Does a correct answer exist here? Does saying no effect my shot at landing the job? I don't have any family in the industry, would they prefer that i did? I know I might be overthinking this but any input would be appreciated.
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They might ask for compliance reasons. Many deals in RE (and other areas) are based on relationships and there are certain key players within your industry. They might want to know whether you have a conflict of interest or incentives to deal / not deal with certain parties.
I did a compliance seminar once within IBD and had the exact same question within my field (.."do you have any family members or relatives in the industry you work in" or something like that).
Welcome to one of the most nepotistic industries in existence.
The correct answer is the honest answer. It shouldn't hurt you. They're just asking to see if they know your dad or grandfather. If they hated him, it would probably hurt you. If they liked him, it would help you, because employing you would be a business opportunity.
Honestly, probably my only reservation about moving into this industry. It seems like I have to network twice as hard, and even then they will probably just give the job to their nephew who is graduating in 1.5 years.
Possibly, but you should let that unfairness drive you, not dissuade you. Life is unfair - fight through it.
I’ve been asked this several times. I try to spin it to be positive (one of the pros of working in sales so far). My answer is: No, I am the only one in my family who is involved in real estate. I’ve reached out to everyone on my own and discovered how to learn things myself. I’ve taken extra classes and read extra books etc. I just spin it to talk about hard work and a lot of people will just talk to me about books and stuff like that. I try to make everything a conversation. It’s worked so far.
Agreed - also asked this question multiple times in interviews. My take is that it's more tied to what sparked your interest in real estate as a career path and you can spin a positive response with or without a family real estate connection.
This is how I've always viewed it. I do think lot's of brokerage shops ask the question because they want to use your family relationships for new business but generally a developer etc is just curious how you got into real estate, and there are a lot of ppl that have deep family backgrounds in the space.
It is because of nepotism, real estate is one of the last true "old boys clubs" and they want to know if you already have a connection to the industry that can benefit them.
Just answer honestly and then spin your passion for the industry into your answer.
Can be very frustrating for a "non old boy" as nepotism is prevalent in every corner of the industry.
If you have family connections, good, great, make sure to utilize them to get ahead.
If you do not, no biggie, your smarts and hustle will more than make up for it over time. Assuming you have those things.
To answer your questions: It might affect their final decision and; yes, they would rather you have family in the business. Very important for an "outsider" to come off polished and informed for these reasons.
The correct is answer is whatever the truth is. Even with your answer being "No" I wouldn't worry too much about it. Sometimes it can be fairly harmless because it is tough industry to break into with not much knowledge out there so interviewers sometimes want to know how you learned about the industry. In other cases it may be driven by business, more in the line of: "can you drum up any business for us from your mommy or daddy who is MD/Principal/VP at firm XYZ?" If you do find out that they hire someone based on that or the attitude of the interview focuses on it heavily, then let it be. The firm is likely to be mostly filled with employees who are related to so and so, or a favor being done for a client which doesn't mean the most competent or worthy individuals are working the job.
Just focus on your acquired knowledge and efforts to learn about the industry. Don't be discouraged, be motivated by this all like others have said.
Edit: I'd like to add there are still people who come from Real Estate families who are competent and handle the job well, but existing ties obviously got them there sooner. However, this isn't apply all.
Interviewer: "Any family in real estate?" You: "Have you ever heard of Sam Zell?" Interviewer: "Yes..." You: "No relation"
Maybe you get a chuckle and can move on.
You probably have a last name that sounds awfully familiar in industry circles.
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