"Consult
The Coach" Archives
Stuart Kaufman, MS, MBA
“The Real Estate Coach”
Fall
2005 - Volume 5, Issue 3
Note: The first part of this question was answered
in the Summer, 2005 Washington Realtor News. In this
issue, the final part of this question is addressed.
Q.
Dear Coach:
I
have been a realtor for quite some time and I'm ready
to take it to the next level but find myself completely
unorganized. Last year I did about 15 transactions.
My Goal for this year is about 25, with the intent
to grow every year from there. At this
stage should I try to get organized on my own or should
I be looking for an assistant? I want to build
a strong team for the long term so I can get
myself more involved with meeting people and developing personal
relationships that produce results. Because
I'm a bit of a control freak, I'm thinking it would
be best to find an anchor office person to take charge
so I can stay completely out of his/her day to day.
But I am unsure on how to go about this. Should
my assistant(s) be licensed, not licensed? How
do you determine their salary and/or commissions?
If they should be licensed, do I pay for their licensing
and how do I keep them loyal to the team after
they become experienced agents themselves?
Signed,
At
a Road Block
Here
is a very brief recap from the Summer, 2005 column:
- Work
on getting better organized and managing your current
level of business more efficiently. Once you are
better organized, you can then better assess your
potential need for an assistant.
- Begin
identifying what work you want an assistant to help
you with. Also, what skills and experience should
your assistant possess? Write down your ideas.
- Determine
how prepared you are to manage an assistant. Not
everyone has the skills and experience to manage
others. Management skills are necessary to help
an assistant provide the services you want.
Now
let's move ahead:
A.
Dear At a Road Block:
Should
an assistant be licensed or unlicensed?
It
really depends on what you want your assistant to
do. For example, in Washington state, licensed
assistants can do everything a licensed Real
Estate agent can do. Unlicensed assistants, on the
other hand, cannot:
- Procure
prospects
- Show
properties, answer questions or interpret information
regarding property, price or condition
- Interpret
information regarding listings, titles, financing,
contracts, closings or other information related
to a closing.
- Conduct
phone canvassing to schedule appointments in order
to seek clients
- Fill
in legal forms or negotiate price/and or terms
To
view the complete guidelines for using unlicensed
assistants, in Washington State, go to: http://www.dol.wa.gov/realestate/reunlic.htm
.
Be
sure to check with your Broker before hiring an assistant
so that you fully understand the office policies for
using an assistant. Even if an agent hires an assistant,
the Broker is still fully responsible for all of their
actions. Many Brokers will not allow licensed assistants
to do the same things as an agent, even though State
law allows it.
So,
the decision to hire a licensed or unlicensed assistant
goes back to knowing what tasks you want your assistant
to help you with. If you are looking for someone to
take your place during vacations or to stand it for
you when you are working with other clients, then
you most likely will want a licensed assistant. On
the other hand, if you are looking for primarily administrative
support to help manage transactions, then an unlicensed
assistant may fit the bill nicely.
What
is the best way to compensate my Assistant?
The
short answer is to compensate them “fairly”. Ask your
broker what other agents are compensating their assistants.
This will give you a good feel of what your local
market pays. Licensed assistants are naturally compensated
at a higher rate than unlicensed assistants. Review
your finances so that you are confident that you can
comfortably afford to pay them. Financial reserves
are a must! By starting with a part-time assistant,
you will be minimizing your financial risk while determining
if you and your assistant are a good match. Many agents
hire their first assistants as independent agents
so that they do not have to deal with withholding
taxes. Here are a few basic compensation options:
- Hourly
rate – You set a fixed hourly rate. Generally,
you would start on the lower end ($10 -12/hour)
with room for growth as your unlicensed assistant
grows in their responsibilities and experience.
More experienced unlicensed agents are paid about
$15/hour. Hourly wages also gives you more flexibility
in terms of adjusting hours worked due to fluctuations
in your workload.
- Salary
– While this can work for part time or
full time assistants, it requires that you have
enough work to keep your assistant consistently
busy (and productive) to justify the ongoing salary.
This is a significant financial commitment.
- Bonuses
– Since you will be generating more business,
with the help of your assistant, you will want to
share some of your new business income with them.
A bonus can be based on a percentage (i.e. 5%) of
new business generated or a fixed amount ($300-$500)
per transaction. Again, your broker or an experienced
agent can be invaluable in terms of offering local
market specifics. In general, bonuses are awarded
for helping create or support incremental (additional)
business, not to maintain existing business.
Retaining
your Assistant
There
is obviously no way to prevent an assistant from “going
out on their own” (unless they are your husband, wife,
or partner and even then it can be a challenge!).
However, the best way to retain your assistant is
to treat them in a fair, respectful, and trustful
manner. This includes providing them clear direction
and expectations, giving them timely and constructive
feedback, and rewarding them for their efforts. Finally,
creating a fun, challenging and exciting environment
will keep your assistant around longer.
So,
if you consistently have 3-4 transactions per month,
have solid financial reserves, possess good management
skills, and want to spend more time talking to prospects
and members of your Sphere of Influence, and less
time doing paper work, then it is time for you to
look into hiring an assistant!
Recommended
Resources:
About
the Author:
Stuart Kaufman, MS, MBA, is a Real Estate Coach
who specializes in helping Real Estate agents be
more profitable while living a great life. He resides
in Washington State and is a regular contributor
to numerous Real Estate publications nationwide.
Got a question for the coach? Contact Stuart at
coach@stuartkaufman.com
or 206-725-1584.
©
Copyright 2005, Metamorphosis Coaching. All Rights
Reserved.
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