38 Questions To Ask a New Broker
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1 38 Questions To Ask a New Broker Before you leap Take a look, ask the questions and make sure your broker is right for you Franklin Real Estate Brokerage PO Box Southlake, TX travis@franklinbrokerage.com
2 Questions You Should Ask Your Broker Is your broker a good fit? Hi, I m Travis Franklin, Broker/Owner of Franklin Real Estate Brokerage. I took these questions from Champion s School of Real Estate and answered them on behalf of my firm. You deserve to know the answers to each of these questions in order to make sure your office is giving you what you need! I wish you success, happiness and smooth transactions! 1. Do you provide training? Yes!! How many days or hours of formal training? Franklin Real Estate Brokerage will provide a customized program specifically for your needs. I have online material, courses, live coaching, webinars, and more options available. It can be on a schedule or at your own pace. I will also supplement my material with outside trainers and speakers. Is there a cost to me? 1. No cost, educating my agents is one of my primary roles If so, how much? 1. Similar coaching and training costs thousands of dollars, no cost to you Who will be available to help me after the training? 1. Primarily me, with the help of my friends, agents, colleagues and network Is that person easily and readily available to me? 1. Yes, serving you is my job What other "hats" does that person wear? 1. Today I still sell have to sell homes to keep the lights on, but as I grow and add agents I will not be actively listing or selling. I will refer those deals to my agents. My intention is to drive our marketing bus, expand
3 my network, be a public figure, give time to charities, be an author, speak, deliver outstanding education, provide on time, accurate support and help each agent grow to their highest desired level. 2. Do you have a mentor program where I can shadow a top producer for a period of time? We are small and maneuverable enough to make sure every agent gets exactly what they need when they need it. 3. At what commission split will I begin? Agent procured deals start at 85% to the agent and 15% to the broker. Broker procured deals are split 50/50 with the agent working the deal. 4. Do you offer a graduated commission split that pays me a higher percentage as my production increases? No, splits are reviewed annually. 5. Do you have any bonus programs such as; in house sales, exceeding goals, recruiting other agents, etc.? Yes! If you recruit an agent, I ll give you 10% of the brokerage s cut as long as that agent is with the company. At the end of each year, we will offer awards and bonuses to agents reaching milestones in production. 6. What costs will I incur? Initial: Licensing, application, business cards, photo, name badge, dues, etc. Because you are an independent contractor, we are not allowed to pay for licensing, dues or things that would imply you are an employee. We do provide your first set of business cards, head shot photo and a press release announcing you. On-going: 1. $100 monthly office bill includes: Full suite of MS Office products (Outlook, Excel, Power Point, etc), branded , E&O Insurance with $0 deductible, marketing and technology contribution. No royalties or other fees are deducted per sale. Per listing: Sign, lock box, advertising, etc. 1. Company listings will receive company provided signs, lockboxes, advertising and professional photos. Agents must provide their own signs and lockboxes for their listings, and the company will provide photos for free within certain geographic areas. Multiple advertising platforms are available on demand. Broker bears ad costs on broker procured deals and will contribute to agent deals at agent split. Per sale: Error and Omission Insurance
4 1. Included in monthly office bill 7. In which publications do you advertise? We advertise But not in publications or mailers As part of my ongoing growth, I hired a marketing coach at a great expense. We do not advertise in print and here s why: 1) When your business is relationship driven, people look to friends, colleagues or the internet for advice. They do not respond to print ads 2)There is no point in putting broker listings into a magazine at great expense when the world already knows about them through MLS. 3) You cannot track results, views or response 4) You have no idea of your return on investment 5) For the same money you can throw a client appreciation party and get real referrals 8. Do I need specific liability insurance on my automobile? Full coverage, with 300/500 liability and broker named as additional insured 9. My choices of farm areas are: Wherever you choose, you are an independent contractor 10. Will I be allowed to hold other agents listings "open" to attract buyers to help me get started? If so, how soon? Yes, any time. Furthermore, I can show you how to hold any house open from any listing agent, anywhere, every weekend if you like. 11. Do all of your full time agents farm a territory? The two agents I have today do not operate a geographic farm 12. What do I, or any other agent, have to do to have a protected territory? Show me your marketing plan and convince me it s a good idea. 13. Please show me the examples of marketing materials available to me. Announcements
5 Just listed Just sold Just participated in a sale Door hangars Free market analysis Brochure of the company Company letterhead Legal size pre-printed 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) Web pages Prospecting tools I grew up in the printing business, am a professional photographer and have done graphic arts since the mid 1990 s. If we need art work, I usually prepare it. Any graphic design work I do is free to the agents, including announcements and property specific flyers. I have resources in place from several vendors for just listed, just sold campaigns, door hangars, and other printed resources at low costs. 14. Do you have a company policy manual? Will I have a copy if I sign on with you? We have an addendum to the TREC, independent contractor agreement and everyone gets a copy 15. How many full time agents do you have?? Right now NONE! I m looking for motivated agents! How many do you want? 1. Not more than 20 How many part time agents? 1. I prefer not to have part time agents unless they are working towards full time What is the agent turnover rate? 1. Zero at this point, I have two part time agents that have worked with me in the past What is the average tenure of agents? n/a 16. What was your gross volume of sales last year? I sold 22 homes by myself and participated in 16 other deals.over the last 5 years, I ve averaged between transactions a year.
6 Average per full-time agent? There is no reason each agent shouldn t close at least $5,000,000 in business a year 17. How many computers do you have available to agents? Do I need to purchase my own computer and software? Our office is virtual at this time, you may set your home office up however you please. 18. Do I have to pay for my board MLS training? Yes 19. Do you have a full time receptionist/secretary? No, right now I handle it all and can outsource as necessary. Would clerical assistance be available to me such as preparation of monthly mailers, typing letters, preparing flyers, entering and making changes in listings, etc.? We have low cost outsourcing resources available. As the company grows, I intend to add full time admin support in house. 20. About referrals: When will I be given one? 1. Company referrals are available day 1 After I am eligible, how many can I expect per quarter, assuming I prove I can do a good job with them? 1. My goal is to have each agent closing at least 2 or more company deals a month in addition to their own deals What are the sources for referrals? 1. Company marketing, broker network, broker referrals, word of mouth, various ongoing campaigns Approximately how many referrals do you give the agents per month? 1. As many as we can generate Do you have a relocation department? 1. I am on the provider list for NEI Global Relocation. Currently we don t have a department and RELO deals will be referred just like regular deals 21. How many listings does the office have?
7 Right now I have 6 What is the normal amount? 6-10 today, the goal is 20+ How many is that per full time agent? 4 What is the average list price of the listings? About $450k What is the average sales price of the office? About $350k What percentage of listings are sold in house? 20% 22. Regarding market share, compared to the top 10 companies in this area, what number is this office? We are not on the scale yet as an office. As an individual agent, I m usually pretty high up there. What are your expectations of me? I expect you to be the best you can be! I expect you to selflessly serve the client and work to become an expert at your craft. 23. What is the average income per year of full time agents in this office? $80k+ 24. Explain the advantages or disadvantages of an independent versus a franchise, or multiple office real estate company? As a small broker, we are responsive to the agents and can give them what they need to succeed. We are more agile than the large firms and can adapt our marketing immediately to changing conditions. Franchise brokers offer nationwide advertising in print and media, which we already know doesn t work, but you get to pay for it. At the end of the day, selling real estate is about the relationship you are or are not able to build with your client. Nobody ever listed with me because of my broker, whether it was Keller Williams or my own name. They listed with me because they were confident I was the best agent for the job and I ll show you exactly how to do the same. 25. Does this office have a focus on team work, or does each agent operate pretty well on their own? Right now I am running an ad for two full time agents and I want them to work with me as a team on broker generated leads. While we have a team focus, we also want each agent to grow and benefit from the better splits available on their own business. I am committed to helping you achieve your goals. 26. What is your definition of full versus part time agent? If you make 51% or more of your income from selling real estate, you are considered full time 27. Do you hire part time agents? If so, what do you expect from them?
8 I only hire part time agents if they are working towards becoming full time very soon. I expect them to be available and self-sufficient to fulfill their fiduciary duties to any clients they agree to represent. Part time agents may not receive company leads for exactly this reason. If I have to show your buyer for you because you re working, I expect a bigger split. 28. Do you have a commercial department? Not yet. I have sold commercial land and buildings only. We do not have a department for commercial leases, build to suit or other complicated commercial ventures. We are open to discussing it with any interested parties. Do you do property management? No, liability is too high and profit too low, unless you have hundreds of properties. If someone brought us a book of business, we would consider it. Will I receive referral fees from a business I may refer to? We do not accept any affiliated business arrangements. In other words, no kickbacks from vendors. You may certainly accept referral fees for referring any commercial deal. Do you have in-house loan offices? No, but we do have a short list of high quality, preferred lenders 29. 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? 1. You get to keep 100% of seller paid, agent bonuses 30. What is the policy on referral fees I receive from sending outgoing referrals? Is it split with the company? If so, at what split? Yes, at your normal split. 31. I understand I will be working 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, and other benefits. Does your company offer anything along these lines? Sadly our system is so broken, we are not able to offer any group coverage at this time. We would love to be able to do so at some point in the future. 32. Will I have a working partner?
9 It s not mandatory, but I believe every agent needs a partner so they can enjoy vacations, family time, holidays and quality of life. This is why I recruit 2 agents at a time. 33. What commission does your company charge a seller for selling a home? I like to collect what I call a full fee commission of 6%. We are not a discount brokerage. What commission do you charge for undeveloped land or lots? 1. Base commission is 6% on every deal. Small deals may have a minimum flat fee commission. Do I have the authority to list for less commission under certain circumstances? 1. Yes, you are an independent contractor. I personally give discounts to past clients, friends and family nobody else. If yes, what are those conditions? 1. If it s your lead, you can do what you choose, but you may not list below 4.5% without Broker approval. If it s a broker lead and not a past client, family member or friend, we fight HARD for 6%. Could I list it for more? 1. You can list for as much as you can convince the client you are worth. 34. Do you have weekly sales meetings and property tours? Not yet. What day, time, and how long do the meetings usually last? 1. My intention is to have monthly full staff meetings and breakout sessions as required for training, coaching and mentoring. Date, time and duration are flexible. Could I attend a sales meeting before I make a final commitment to come on board? 1. If one is available, absolutely. 35. What are your office goals? Do you have expansion, move of office, or growth in your immediate plans? 1. I like being virtual at this time, overhead is low and it keeps us very flexible as to what we advertise, where and when. My intention is to add two full time agents ASAP and grow to 20 agents in the next few years. Once we get to 10, we will hire an in house, full time admin. Once we get to 20 agents, one of those first 20 will become a manager and begin getting overrides, bonuses and responsibilities commensurate with the position. Then we will add the next 20 and repeat the process.
10 36. What special rewards could I expect if I become top producer of your company? Wouldn t that be a fun discussion! Airfare anywhere in the world? Big screen TV and sound system? 37. Will I be reimbursed for expenses of my initial classes/training? There are no expenses associated with any training 38. What is the business dress code for this office? I wear slacks, shined dress shoes and a golf shirt or button down most of the time. Sometimes I wear boots and jeans because I don t mind selling rural properties and this is Texas. But first, we are professional business people and need to look the part. If you went to an attorney and he was were wearing flip flops, had a ragged, dirty beard and mustard stained shorts, would you have any confidence in him? Neither would I. Look sharp and dress for success. That way it knows you are ready when it calls. Thanks for taking time to plow through this with me! Feel free to call me at if you have any questions. You may also me at travis@franklinbrokerage.com.
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