What should I check about the agents when buying a real estate brokerage?

A brokerage owns a brand, an office and some systems, but the income comes from its agents, and whether they can move depends on each agent’s agreement, which your lawyer can review. That is why agent diligence matters more here than in many businesses. You are buying the chance that the agents stay with you. The checks below help you see how likely that is and what you are relying on.

Who produces the income

Ask for production by agent over the past several years, without names at first if the owner prefers. Look for concentration. If a handful of agents or one team produce most of the income, their plans matter far more than the rest of the roster. Ask whether any of them are near retirement or have thought about opening their own office.

Agent agreements and notice

Read the agreements. Look at the fee or split terms, how an agent may leave, what notice is needed and what happens to deals in progress. Ask whether the agreements can be assigned to a buyer or need each agent’s consent. Your lawyer can tell you how those terms work and whether anything in them limits an agent’s freedom to leave.

Tenure and turnover

A roster that has been stable for years says something. So does steady churn. Ask who joined, who left and why. A recent departure of a top agent is worth a direct question to the owner.

Relationships, leads and teams

Ask who holds the client relationships and where leads come from. Leads from the brokerage’s own website or sign calls are different from an agent’s personal network. Some agents work in teams with their own rules, so ask how the team and the brokerage share income and who the team’s members answer to.