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The #1 Question to Ask When Interviewing Real Estate Companies

By
Real Estate Broker/Owner with Sound Advantage Realty

The #1 Question to Ask When Interviewing Real Estate Companies; Due Diligence 101

When I decided to move to a different real estate company I decided to approach it as if I were purchasing a business. I directed my search towards those companies that were growing in a "down market", and those companies who were managing their money in a financially responsible manner. I had to ask only one question to determine whether each real estate company was a company I wanted to partner with.

When discussing this with my partner I said I would ask each company one important question. I wanted to see the companies Profit & Loss Statements for the past year. My partner laughed and said she had been in the real estate business for almost 30 years and has never heard of a real estate company that would show an agent their profit and loss statements. I shrugged my shoulders and said, "If I'm going to work with them, I have to see the Profit & Loss statements."

I figured there are only two reasons a Broker wouldn't show real estate agents their books. 1. They are broke.  Or 2. They are making far too much money from the agents and don't want us to see how much profit they are getting.

When I had my interview with the Team Leader from Keller Williams Realty Olympia I was amazed! I asked for the Profit & Loss Statements and they said, "No problem." Within minutes I had the profit & loss statements for my review. Keller Williams Realty Olympia was the first and only company that honored my request.

From my very first meeting with Keller Williams I considered it my job to educate myself regarding the operations of Keller Williams both locally and internationally. After much consideration I decided to call Keller Williams Realty Olympia the home of my Real Estate Team!

 It's refreshing to be with a Real Estate Company that has an "Open Book" policy. As a real estate professional with Keller Williams I am considered a partner. That is an awesome concept!

Kimberley Bauman (360) 481-3614

Lynda Eisenmann
Preferred Home Brokers - Brea, CA
Broker Associate ,CRS,GRI,SRES, Brea,CA, Orange Co

Hi Kimberly,

Not so sure I agree with you on this one. I've seen lots of brokerages that are profitable, yet not necessarily someone I would want to work with. Is the bottom line important, of course it is, yet I would not make that the sole criteria. And of course I wouldn't want to work for someone who about to close their doors.

BTW, as a broker-owner myself, I've had some profitable years, and some which were not. It's what you do through both cycles that adds to longevity in this business, especially through the goodtimes. Consistency has long been an issue for agents and brokerages alike. One year of P&L statement may not give you the whole picture.

With that said as long as you're happy in your new location, I hope everything works out as you planned.

Jan 21, 2008 04:55 AM
Kimberley Bauman
Sound Advantage Realty - Olympia, WA
Kim Bauman

Hi Lynda,

I'm sorry I wasn't clear in the Blog. Asking for the Profit & Loss Statements is just one question you should ask. It by no means is the only question you should ask. One of the paragraphs indicated that I "educated" myself  regarding the company. 

For the past several months I have been investigating companies in regards to how the operate and what they offer real estate agents. Once I decided which companies fit best with my needs I then interviewed. Asking for the P & L Statements is just one of the questions I ask. However, I felt most comfortable with the company that was up front, open and honest regarding all of their operations.

Thank you for responding Lynda.

 

 

Jan 22, 2008 04:26 AM