Since I've registered I thought i'd make use of my ability to post questions.

How do you other brokers handle hiring newly licensed agents you basically don't know from adam? I've got one that appears to be very bright...i've taken the time to do several informal sit down meetings for a couple of hours each to get to know this person. resume looks good, some experience, etc. but at the end of the day...i don't know this person at all. Obviously it is a point of potential liability but if properly trained i think this person would do well.

My brokerage has been a one man band for a while and extremely extremely successful in that mode. But, I've decided to take the next step and bring on a few agents...not looking for lots of them...just a few that want to build a quality team.

Thanks for any input!

Watermark,

That is a really hard issue. I often wish I had a crystal ball into which I could look and determine what an agent will be like in the future.

You can try and interview intensively. You can call references. I also use a very detailed questionnaire. But, some will still fool you.

A few example:

* The former insurance agent who had a substantial sphere of influence. Discovered a couple weeks in that he had just been convicted as a sex offender. That is why he was switching professions.

* The lady who was going through a divorce and was bound and determined to succeed. She didn't attend classes and didn't close a single transaction. Yet, she always complained about how things were run.

* The new licensee who interviewed well and had great references. Discovered after a couple months that he had no intent to do real estate. Just wanted to use the mls to find properties to invest in and then went directly to the seller's agent as a FSBO buyer.

* The agent who, again, interviewed well and seemed very bright and happy. Started off very productive. Quickly discovered that he was severely mentally ill and unbalanced.

* The meek and mild fellow who started off fairly aggressively. Found out later he threatened clients and finally assaulted one.

Don't get discouraged. Just understand that you need to monitor folks closely the first year. Give them one chance after they screw up. But, terminate -- quickly --- for a second serious offense.

Steve,
thanks for the input. It's times like this that I see the advantage of working as a partnership instead of a solo independent broker. It's good to have a place like this to talk with other brokers. I am good friends with brokers in my area but really..asking them stuff like this is essentially asking them to help their (friendly) competition succeed.
I really need to work on the process of interviewing agents. Right now it's been friends and friends of friends type of thing. I've become very well known in my area for being the expert on the type of properties i typically handle and i'm getting people wanting to come on board with me (I sell more of my specialized product type without any assistant or secretary or anything than other entire teams sell that focus on the same market with staff of 8-10 people). I have mixed thoughts about bringing on agents. No point in increasing volume without increasing profits otherwise all i've accomplished is increasing headaches! I've got 2 agents right now and really sorting through how "big" I want to get- I've been lately pretty much concluding i don't want to be "big" in the sense of # of people, etc.

Last employers should be a good source of whether the person is a good choice with good morals. New agents usually know mothing about real estate-thats what training is for. They can also be motivated to an extent. But if they are dishonest or have bad intent, it can ruin the brokers business beyond repair.

I would be very reluctant to give a bad reference for a former employee. They can turn around and seek damages.

I agree with Bigtoe... be very careful what you tell prospective employers who are asking you about references. We provide date "employment" started & ended and and that they were independent contractors. No other information is given. In fact, in the litigious society of today, the information we provide is based on fact, not on opinion. Try to stay away from opinion. It has a way of coming back and biting you in the .... well, you know.

take care,
sunshine shanon

I would think its case by case.

When I changed brokerages, I left a team. The broker asked that I find another broker or continue working on the team. I chose to left.

I met with a variety of brokers and had offers and rejections. Some wanted me, some did not. They had no idea whom I was, just my sales records. My leaving the brokerage was not pretty, but I settled in.

I needed a place to hang my license, and my broker took a chance. He came in on a Saturday morning to talk with me so I could wrap everything up by Monday morning. He took a gamble and won.

I would strongly suggest you get a credit report on any agent you hire.... if at all possible. You can tell alot about someone based on their credit history.

Watermark
I have been where you are it is hard to know when you have made the right choice. What I have done was make them mentor under me for a few transaction with reduce commissions on the first two or three deals The way I approach this when they finally make it through the test I let them know that they will be fiully trained by an expert in the business and then when they hit a level of expertise they will be able to be a mentor themsleves on people they bring into the business. In this situation you will be able to have an assistant and also pick up new business and at the sametime if you teach hom right and treat them right they will in most cases be your for a longtime. But remember this the average agent will change companies three time in their career before they settle down. If you would like to find out how you can get then into the business and stay with you email me at tim@timrobbinssr.com

A persons credit has little to do with how successful they will be as an agent. Today there are just too many situations that can adversly effect a persons credit rating including divorce, medical situations, loss of employment, a family emergency and the list goes on!

The last thing people need is someone else who wants to check their credit.

A Coldwell agent at the store where I work was one of my customers, and once she found out I was taking my licensing exam, she just chatted me up and handed me her card. So if you happen to have an engaging presence, it should be easy for them to feel comfortable with you, whatever the circumstances

A persons credit can tell you alot about how honest and ethical they may be in their business dealings..... I know... I've learned from experience after having funds embezzelled by an agent.

Sometimes a credit report can help; but in my case, it would have harmed my prospects. I recently went through a bankruptcy, due to medical bills. A report would have shown me in a bad light without any way to explain my situation to a prospective broker.
My suggestion is, talk to the agents and ask probing questions. You can find out how much experience they have; require them to tell you how much they sold last year and what type of issues they have had with their sales. You will figure out a pattern.

I have a friend who applied at a mortgage company, he had a recent bankruptcy, and had no job....they pulled his credit, they needless to say , it couldn't have been worse.....they hired him for his personallity , now he's the vice president...

No doubt about it, bad stuff can and does happen sometimes to good people.

To follow up on this thread, so far I have to say I am pretty happy with the agent I was considering taking on that resulted in me posting this thread. He's been with me a few weeks and already signed a $3.9m listing last week with a little bit of guidance on my part(he found the deal, I talked him through everything and did meet with him and the Seller one time- commercial strip center w/ a 10% cap) and looks like he's got another good one in the works that will be a great deal as long as price is reasonable. Lots of training but no doubt his drive and dedication and willingness to work hard.

A criminal history report is even more important than a credit report. Ususally, depending on the jurisdiction, you can obtain a report within 72 hours if you have the DOB and SSN of the hiree.Costs $1.50 [for copies] to $15, again depending on the jurisdiction. BUT, it is available under the open records act to anyone making the request.

commercial strip center w/ a 10% cap-fmls,gamls or loopnet number?

Super,
It's not in FMLS, loopnet, or costar yet. He just signed it up and just got some stuff he needed to put together a package on the property (survey, pictures, etc.). Package is almost ready to send out. Shoot me your email and I can send it to you. It's located in downtown Roswell.