theurbansquared

[theurbansquared]

Guide To Avoiding A Loser Brokerage

by James Hill | theurbansquared

Brokers can be bastards and some even get better at it while other brokers are legitimate life-changing business Sherpas

A broker is supposed to guide you through a career in real estate much like a coach or pimp - offering protection and how to understand a complicated system better and direct it to revenue  without getting your neck broke while playing the game. I created and ran the most well-reviewed, largest full-service brokerage in the fastest-growing city in America.  This gave me access to nearly ever broker and their broker's pay structure and innovations. I also got the agent's version of my same broker buddies brokerages when they eventually joined my brokerage; hovering anywhere from 20–60 agents. Trending insider chatter has blame going to real estate brokers of decades past (and current) and how they’ve managed their agents - - letting unsupervised  agents with no experience run wild on the streets practicing on the public wearing out Realtor love and making a need for all the Mountain Dew-made Zillow-y options that currently exist.

Brokers are out of touch more than ever with today’s current media load, having to understand and use social media platforms for their advertising (since the private Town & Country affair that real estate once was is forever over and the landscape is a bit more like a half Juggalo, half programmer flea market).

Let’s dive into some situations and tenets that most agents don’t consider when choosing a brokerage.

Sales Volume

This is a bit of negotiating psychology and due diligence. Simply ask how much sales they (the brokerage) did last year and how much they’re currently at. If they don’t know these numbers they’re goons. If they don’t give it, you guessed it - they’re hiding something; their lack of revenue. I’ve hired and fired hundreds of agents and in interviews so few ask this question but it’s one of the most important questions you can ask as an agent and you need the information. An agent that doesn’t ask this has already given a tell that they’re not a top producer since they’re not interested in the production capacity of the team they may join. No bueno. Creep the brokerage as well obvi -- reviews, FB & IG engagement and current running ads, and make sure the company Christmas Party isn’t catered by Chic-fil-a at a Burnet Road dive bar.

Office

40% of your learning and 350% of your work will be done at the office. Those numbers will make sense 90% of the time after a few years in real estate. The rest should be on the streets - your car, properties, driving 75 mph talking and sending out docs, gorging on breath mints. Office, home, tiny homes, motorhomes have all blended into one larger conversation where work/live ethos are all in re-definition.

But, when you do need a more savvy moment in any market when people talk about borrowing or selling something that’s over $100K they don’t want to hear some bullshit too loud pedantic conversation seated right next to them at Starbucks or the local kooky coffee shop. In real estate Murphy’s Law is always in effect. The super important listing sign off that has to go well and they want to hear you pitch again before deciding? There will be someone (at this super ‘caj’ coffee house meeting) there projectile vomiting, or throwing cats, or something else tiresome or bad that takes more calls.

Speech and body language are massive parts of sales so when the entire set is thrown because a barista is running through a whole Sublime album. You want the most inviting cool office you can ever pull off at any given moment in real estate . Was that ever a question? There's a balance  -- you can't afford that year one or three, but it’s called real estate for a reason. Sexy, exciting buildings is what the brochure said when I joined. Also, it’s about style not size.

If you haven’t lost business to coffee house back pressure you really haven’t failed at agency properly.

Social IQ

Social reach is the only conversation now. Many brokerages won’t make it as the lead generating aspects of the industry aren't powered by a private MLS anyone and the publicly-hated ‘Realtor’ designation have both brokers and agents guessing about tomorrow. Calendars, best practices and free shitty tips & templates are the du jour of the day for anyone trying to get an agent's eyes. You can Google and get all the ‘basic’ social media dance steps, but with everyone at the same happy hunting spot, you’re being covered up, which leaves all your new artistic efforts fruitless and also squandering winning time.

Traffic, leads and engagement are all separate areas that have to be fulfilled properly and even this is in flux with historic corporations and current start ups all on the same advertising playing field. Social reach and engagement is about going to the consumer direct and becoming their friend with soft bribes -- free food, gifts, prizes (trips, events tickets) or industry work tools. The great news is, real estate has always been mostly consumer direct - start up a convoy at the grocery store (bar, church, meetup) and you’re in the car that weekend looking for houses with a new client. While you, your brokerage and the world are figuring out their exact social media mix, you need to make sure a brokerage isn’t lost on social media since many won’t be able to stay in business in the next few short years. Your brokerage needs to have a plan and and at best some presence on social media. Plus, they should be running low-cost performative marketing ad campaigns to get a feel for what and if set user groups are responding to ads. Anyone can post on IG but people engage on IG when they become inspired. A brokerage should have some sort of inspiration and relationship tied in with the local allure of their city --  or heading that direction.

Mentoring

Much like a neurotic buyer chasing an interest rate for their home mortgage (and then never buying a house) agents too focused on commission may miss the essential career need for mentoring -- for their clients and career. I had a 5 deal minimum for my new agents before they were ever unsupervised and received more commission. I've had new agents with celeb clients in hand and celeb agents with no clients in hand. No one wants to do business with someone with absolutely has no, experience but they do it because they like you as a friend or fam. Your mentor is the person riding shotgun with you at the beginning of your career. On many levels you want to be this person since they embody the position and role. You're literally and figuratively are borrowing experience from them and they deserve to be paid for it. You always have to strengthen your brand outside of your brokerage but if you don’t have any experience your brand doesn’t have ‘strength’ you simply have a logo and a drag & drop website where you're possibly talking about yourself and love of unicorns or football shit but the big boat deals you dream about in bed aren’t gotten this way. Remember, no unicorn could ever throw a football good without a lot of practice and a good mentor.

Support

Support in a brokerage is really communication and solutions for small problems, and systems for managing bigger ones with people. Most of the annoying things in real estate happen outside of the deal - contracts, calls, emails, docs, signatures, more docs. You typically want a super admin, broker, or agent manager that you can call and they pick up the phone. It’s pretty simple. With a mentor, admin, or broker you’re going to have a n 8:30 PM question or deal that’s going down. You’ll need printer help. Real estate always happens now (this was one of the main mantras in my office). Printing, prequal, weekend support and constant post dinner shenanigans.

Training

Meet Frank Miller, David Mamet, the Sex Pistols, Tony Robbins, Wayne Dyer, Hendrix, Tom Hopkins, The World’s Greatest Detective and Conan The Barbarian. We had a lot of different inspirations for the style and ethos of our urban brokerage. The World’s Greatest Detective is Batman. It was a moniker that became popular in the seventies. We used this example about how important due diligence and proper Fact Finding techniques are for serving and closing deals for clients. (It’s almost essential to be inquisitive in real estate esp about property/development to have success). Training is largely your sales meeting(s). Although I don’t come from a car background I’ve mentored many car guys transferring to real estate (they typically are out of the industry within 2 years and are there only for boom markets). Car guys have meetings every morning 6 days a week and they’re not at 9 or 10 am. They’re already working.

free module: The Burger King Phenomena: Why Agents Do Less Working For Themselves Than If They Were Working At Burger King

Many brokerages have no training/meeting schedule (monthly doesn’t count -- that’s a meet and greet company pump and catch up meeting). If a brokerage doesn’t have training on a schedule then there is no training. You’ll possibly be thrown a 3-ring binder, or given some PDF’s, or links to old bizarre training videos or a soup sandwich of all three and sometimes even a bill for the training. An agent’s training/meetings and their attendance to them are the difference between an agent making it or not when you’re 24 months or less in the role as an agent especially in the fast turbulent waters of the current 2021 market where brokerage and agent purpose and pay are under attack. From my experience, new agents that hide die.

Media

Having a background as a creative director I’m aware with great detail of agency and brokerage media needs, the cost and time they extract, and the corresponding revenue they’re projected to bring back. Brokerages are looking for their purpose now as simply having a brokerage doesn’t bring in leads like it used to. This is fitting, since the digital dumbass brokers that that didn’t understand the importance of ‘the web’ rickshawed our MLS data and sold the agent/broker centric real estate system for their benefit while current agents are left with an empty greasy enough to-go box to curl up with. Brokerages were never media houses or ad agencies but now that consumer level graphic programs and website builders are ubiquitous and any agent after being licensed for 10 days can drag & drop a website up in 4 hours and make it look like a brokerage that’s been around for years. I know I’m going wide on the subject here but stay with me because this is the crux of where the industry and consumer are renegotiating roles.

A brokerage’s value proposition has changed drastically with the telecommute revolution that was only sped and strengthened by Covid. Also, generational knowledge base gaps in technology are more apparent than ever with technology as younger agents can often be more media savvy than their broker. The market is flooded with self appointed companies or gurus that are taking on the role of the classic ad agency (Mad Men) or media production house. Also beware of real estate coaches with little or no real estate experience offering to guide you in social media. Okay media can’t be used in apex situations (such as the luxury listings you’re after) and doesn’t draw apex listings. Beware of tapioca room temperature tips and general lists from companies that can appear informative but are really boilerplate low grade data to get your attention to ultimately upsell you on a paid service.

As an agent or a brokerage, consumer level graphic and website building programs can be a death ticket to your business as your competitors have the same tools and are cranking out the same type of style of messaging you are now. Now agents, principals, admins and in art class creating flyers. This has been done since the nineties as the valleys of dead agent careers is full of 2-day Microsoft Word (or any of their shitty office offerings) seshes to produce nasty flyers and presentations. These programs are fun and making bad flyers absolutely work related - the kind of work you don’t want’ related to your business because it’s adult crayon coloring. Activity does not equal production. Staying busy doing the wrong things doesn’t make money in real estate. Rather than spending agent winning time staying in the wrong lanes for way too long, get with a team or brokerage that are providing the most exceptional visual media you can find in your market. It used to be cool 2 years ago, now it’s the only thing that matters. Visual content.

free module: Better Agent Media, Less Agent Money (media tips and hacks).

Access

This is access to your broker. Brokers with families are typically less available. Your best bet as an agent is looking for a grinder broker who sleeps on the couch at their office. This person doesn’t have kids to build into so they’ll build into your career and you’ll get the most out of these brokers. Beware of cheesedick, apathetic, rich boy, bored brokers not around and more concerned with projects like a shitty vanity wine brand that their wife’s forced them to launch since she’s not living her best life anymore as an agent.

Style

What kind of style is your brokerage? Is there an opportunity to bring more style sophistication to the market -- standout in a smaller market? Or, are you in an ultra stylish market currently and butt hurt because you already have a little story about how you’re going to keep it real and be a Dockers wearing slob for eternity? The thing about style in agency is you always need to look like you can list a million dollar house. Oh, is it really that simple? Yes it is. You complicated it. Clients always care about their housing a little bit more than they care about your real estate career. They don’t have time to figure out why you’re wearing shoe styles from 7 years ago. Don’t make it hard for people to do business with you. If you’re ugly, even better. It can be a massive advantage. Everyone on the planet loves when someone who doesn’t fall into our general current ‘attractive’ spectrum doesn’t give af, looks great and puts themselves together in a stylish way that the viewer can understand (can I get away with Teen Wolf?). A great side benefit from this step in the right direction is it’s a great way to make someone who is conventionally attractive insecure.

You want to be in the same style as the people in your area but the secret is you need to lead that style pack if you can -- you always lead and dress apex. Years ago this was anecdotal but after over 100K hours in real estate a good suite (tailored) saved my ass and literally got me business. I listed the largest house in east Austin because of a suit (and got a front page story on the newspaper real estate section for free because the owner saw me walking into the next door neighbor’s house).

Offices, dress, logo, email signature are all elements of you and your brokerage’s style. Style in and of itself isn’t enough to be a top producer in real estate. I’ve had stylish and even celebrity agents that didn't do zilch, but style often is a fingerprint to something more.

Picking the right elements for your agent style is an art because you have to offer something from yourself that’s unique enough as well as something familiar (a bridge to your uniqueness). I have a background as a musician and also as a merchant sailor. Fortunately those are easy convo starters. You could be a philatelist and have some challenges, but regardless it absolutely will take a year or three to develop your own angle and style towards the market as you learn it and the agent role more.

Things that look attractive and familiar puts client’s psychologies at ease. So, if skinny jeans are in you better get in them (that’s like five years old now). You’re on stage. You don’t wear what the worker people behind the camera wear. If you want to wear boring shit get on the other side of the camera. If you want less leads saddle up to a forgettable brokerage. People have hard days. They want you to put an effort into your real estate agency role. Currently it’s a fried role so you’re dealing with that too. People love to be smiled at and sold and especially from someone who smells good. It doesn't ever get old. Don’t make them beg for your charm. Be a nice charming person with a shirt that fits good, it’s a powerful combo.

Get My Damn Paper

If you’ve never seen a werewolf in daylight mess with an agent’s commission after the deal’s done and funded. Admin? Who is the damn person who does the admin? (accounts payable is the icey pro word if you like). That person that you contact to get your commission check cut? If that person is a weirdo, or there’s an unfriendly or sketchy quality to the office or admin staff, do not go forward (don’t confuse this with new people or industry jitters). Grab some free coffee, leave the smarm and jet to the next brokerage blind date.

Software

CRM is an annoying conversation. Here’s the things with CRM’s - for all the work CRMs curtail, because of their complexity and existence and the work(time) they take to interact with you need to consider how much work you’re putting into operating the CRM software verses how much time it’s saving. Many times brokerages have expensive yearly subscriptions with per agent fees for their CRM which can make the brokerage have a zealot meth thing for the ‘team’ software and promise you can’t have a career without taking a bump too. To understand CRM better before it was a name, Client Relationship Management is what analog Proximity became. Let me explain -  being close to people in Church, bar, school, same building -- all give proximity. This becomes familiarity, then ease, then trust. People do business with people they trust & like. Once people disconnected physically and started using other means more contact attempts have to be made to work for or ‘prove’ worth.

Follow Up is a large component of most CRM’s and there are gobs of money for agents who follow up meticulously. Simply ask the broker what CRM they use and research it. Something to remember - unless you’re extremely busy with your career you don’t need a CRM. You can manage & database your clients & leads ‘by hand’ and strap it to the cloud with G-Suite/Google Sheets.

Brokerage Name

A small but important aside, if a brokerage have named themselves after a precious metal or a gem, or if it says elite in the name then it’s not elite. If it has the words prestige or worldwide or international it may not be any of those either. I know a handful of exceptions to this rule but this is a great dirty primer to use when choosing a brokerage that’s going to propel your career and have shrimp options at the Christmas Party.