what direction the brokerage is headed and if their business goals align with your career goals.

Bottom Line

These are just some questions, not a comprehensive list, to get you started. You’ll want to research the brokerage to get a sense of its reputation in the community and its reputation amongst local real estate agents. Reach out to agents who currently work at the brokerage to see what their experience has been like and if they have any advice for you as you continue your search. Also, you may want to contact non-real estate agents in the real estate industry, such as appraisers and contractors, to get their opinion of the firm.

Additionally, be sure to interview multiple brokerages. Even if your first interview goes well and it seems like the brokerage for you, it’s a good idea to explore your options so you can be confident in your decision. Finally, Key Realty School offers job placement to students at 50 different companies across Nevada to make your brokerage search easier. Learn more here.