Real estate agents have a primary role in running a brokerage. Whether it's an established firm or a new one, you need expert real estate agents for your firm’s growth. This article shares everything related to recruiting the best agents for your brokerage, be it new or established. Let's get started:
The Real Estate Recruiting Process - Explained
An expert team of employees is required for every business in any industry. Same is the case with real estate industry. You need the top 10% of the entire talent for your real estate brokerage to ensure its long-term success.
Wondering why to hire the top 10% talent? The brokerage relies on agents' work to build a healthy work environment, working on real estate sale and purchase cases and maintaining a steady stream of satisfied clients.
This is why the most experienced agents make four times more money than their newcomer counterparts. The top performing agents also have extensive knowledge and expertise to build a significant professional environment for smooth case closings, important referrals, and returning clients.
Without a team of expert agents, real estate brokerages would struggle to find and satisfy good clients consistently.
This is a complete guide on hiring the right real estate agents if you want long-term success for your brokerage. It also shares a step-by-step process for recruiting and retaining the top agents.
Real Estate Agents Recruitment is a continuous process.
Recruiting the best real estate agents is like closing a business deal and winning more clients. It heavily relies on a well-thought-out strategic process. You can't depend on commission splits, plans, and tiers for motivating your agents. Your brokerage must offer flexibility, mobility, and professional development opportunities to motivate top-performing agents.
In short, your recruiting strategy must fulfill the agent's expectations to attract the best real estate talent and then retain it for the brokerage on a long-term basis.
Recruit the Real Estate Agents before they Start the Job Hunting Process
Every real estate agency is searching for the best agents as they ensure guaranteed success. This means that the best real estate agents are hardly searching for a new opportunity.
However, most brokers don't prioritize the real estate agents' recruiting process to produce a funnel filled with the best leads.
In short, there is no right time to start the recruiting process for any real estate agent. You must start with the recruiting process without an end date in mind. This means hiring agents to work for a broker continuously and staying updated with the top talent when they switch to a new firm.
Please don't neglect the new real estate agents working at the competing brokerages, developing their name, skills, and network in the industry. You can reach out to them, form a professional relationship, and offer support, guidance, mentoring, and opportunity at better commission splits.
Invest consistently in Your Firm
Recruiting real estate agents becomes easier when your brokerage belongs to the leading group of agencies in the industry and doesn't come under the group of market- challengers.
Although there are benefits to being both a market- leader and a market challenger, being the market leader means having a recognizable brand, logo, and company name to attract top talent.
Those who are yet to establish their brand should look for marketing and advertising opportunities to spread their company's name and brand in the industry. Try investing in digital marketing campaigns such as Google PPC Ads, social media marketing, and search engine optimization (SEO) to increase brand exposure and traffic to your website. This would translate into gaining new clients and catching the attention of the area’s top real estate expert individuals and teams.
Check the offers of Other Brokers and Brokerages.
Most successful brokerages hire real estate agents continuously. This means they send them an offer before the agents begins their search process. There are two groups of job seekers: Active and Passive job seekers. The agents come under either of the two groups. Your brokerage must know the art of pitching and negotiating with an agent to turn them into potential prospects for the brokerage.
Job seekers mainly switch to better-paying jobs and companies. This means that the agents who aren't actively looking for a new brokerage are happy and making enough money. However, you can pitch to them with a better offer under similar work conditions to gain their attention. On the other hand, agents searching for a new brokerage seek a healthy work-life balance at a good offer. You can reach out to all such job seekers with unique offers such as working remotely from home or better work conditions to enhance their skills and income stream.
Diversify the Recruitment Process
Use social media marketing to increase your company’s reach for an active recruitment process. Many brokerages are already doing this as this is a great way to promote your real estate brand and services at an affordable price.
You can also use other digital marketing methods, such as paid ads on Google and YouTube. Don't forget to add SEO to your marketing strategy for building organic traffic on a consistent level. Last but not the least, have special offers for agents who refer and get a new agent signed up for your brokerage.
Most people love to work for a company that offers a comfortable and familiar working environment. This also holds true for the real estate industry. Organize webinars and property events to gain agents' attention. This would help you develop a professional network for active recruitment.
Share experiences of established agents about their path to success alongside expert tips from accountants on how to reduce taxes and increase your income to make the events interesting for the real estate agents. This would surely generate a stream of potential real estate agent leads.
If you can turn the first few events into success, you wouldn't start gaining the attention of more agents over time for all the other events without much work. These events would help build long-term relationships with the agents by sharing your company’s value and potential.
Tips for Retaining Top Talent
It is always cheaper to sustain your current employees than recruit new ones. This is not just cost-effective for your brokerage, but the agents would also help you acquire new agents in the long run at an affordable price.
Facilitate your working agents to play an active role in the recruitment process. Make them a part of the recruiting strategy to share their insights and tips. This would help you improve and improvise the recruiting process for successfully acquiring the best new talent in the industry.
Moreover, the top producers would help you share more success stories, growth, and achievements with the industry without paying them for the expensive marketing and advertising campaigns.
12 Steps to Recruit Real Estate Agents For Your Brokerage
1. Make the Transaction Process Simple
Top-tier agents are busy people. They love working with simple tools to operate as they don't have the time to learn complicated software. All the agents want to spend minimum time on operating tools such as broker transaction management software, CRM, intranet system, form tools, etc.
These agents don't want to waste their precious time entering long details into a system. They prefer using a system that lets them stay updated with the concerned information. They all love operating simple and easy-to-use tools compared to the complicated ones that require a learning curve and some professional training.
Pitching them an offer with similar work conditions and familiar tools would surely make them interested in accepting it. No agent would want to work with a firm where they would need to learn a completely new software and procedure in place of the ones that have made them successful.
2. Use Adaptable Technologies
As a real estate brokerage, you don't recruit just one agent but actively seek a team of top producers.
All the top real estate agents have their techniques and tools that have made them successful and added to their skillset. What most brokerages miss out on is the use of adaptive technologies. Most firms want the real estate agents to operate their tools and software. They also want all the leads to be collected under the company profile. This isn't the wisest of moves. Your brokerage must give them the flexibility to continue working according to their preferred way.
Some agents work with clients using a pen and paper instead of any tool. It is in the best of your brokerage’s interests to let them continue this way of working to support clients. Some other agents have a detailed list of leads and potential clients that they like to hold onto themselves. It would help to let them continue using the same tools to grab leads and clients.
The top brokerage firms understand that recruiting and supporting new agents is different from recruiting the top talent in the real estate industry.
This difference demands a flexible and adaptive system that can adjust according to each agent type and work requirements. The new real estate agents need mentoring, guidance, and monitoring. Working with them is separate and must not impact your working with the top agents.
The established agents don't want to invest time in learning advanced technologies and procedures in place of the system they are already using and familiar with.
3. Use Tools For Enhancing Your Agents' Productivity
Most real agents have a workflow that they rely on. However, some agents need tools to help enhance their productivity. For all such agents, make sure your brokerage has the simple and easy-to-operate tools that can help them enhance their output without consuming too much operational time.
For example, use an easy-to-learn transaction management system. This system would help the real estate agents to submit all the paperwork by email, upload, or scan. This way they would submit the documents to the brokerage regardless of who they are recruiting.
You can also rely on automated tools that make the submission process simple and automated. The system would automate the reminders related to the important transaction milestones such as approval, close date, and the loan approval date. You must also ensure that your system synchronizes with your agents’ work calendars.
4. Use Technology That is Compatible with Other Tools
In addition to using adaptable technologies, workflows, and automated tools to enhance agents' productivity, your brokerage must also offer technologies that work with other tools. Most brokerages are working with agents as independent contractors, which means that they can't be forced to use the company's tools.
Ensure that the transaction management system your firm uses allows the agents to use their tools and apps. Most real estate agents love tools offered by the state or their associate membership. Some prefer their own system to process forms and collect signatures.
Forcing them to use a tool they don't want can frustrate both the new and established real estate agents and mess up the situation.
5. Offer Insightful Reports When Needed
Most of the top real estate agents have a unique work style. However, one thing is common in their work requirements: the need for an insightful report on demand. You must allow the agents to check their production reports and work on deals that have critical documents missing or require immediate attention. Make it possible for the agents to find the client's contact details and the transaction information from the previous deals.
Also, make sure that the agents can view the reports and filter them according to their requirements. This would help save time going back and forth to the office or work with a third-party system to fetch the reports.
6. Make Income Statements Accessible in Real-Time.
Like brokers, agents also want fast and on-time access to their financial information. This helps to calculate and prepare for the tax at the year’s end. Use an automated system to generate monthly financial reports with details on the previous month and year-to-date information on the gross and net income earned from the commissions.
Furthermore, allow them to check their real estate information in real-time. This would help save time for all employees, including the top and new agents, and share a detailed and clear picture of their income.
7. Share Motivational Commission Offers.
Brokerages have a standard commission structure for working with agents. It is either a split or a flat fee. You must evaluate the commission structure and check if it is good enough for motivating your agent's performance.
For instance, higher than the usual commission splits or fees would encourage agents to work wholeheartedly in finding new clients as this would also add to their income.
For top agents, flat fees are a better payment structure; the agents would keep all the commission earned on every deal. But the flat fee is not suitable for new real estate agents as they are still learning ways to increase their production, and the fixed cost is best for those agents that guarantee deals.
8. Share Acquirable Incentives as Part of Commission Plan
One of the ways to recruit top agents is offering commission plans with additional incentives. This would add to their earnings. For example, some brokerages offer different splits on the lead. This motivates the agents.
Another way is to offer a commission cap to help the agent earn 100% of the entire commission, whether it's a split or a flat fee structure. This works well with the top agent teams as you offer the team lead a 100% share, while the other members earn by splitting the commission with the company.
9. Acknowledge Your Real Estate Agents’ Success
Recognizing the efforts poured in by the real estate agents is another way to make the agents feel valued. This adds to a healthy work culture. Share the work highlights on social media and at the annual events of the top producers. Give rewards for their enhanced productivity.
Have a similar strategy for the new real estate agents to keep them motivated as they continue to establish themselves while adding to the value of your brokerage in the industry.
You can also promote the deserving agents to a leadership role in the office and tell them to assist and mentor the new agents.
10. Go All Out in Supporting Your Agents
Becoming a successful real estate broker and a team is no doubt challenging. There is a lot of competition, and many competing agents have years of expertise and knowledge. Therefore to have a healthy work culture, make sure you support all your agents, new and experienced. This would motivate them.
Have frequent meetings to understand their concerns and needs. Help them encounter their challenges and improve their productivity.
Support and help add value to your company’s work environment and are great ways to increase word-of-mouth referrals. Last but not the least, offer technologies that enhance your agents' productivity.
11. Coach & Mentor Your Agents
Mentoring and coaching new agents is a great way to enhance their skills and expertise. However, some brokerages feel that expert real estate agents can do coaching rather than professional coaches. However, this is not necessarily true.
Great coaches are often professional companies instead of individuals working as part-time coaches. These companies offer valuable and effective services to agents, brokers, and teams. They motivate and develop a sense of accountability for all agents. However, coaching isn't cheap but is worth the investment.
12. Offer Team Opportunities
The best agents are very ambitious and are always planning their future. They don't want to work as an agent for their entire career. Most such agents have their eyes set on owning their brokerage team.
Agents leaving for another opportunity is undesirable for brokerages with owner-producers. This is because the leads are not shared, and the agents are always searching for new prospects.
You should still go all out in supporting your agents and their goals. Help them develop a team of top real estate agents that can take your brokerage to the next level.
Just like all the other employees, they can eventually leave. However, you can retain them by offering opportunities and prospects that never dry.
New and talented agents are always eager to work with brokerages that offer a healthy work-life balance and growth potential.