Your First Year in Real Estate, 3rd Edition

Chapter 1

Selecting the Right Company

Welcome to your new career in real estate! You have chosen what is for many people a very challenging and rewarding labor of love: selling real estate. The fact that you are here, reading this book, is a good sign: You are already looking for an edge, advantages, and knowledge that will help push you to the top of your profession. So let’s begin.

First Things First

It’s very easy to get swept away in the emotion and excitement of your new career, to have dollar signs in your eyes without thoroughly researching the facts. Although it is important to dive into your career headfirst, it is also essential to make sure both of your eyes are wide open. You need to research, learn, and prepare for your new profession because, ultimately, the company that you select to first “hang your license” with can make or break your career. As such, you must begin your new career before you get your license.

Licensing Training Programs

Many real estate companies offer licensing training programs. These programs will help you prepare for and pass your state and national licensing exams. Some of these firms teach you through classroom programs aimed at meeting the minimum requirements in your state, and often these classroom programs are augmented with videos,, workbooks, and other materials that you can study outside of the classroom. Many companies have created online curriculum with time recording features so you meet the prelicensing time requirements for your state.

In addition, many firms offer their own prelicensing programs at no cost to you; others will charge you a few dollars to attend. There are some that will pay for these programs and even the cost of the state and national exams. These firms usually will deduct these fees from your first commission check. If you are comfortable with a couple of offices, you might consider the one that is willing to invest in your career financially. Seeking out the best firm for you and talking with them will also help you begin networking within the real estate industry.

Selecting the Right Company for You

Choosing a job for yourself is easy, right? Find a company that is hiring, offer your services, agree on money, and it’s all done. If it were only that easy.

Truth is, there are scores of questions you need to ask both the firm and yourself. You must discover what the company can do for you, as well as how you will benefit the company. The situation should be mutually beneficial to you and your office. So what should you look for when searching for the best opportunity for you?

What Every Good Real Estate Company Has

When you sign on with a company, you become an extension of that organization. Before you ever meet a client, they will already have an opinion of your company, and that opinion will influence what your client thinks of you. Learning how to identify a company with a solid history and positive standing in the community is essential to cultivating business and developing your career. A good real estate company, one that will provide you with the resources to succeed, will have several qualities.

A Solid Reputation Is Essential

The reputation of the company is critical. Remember, you are an extension of the company you work for. Until you are able to build a clientele and a following of your own, you will be relying solely on the company’s reputation. A buyer or seller will have a positive or negative impression of your company based on its reputation before you ever work with them. That reputation will be based on the success of the company, such as the market share it has achieved and the number of homes it lists and sells annually. The company’s involvement with the community is also important.

A Passion About Customer Service Is a Must

A company’s customer service model and service reputation are also important factors. Real estate sales is a service-oriented business where one is paid for results. To be successful, real estate agents must be customer-focused while carefully monitoring time and revenue invested to complete the job. First, you must be committed to providing outstanding customer service. Second, the company you select to work with must share your passion for customer service and must be committed to helping you achieve the level of customer service required to be successful. How you treat your clients, past and present, has a direct bearing on getting listing contracts from a seller and getting that home sold and closed, which is every agent’s desired result. Similarly, your ability to secure your representation of the buyer, find them a home, and close the deal is dependent on your level of customer service.

The company you select to work with must share your passion for customer service and must be committed to helping you achieve the level of customer service required to be successful.

There Is No Second Place

As a real estate agent, you are assuming a big risk by putting in a lot of time, effort, and even money in hopes of achieving a sale. There will be times when you work extremely hard for your client, but the home never sells or your client never makes a purchase. The recent settlement in the Burnett v. National Association of Realtors requires buyers to sign a buyer’s agency contract before they can be shown a home. You might be able to secure a signature on the agreement, but the buyer might change her mind to even buy. They might ask to void the contract or go to a builder directly and not tell you they bought without your services. Real estate agents get compensated for only the final result. Unlike horse racing, where they pay for Win, Place, and Show—first, second, and third—in real estate you get paid only when the house sells or closes. There is no second place, so you and the company you choose must be results-oriented. And good results are a product of good customer service.

Strong Listing Companies Help a New Agent

Make sure any companies you are considering are strong listing companies. Working for a strong listing company ensures you will have an opportunity to work with a lot of buyers. Most new agents work with more buyers than sellers. Buyers are easier to attract and create relationships with. They are not entrusting their largest asset, their home, to a new agent.

A listing is a contract with a seller to exclusively represent them in selling a home. If an agent acquires a listing, prices the home appropriately, and sells the house, then the agent will get paid. A strong listing office can dramatically help an agent early in their career. When agents and offices have an abundance of listings, they also receive a high volume of internet inquiries about their listings, some calls from signs as well as opportunities to host open houses. These inquiries about the listed properties lead to buyers and often sellers. The recent settlement of the Burnett v. NAR case does not require an open house attendee to sign a buyer’s agency contract before viewing the home. It further exempts a listing agent from securing a buyer’s agency contract before showing the home to a buyer. We have seen an increase in open house traffic and direct inquiries to listing agents since the settlement. It’s still early but the antidotal evidence points to a portion of the buyers preferring to see property without the obligation to sign a buyer’s agency agreement. I believe that trend will continue for a portion of the buyers. Being at a brokerage that has a large listing inventory creates even more of an advantage for a new agent post-settlement.

There is an old saying in real estate: “You list, you last.” The most successful and productive agents are those who focus on listing property, for a regular diet of new listings is the engine that drives the train. To be truly financially successful in real estate sales without having to work all hours of the day and night and on weekends, becoming a strong listing agent is imperative. Aligning with a company that has a large inventory of homes for sale will dramatically help you create success early in your career.

Researching a Company

Once you have determined that a company has a solid reputation, has an effective customer service model, and is a strong listing company, you must research the company and find out the answers to some important questions. The right answers will help you know whether a company is right for you, while the wrong answers will help steer you away to search for a better match.

Seek Out Market Share Information

First, you should inquire about market statistics. Find out the company’s market share, how many listings it takes in a year, how many listings sell, how many fail to sell, and how many sales it actually makes. These are numbers, statistics, and statistics don’t lie. This information will give you the bottom line about a company and will reflect on its customer service, position in the market, and the potential for success on your part.

Check with the Local Board of Realtors

You will want to research the company at your local Board of Realtors. The local board may have market share and other statistics for the company you are interviewing. It is critically important that you check with a third-party resource and verify the statistics that a company provides. Authenticate the figures and make sure the numbers all add up.