Connect with us

Real Estate Brokerage

How do you know it’s time to become a broker?

(BROKERAGE) It sounds dreamy to open your own brokerage and be your own boss, but when is it TRULY time become a broker?

Published

on

time to be a broker

Everyone joins the real estate workforce for a different reason. Some to flip houses, others to represent buyers, and so forth. And most are happy with their broker of choice, but for others, the itch to become a broker becomes so great that it cannot be ignored.

But how do you know when it’s time to become a broker? Maybe it’s time for a new broker because you’re unhappy, but it’s also possible that you have the skills and drive to lead your own company.

To find out, we asked three brokers with thriving businesses:

Jennifer Archambeault is the Broker/Owner of Urban Provision, REALTORS®, a growing Texas brokerage.

We asked her how to know when it’s time to create your own brokerage:

It is time to create your own brokerage when the limitations of your current brokerage restricts your personal or professional growth, hinders your ability to serve your clientele at the highest level or you are no longer able to see the value your current broker brings to the table.

Regardless of the reason, it is important to be mindful of your competency and ability to handle the responsibilities involved with running a brokerage and/or managing or mentoring agents.

Is there a tipping point?

There are often many tipping points causing an agent/broker to dream about having their own brokerage, but they often only clue in on one when they are parting ways. A lack of respect or dissatisfaction within your current company, the inability to come to terms on differences with management, not seeing eye to eye on the company’s mission or vision and not being able to serve clients to the desired standard often top the list of tipping points if the agent leaves disgruntled.

However, there are times it is purely a natural transition having nothing to do with any reason mentioned above and solely taking your career and income to the next level.

Is it better to do so because of a gap in the market or because someone’s independent streak is unavoidable?

Personally, I think it is the latter more than the former. Gaps in the market will change over time but often the desire to be independent doesn’t ebb and flow as easily. If someone’s independent streak is unavoidable they often exude qualities that allow extreme focus to continuously keeping their eyes on a prize.

There are benefits of having your own brokerage, but there are also limitations as well. Some people’s independence can be a hindrance to their business especially when they want to start their own brokerage because they simply do not like or cannot continually follow the rules.

I believe it is better to part ways to build your own brokerage or brand because it satisfies a personal or professional growth need rather than leaving your previous company disgruntled. The latter generally allows for a flawed mindset.

What do you wish you had known before starting a brokerage?

Do not always focus on Plan A because often you’ll end up with the most perfect fit with Plan D.

Being nimble is a must-have quality for anyone in the real estate industry, but owning a brokerage often requires stretching far beyond being nimble and reaching for superhero status. Initially, I believed every agent could be molded into a specific model or a way of doing business but quickly realized that there is a not a one size fits all brokerage regardless of someone with decades of experience said so.

The perception of a brokerage with a large number of agents on the surface implies success. However, the old saying quality over quantity rings very true in a brokerage setting. Stop worrying about what others are doing – be different because that’s how you get noticed. Do what you do well and what works with your clients, for your personality or in your marketplace.

Tyler Forte, Co-Founder & CEO of Felix Homes saw a need to marry technology and real estate.

Here is his take on starting a brokerage:

Prior to starting Felix, I was a venture capital investor and I can tell you that any successful business, whether or not it’s a brokerage, is started because the status quo does not solve the market’s distinct needs.

Speaking specifically to why we started Felix, home sellers are facing a number of challenges that the traditional brokerage model does not address. When I sold my home last year, I saw firsthand how the home selling process is broken. I knew that starting a disruptive real estate brokerage was what I needed to do in order to make the experience of selling a home better.

The challenges homeowners currently face include hiring an agent who does not have their best interest in mind, to the uncertainty of not knowing if their home will be sold and for what price. At Felix, we are looking to provide consumers with the best home-selling experience period.

As far as the challenges we faced when starting a new brokerage, there are many. For one, the real estate industry is slow to adopt new innovative models. This is because current incumbents have built moats around the data and distribution of homes all at the consumer’s expense. In addition, because real estate is governed on a state-by-state basis, educating ourselves on the laws and regulations of each state was a challenge.

Jeff Brown, Owner of BawldGuy Investing has been a broker for decades and is never ever EVER shy about telling it like it is.

How do you know when it’s time to create your own brokerage?

I’ve always contended Dad was right, as you always thought most folks didn’t know when to create their own firm. Over the years I’ve spoken with countless brokerage owners about this very question.

Roughly a third of ‘em actually thought they knew the right time. Me? I did it WAY to soon, though in my defense, I had my dad’s infinite brokerage experience IN the office daily to back my rookie play, stop mistakes BEFORE I made ‘em, and generally mentor the crud outa me.

Most brokers told me they knew when decisions made by their broker bosses just were not what they would’ve done. They usually came a tipping point, where the decision made itself. But again, that was just a third of those with whom I talked. The rest just did what I did, rush in willy nilly. The huge advantage I had was a decades experienced brokerage owner mentoring me daily, in real time, and who, you know, actually gave a damn about me.

So what is that tipping point?

The most often heard tipping point was the feeling of being constrained by their boss’s operating policies. For example, and a gigantic tipping point, was a friend of mine who wanted to run his own office using the Broker-Centric model, not the Agent-Centric model run by the broker for whom he worked.

Is it better to do so because of a gap in the market or because someone’s independent streak is unavoidable?

The latter is merely personality. Sometimes it works to breakaway, and sometimes it’s been catastrophic. Being independent has nothing whatsoever to do with knowing what you’re doing as the person in charge.

The whole ‘gap in the market’ thing has always puzzled me as a reason to open a brokerage. The exception clearly would be that the policies of operation under which you’d run your own office would substantially improve your chances of taking advantage of whatever market gap you perceived. I find that to be uncommon, at least in my experience.

What do you wish you had known before starting a brokerage?

Without even a hint of maybe having a doubt, I wish I’d understood the good news/bad news joke that says: “Well, Jeff, the good news is you’re now the Go-To Guy. The bad news? See the good news.” 🙂

The difference between signing the backs of checks and the front of those checks cannot be overstated. Every single buck stops at your desk, period, end of sentence, over ’n out. Some folks find that to be too daunting.

This story was first published in May 2018.

Lani is the Chief Operating Officer at The Real Daily and sister news outlet, The American Genius, and has been named in the Inman 100 Most Influential Real Estate Leaders several times, co-authored a book, co-founded BASHH and Austin Digital Jobs, and is a seasoned business writer and editorialist with a penchant for the irreverent.

Real Estate Brokerage

Don’t let your clients fall into these homebuying regrets

(BROKERAGE) When helping clients buy a home, steer your buyers away from these potential dangers in order to avoid regrets.

Published

on

Man seated in trunk of car, head in hands as he feels homebuying regret. Avoid these with your clients.

Homebuyer’s remorse

A satisfied customer isn’t simply a buyer who has found the perfect home — it’s a customer who bought the perfect home, and still feels great about it a year later.

Buyer’s remorse is a real risk, especially on a large, expensive purchase like a home.

Not just a number

As a real estate agent, you can certainly pressure your customers to make a quick decision just to close the deal, but that’s not how you create lasting relationships or satisfied clients.

Instead, help buyers make the best decision they can so that they don’t have regrets later.

Tim Lemke at Wisebread has offered a list of the “Biggest Regrets of New Homeowners.” By examining what homeowners are most likely to regret after purchase, you can help your clients avoid find a home that they can be happy with for years to come.

Money regrets

According to Lemke, most post-purchase regrets arise when the buyer fails to budget or properly finance the purchase. This includes buying a home that is too expensive, making a down payment that is too small, setting up the wrong kind of mortgage, or making the purchase with a low credit score or while still in debt.

Help your client create a budget for the home that does not exceed 30 percent of the household’s gross income – and stick to it!

The budget should also factor in at least 20 percent of the cost as a down payment. If the down payment is too small, the available loans will be less than ideal, and the buyer will lose money on private mortgage insurance.

False hope regrets

You should also advise clients to avoid other common pitfalls that can leave homeowners dissatisfied. A fixer-upper is great if the client is handy, but if he or she doesn’t know how to do home repairs and renovations, they could easily end up with an unlivable property that will cause stress and require a lot of time and money to repair.

In order to avoid other unforeseen repairs, make sure your clients also get the house inspected so that they don’t end up with surprise problems.

Diligence regrets

Finally, encourage your clients to not only check out the house itself, but to research the surrounding area. Too often, buyers fall in love with a house, but end up regretting their choice of neighborhood.

Help your clients make the best decision they can – no regrets!

Continue Reading

Real Estate Brokerage

Safety concerns are top of mind for realtors, but what about our clients?

Seller safety is an overlooked topic that the industry should focus on to create an overall secure transaction for all, from meeting to closing.

Published

on

affordability home sales

There has been lots of advice recently about Realtor safety, but what about the home seller’s safety?

This area seems a little scant on advice, as a profession we probably owe more consideration to the sellers who pays for the food on our table. The appropriate moment to discuss safety with your new client is probably right after the listing is signed.

There are the points you should be covering with your seller:

Explain that you can’t protect valuables

If you’re planning on hosting an open house, remind them that you likely won’t be following every prospective buyer around the house. Unless you are insisting on visitors signing in or checking IDs, you also won’t know exactly who’s walking through the house either.

Unless you as the agent plan to be there for every showing, you’ll need to explain that you can’t protect their valuables.

Remove pharmaceuticals for every tour

Jewelry, laptops, iPads, personal mail, and especially pharmaceuticals are prime targets for thieves if not put away properly. Encourage your seller to remove prescription drugs from the home prior to every showing, or properly dispose of expired prescription drugs.

Mail may contain personal information and bank statements and are a risk from identity fraud. Explain that agents don’t want to be confronting someone taking these types of items from a home.

Put away knife blocks

Ask the seller to put away any knife blocks before showing. These may be a safety issue for any showing agent in the home.

With all those high-definition images of the home’s interior out there on every listing site, it’s like a robber’s take-out menu.  Suggest to your seller that they consider putting high-end stereos, flat-panel TVs, etc., in storage until they sell.

Surprising tip: remove pics of kids

If your client has photos of their wife, teenage daughter or children displayed, tactfully suggest that this might not be appropriate, if say a pedophile or stalker walked through their home.

seller safety tip

Tell sellers to not offer tours on their own

Even without a sign outside a property, the fact that the address is on every website in town is an open invitation (or an excuse) for someone to knock on the door and ask the sellers to “take a peek” inside. Explain that it’s not a good idea to let them in and that they should simply state “Please call my agent with any questions or to make an appointment”.

Explain Craigslist scams

With the growing rental fraud scams (listings are scraped by scammers who post bogus rental listings on Craigslist and other sites) potential renters could possibly be showing up at their doorsteps too, ready to move in

Check locks after tours

Discuss with them how to make their home burglarproof when it’s on the market and the need to check that a prospect has not deliberately left a door or window unlocked, so they can gain easy access later.

Recommend that if they don’t plan on returning directly home after a showing, they should ask a trusted neighbor to pop in, to make sure your doors were locked and the windows are secured.

Consider that there would actually be a whole lot less to worry about if we knew exactly who was looking at a home.

How are we protecting sellers?

So why are we letting any old Tom, Dick, or Harry look at homes in the first place? Why are we allowing unverified buyers into our seller’s homes?

Agents should consider counseling the seller to only allow verified prospects into their home.

The Des Moines Area Association of Realtors has already come up with an innovative seller contract, that states that no real estate agent is allowed to show the home to anyone the agent has not previously met and identified.

As a positive side effect, with this contract in place it allows agents to tell prospective buyers they have no choice but to first meet the agents in public because it is required by contract with the seller.

The other upside to this is respecting the seller’s time and effort in preparing for each showing.

After all, sellers are expected to keep up with tidiness and be ready for the next showing. I’m sure many sellers spend quite some time preparing for the next showing, then having to leave the house, sometimes with kids and animals in tow.

The cheat sheet for your sellers:

Here’s a shortened version of the suggested list of points you should discuss with a home seller:

  • Explain you can’t be there for every showing or be responsible for their valuables.
  • At open houses, you won’t be showing every visitor around the home.
  • Jewelry, money, laptops, cellphones,  gaming systems, and pharmaceuticals should all be stored away from plain view and out of the front of drawers.
  • Put high-end stereos, flat-panel TVs, etc., in storage until you sell.
  • Remove any knife blocks and mail on their kitchen countertops
  • Remove personal photos of your wives, teenage daughters, or children.
  • Never agree to let in a stranger knocking on the door.
  • Check doors and windows after each showing.

September is Realtor Safety Month

Consider making these recommendations your own personal standard. Ask your broker to incorporate these into their Broker Safety Policy (they have one, right?)

Talk to your local Realtor Association about the Des Moines Area Associations initiatives and how you can implement it.

(Disclosure – Peter Toner is founder of the safety app Verify Photo ID which verifies strange prospects photo IDs and checks against a National sex offenders list).

Continue Reading

Real Estate Brokerage

How to scout, secure, and supervise a team of true all-stars

(BROKERAGE) Building a team can be hard, especially building a team of all stars. Here are a few tips to make the process seamless.

Published

on

assertive broker meeting negotiation team

A good way to win? Play as a team. The best way to keep winning? Build an awesome team. There’s strength in numbers, even for the best broker — but that doesn’t mean you can just throw together a few qualified realtors and expect sales to double.

According to a recent survey by Bain & Company, the majority of senior executives form teams based on whoever is available rather than scouting the best talent for the job. Sure, the first method is easier, but it’s also 25% less productive.

As a broker, you can’t rely on your best guy to carry the firm’s success.

Realtors can come and go as they please.

If your best guy/gal decides to jump ship, they could leave your whole brokerage, for lack of a better word, screwed. You need all your guys to be your best guy. Keep these important tips in mind when building your real estate team.

Potential is great, but performance is what moves the needle. When interviewing candidates, seek out those who are not only experts, but who are also energetic, driven, and enjoy working in teams.

In most organizations, one in seven employees is a star.

When seven in seven are stars, productivity increases exponentially.

Everyone from your admin assistant to your coordinators to your agents should be passionate about their work and focused on success. All too often, firms hire “good enough” people in the interest of time, assuming things will come out in the wash thanks to one or two awesome agents.

But here’s the thing: a balanced team isn’t an all-star team.

It might stay afloat, but it won’t pick up speed.

Chances are the agents on your team know how good they are, and that means they also know their talents would be valued elsewhere — possibly with a competing broker. It’s your job to give them incentive to stay onboard.

Acknowledge achievements by awarding leadership roles to standout individuals so they know they’re a crucial part of the firm. Meet regularly with each team member to go over any issues or highlights they’ve experienced and identify any themes that may be emerging within the team as a whole.

Make encouraging and motivating one another an integral part of your team’s interactions.

They should be competing against themselves, not each other.

Make team performance a major determinant for compensation and promotion rather than strictly rewarding individual performance. This way the whole team will strive to help each other be at the top of their game every day. This also helps keep egos in check, which is necessary in all-star teams: when everyone’s the best at what they do, they’re bound to get a little cocky sometimes.

There’s no perfect formula for managing a real estate team. As you hire and train employees, keep your standards high and your mission focused.

Do this, and you won’t have to search for the best; the best will come to you.

Continue Reading
Advertisement

Our Partners

Get The Daily Intel
in your inbox

Subscribe and get news and EXCLUSIVE content to your email inbox!

Still Trending

Get The American Genius
in your inbox

subscribe and get news and exclusive content to your email inbox