During this changing real estate market many 100% commission companies have emerged, some good, some not so good. While looking for your next broker, you should ask each broker a series of questions......Here is a list of 8 questions that every agent MUST ask their future broker.

1. How long have you been in business? This is an extremely important question to ask all potential brokers. The change in the market has resulted in lower commission checks resulting from fewer sales and lower prices, many agents are now considering 100% commission companies. With this surge of agents considering these types of companies, a surge of high commission companies have also entered the market promoting themselves as the premier 100% Commission Company. When considering a company to affiliate with, it is recommended to only consider established companies with 5 or more years of experience with this type of business model.

2. Do you have an office? Most people would assume that all real estate companies have an office...WRONG!  Most 100% commission companies use a P.O. Box or a home address to keep costs down. Although keeping costs down is a major priority for many companies, an office is a MUST HAVE! It is recommended to only consider companies which have a physical office location. While agents are not often provided with desk space at 100% commission companies, it is imperative that the company have a physical office location for mail, drop off/pick up, and client interaction.

3. Are there any hidden fees? This is one of the most important questions to ask. Very few companies actually net the agent near 100% commission. This is the biggest scam in the real estate industry. Beware of hidden fees such as: file review, compliance, or incredibly high insurance rates.

4. What is the broker's experience level? Since a broker's license is relatively easy to obtain, this question is very important. When you are deep into a transaction and an issue arises, an experienced and knowledgeable broker is invaluable. Just because you are earning 100% commission does not mean you should sacrifice support and guidance. It is recommended to look for brokers who have sales experience and a minimum of 5 years experience, 7+ years would be ideal.

5. When is broker support available? As a real estate agent, ask yourself, do you ONLY work 9-5, Monday thru Friday? NO WAY, and neither should your broker! When considering a company, broker accessibility should be a major concern. All too often a broker at a 100% commission company only offers support Monday thru Friday. Real Estate is sold predominantly on nights and weekends as most clients have a job to attend during the day. If you have a question on Saturday at 6 pm, is there someone to call? Are you on your own every weekend? If so, where is the value in working for this broker?  Many agents think they are knowledgeable enough to not need much support. Be very careful in the company you select as after-hours support may be the difference between staying out of court and being slapped with a lawsuit.

6. Do you carry E&O Insurance and what is the cost to the agent? Doesn't every broker carry E&O Insurance? NO!!! There are companies that are "Self Insured" or have the "Deal with it when it happens" approach. The bottom line is E&O insurance is a must have in the real estate business. An agent is doing a disservice to their clients by not being adequately insured.

7. How many agents do you have? This is a questions that should give you many answers as to the level of support you should expect to receive and if the company is growing. 1 Broker/Office Manager should be able to manage 100 - 150 agents. If a company has 500+ agents and 1 broker/owner who handles all of the administrative and support duties as well, there is a good chance there will be extended response times to your inquiries. It is also recommended to only join those companies with 50 or more full time agents.

8. How many transactions has your company closed Year-To-Date? This is a very important question to gauge the quality of agents this company attracts. If a company has 500+ agents and only closes 50 deals per year, do you want to be a part of that? Many 100% commission offices take any licensed agent they can find, regardless of experience, lawsuits, closings, etc. It is recommended that an agent only consider a 100% commission company which employs quality agents, has a good closing to agent ratio, and does not have a license warehouse type approach to hiring agents.  Many of these companies charge a monthly fee to each agent and don’t care about closing Real Estate transactions.  It’s all about what they bring in monthly from fees.