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11 steps to train new brokers

Jul 25, 2016

books-training-416034-edited.jpegIf you have even one broker under your management, or would like to one day, you need to give some thought to training them.

An intentional onboarding plan is a research-proven way to improve retention. Training brokers and establishing expectations from the get-go sets them up for long-term success at the firmwhich in turn sets you up for success.

See this sample training curriculum for 11 detailed steps

Make sure not to overwhelm them with too much information all at once. Gradual training allows them to build on existing knowledge and absorb the most possible at each stage of their education.

To train new brokers, work through the whole process of prospecting to closing, step-by-step. Here’s a sample investment sales training curriculum that you can adapt for other specialties:

     1. Develop your database.

Whatever your technology, make sure new brokers understand each component and how they support the prospecting and deal management process. For example, each database entry should have this information:

  • An entry (address, photograph) for each property in the assigned market
  • Updated contact information for all owners
  • Relevant details about the property: size, square footage, unit mix, age, construction type
  • Relevant information about the owner

     2. Master the market.

Have brokers research their market—but tell them what to look for. Have them learn the answers to these questions, and then quiz them on it.

  • What were the features and prices of properties that have recently sold?
  • What properties are currently on the market?
  • Can you estimate current rents for different types of spaces?
  • What current construction projects are underway?
  • How do trends in household income and family formation impact real estate investments?
  • Why should clients buy, sell or hold?
  • How have prices changed over the last two years?

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     3. Prepare conversation starters for prospects.

Have brokers research their market—but tell them what to look for. Have them learn the answers to these questions, and then quiz them on it.

Teach brokers how to use market events and economic trends to initiate conversations with prospects that lead to further action. Make sure all topics:

  • Are current and likely to be news to a potential client
  • Are relevant to a prospect’s unique real estate needs and concerns
  • Relate to something an owner can actually do

     4. Make business development phone calls.

Walk them through your process for reaching out to prospects. The training agenda should follow these steps:

  • Introduction and credibility statement
  • Generate interest with one of prepared conversation starters
  • Ask an open-ended follow-up question
  • Listen for areas of opportunity
  • Turn that opportunity into a reason to meet, or establish a reason for the next call

     5. Conduct a first listing appointment.

Once they master the first part of prospect communication, they must establish an outline for a successful meeting. The sequence generally looks like this:

  1. Introduction and relationship-building.
  2. Ask about the client's needs and motivations to determine whether a proposal is warranted.
  3. Sell the proposal process as a solution to the client's needs.
  4. Gather operating information.
  5. Get a conditional commitment to list, then close and set the next appointment.

     6. Develop the proposal.

Help the broker get the necessary materials--rent roll, income and expense statement, comps, investment summary, etc--and show them how to conduct a systematic analysis to value the property. The proposal should include:

  • Proposed list and sales prices
  • Comparable sales that justify the price
  • Comparable on-market and under-contract properties
  • Comparable rents
  • Financial analysis
  • Local demographic information
  • Marketing plan
  • Broker bio

     7. Draft the representation agreements.

Make sure new brokers can answer client questions about each clause. There are dozens of questions they need to anticipate and have answers for, but here’s a sample of the most common:

  • What is a "deposit transfer?"
  • Who pays property taxes if a sale occurs mid-year?
  • Why is the arbitration clause advantageous to all participants?

    8. Conduct second listing appointment.

The goal of the second appointment is to secure a signed Exclusive Representation Agreement. The client needs to agree that selling will accomplish his or her objectives, your price is reasonable, the terms of the listing agreement are beneficial.

There are generally four phases of a second listing appointment:

  • Recap and progress report
  • Present the price and terms
  • Get feedback and structure the transaction
  • Gain the final agreement

    9. Market the property.

Walk through the standard marketing plan for a property, which usually includes these steps:

  • Work with Marketing Assistant to create a marketing package
  • Present the property in the office sales meeting and to individual agents
  • Distribute flyers, e-brochures and postcards
  • Contact potential buyers and advertise as needed
  • Send a status report letter to your seller every other week

    10. Draft and review offers and purchase agreements.

When you receive offers, qualify them before presenting them to the seller. This is usually followed by negotiations and counter offers.

     11. Manage the transaction and closing process.

This can fall to the agent or a lawyer depending on geographic region.

Want to get everyone on board with new technology? Visit apto.com/tech-train to view our infographic on training your team.

Topics: Efficiency

Elizabeth Knight

Written by Elizabeth Knight

Elizabeth is a Marketing Manager at Apto. She loves words, cheeseburgers, polo, and the facepunch emoji.

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