Real Estate Careers - Evaluating Real Estate Firms

Estimate your expenses and potential income

• What commission rate do they offer? Are commissions paid on a sliding scale, with the percentage you earn increasing as you bring more income to the firm?

• Are commissions paid immediately upon closing?

• Does the firm pay a higher percentage for 'in house' transactions? (Where both the listing agent and selling agent work for the firm.)

• If the firm is part of a franchise, what percentage of each commission earned is retained as a franchise fee?

• Ask to review a sample commission settlement statement, so that you can see exactly how commissions are recorded and distributed.

Typical First-Year Income

When you ask the broker to give you an idea about an average first-year income, keep in mind that it is truly just an average. Some agents come to the office every day, even if they aren't on duty. You'd be surprised how many leads they receive on those days, sometimes because the duty agents are on the telephone, or have left to show property to walk-in clients.

Other new agents only show up when they are scheduled for duty. Which type of agent do you think might have a higher first-year income?

Office Expenses

• Who pays for long distance telephone calls made from the office?

• How about stamps, photocopies, and basic office supplies?

• Does the firm charge agents a flat monthly fee, or a percentage of certain expenses?

Errors & Omissions Insurance

Does the firm carry E&O Insurance for its agents, or are you expected to purchase this liability insurance yourself?

Multiple Listing Service Fees

You may be required to join the local Multiple Listing Service to work for the firm. In some cases, you may need to join a second, or even third MLS office to work effectively in the community. Ask about the expenses associated with each membership.

Make a list of the questions above before your interview, and add any others you feel are important. Sure, you can change agencies if the first one doesn't work out, but that's a waste of time and money. Getting the answers to your questions before you start working helps you make the best choice the first time around.