Should I hire my brother-in-law as my agent?

Question

My brother-in-law has been a Realtor for around 2 years and sold / bought ~5 homes. The family is 'kinda' pushing my wife & I to hire him because (1) he's cutting his commission (saving us money), (2) with a medium-large Realty, (3) needs the experience and (4) sales (helping out his family).

My reservations are: I don't want to mix family with business, his lack of experience (sales too).

We just feel bad if we don't hire him because not giving him a chance to prove himself. What's the best way to approach this without causing a rift? Thanks, BP!

Joe Dijamco · Answer

Thanks for suggestion. We interviewed several agents and reviewed their CMA proposals. They all have similar suggested price, and like you said: 'pick the price you feel is accurate' that's exactly what we're doing and looking at other factors.

Ariel Smith · Answer

@Joe Dijamco Does he have a mentor or someone who is helping him to learn the business? 5 homes in 2 years in your area (Vegas) would not be a living wage so he must have another form of income. Is he full time or part time?

These are the things I'd be wondering instead of him simply being inexperienced. New agents can be great if they are under a mentor or a great broker that can provide support and guidance with the transaction. You hiring him could give him a leg up to help jumpstart his career.

On the flip side, if he is a part time agent or doesn't have a mentor to lean on when things get tough or inevitably come up, then you are doing yourself a disservice to hire him. You should go with a more experienced agent if that is the case. It could literally cost you thousands to hire him.

Jorge Contreras · Answer

Best way I found to work with family in business is to treat them as someone you would in any business situation. For one I would not accept the pay cut from him instead pay him full commission as if he was any other agent, but at the same time expect him to fulfill all the duties any other agent would do and hold him accountable to it.

As for the rest of the family tell them to not meddle in your business affairs, if you cannot make it clear to your family that this is a business for you then you will reap the mess it will become. Consider this if your truly going to make RE your business then you need to make this a decision based on the best outcome possible for your company and don't let your emotions get in the way of that.

Jorge

Ryan Huggins · Answer

Very good points Jorge.  That's why I suggested to make him apply like anyone else and to work for it.

Joe, "pricing to sell" often means the same as under pricing it.  Make sure you review the comps and pick the price you feel is accurate.  When you interview other agents, make sure to get their price to compare.

Ariel Smith · Answer

@Joe Dijamco Let us know how it goes! Best of luck!

Joe Dijamco · Answer

Great feedback and agreed! Thanks, sir!

Jorge Contreras · Answer

yeah you would be helping him jump start his career but you also need to understand that he will be learning on your dime and time. If he is committed then is shouldn't be an issue but if he begins slacking that can end up hurting your relationships and cost you money and wasted time.

All in all you know your in law and should be able to judge his character where as we can't as we don't know him so that added factor comes down to you, add that to all the post giving pros and cons and you should be able to decide. Either way let us know what you decide and how it turned out.

Joe Dijamco · Answer

He does have a mentor that offers support & guidance, but not sure if he's a great broker. Hiring him could give help his career--this has been the overall message in the family. He had a full-time job but he left early this year to focus on real estate. Thanks, Ariel!

Joe Dijamco · Answer

His plans are: in addition to the MLS, networking with other in house agents and external contacts (not sure how many he has though). If it's priced to sell (let's say low $300k or at 299,999), see an offer within 30~45 days but some are selling quicker than others. He feels that we are doing him a favor by listing our property. Thanks, Jorge!

Jorge Contreras · Answer

The problem with saving some money with family is they also feel they can be lazy due to the fact they see it now as them doing you a favor instead of having a sense of responsibility they will be lazy unless you pay them full commission and hold them accountable to you as a client.

Also a good agent will not be content with just putting it on the MLS, they will seek ways to sell the property such as marketing, open houses, spreading the word to other agents. Rarely have I seen them relly on the buying agent to help them make the deal rather than make the deal themselves. What plans does your in law have in selling your property? How fast are properties in your area with similar conditions are selling for? Can your in law match it or best it?

Should I hire my brother-in-law as my agent?

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