According to a 2018 survey by the National Association of Realtors, 26% of agents are part of a real estate team. Real estate teams allow multiple professionals – both licensed brokers and unlicensed assistants – to join together and close more deals. Creating a real estate team has pros and cons, but many team leaders think it’s a worthwhile venture.
If you want to build a real estate team, where should you start? We’ve got four tips to help you determine if building your own real estate team is the right decision for your business.
About Real Estate Teams
At their core, real estate teams are groups of two or more individuals who work together to close real estate transactions. Each team looks different. It could mean two licensed agents who split up duties, share costs, and share commissions. It could be one lead agent with several supporting agents. Often, real estate teams also include unlicensed members like administrative assistants and marketing managers.
A rock star real estate team works like a well-oiled machine. Everyone has a different role to play, and at the end of the day, the goal is to share the workload and share the wealth.
Should I Build a Real Estate Team?
If you’ve been in the business a while, you’re probably hustling to close multiple deals a month. While a certain freedom comes with being a solo agent, there is also a limit to what one person can do. It’s simply not possible to build your business and increase your income if you’re already maxed out on your energy and time. Plus, keeping up this back-breaking pace will only lead to burnout if you’re not careful.
If business is good, and you’d like to decrease your task load while increasing your overall sales and potentially increase your earnings, you might want to build a real estate team.
Steps for Building a Rock Star Real Estate Team
When you’re ready to build a real estate team, plan ahead. Organization and thoughtful planning will help you create the team you need to help your business succeed.
1. Review Your Business Plan and Budget
First things first: you should only build a real estate team if you have enough listings and income to support team members. When you onboard team agents and assistants, you’ll be giving up part of your commission to that team. Of course, over time, more agents means more listings, which ultimately means more earnings for you, the team lead. However, if you’re not financially secure enough to go through a few lean months while building your team, now might not be the best time to start.
Next, you’ll need to review your business plan and create a budget for future expansion. Determine which roles you need, how you’ll pay for your growing team, and what you’ll do with the extra income you earn. A successful real estate team leader needs to have a clear-cut plan, both for the present and the future. Need some help getting started? Our friends at The Close have a great template here.
2. Decide Which Tools to Use
There are a myriad of real estate tools out there, from scheduling apps to mileage trackers to real estate website products. As the lead agent, it’s your job to decide which tools your team will use to stay organized and on track.
Not sure which tools will help you keep your team running smoothly? Check out our Real Estate Technology series for ideas.
3. Hire the Right Team Members
You’ve created your business plan and know which positions you need to fill. Now, you’ll need to find the right people for the job. If your goal is to increase sales while decreasing your overall workload (and we’re guessing it is!), then you’ll have to be strategic about whom you hire.
As the lead team member, you have the ultimate say in your team’s organization. However, there are several roles common when building a real estate team:
- Listing agent
- Buyer’s agent
- Transaction coordinator
- Office manager
- Marketing manager
You might choose to onboard just one or two of these positions until your business starts to grow.
4. Set Clear Expectations
Before you start the hiring process, decide how your team members will be compensated. Assistants and other non-licensed team members will likely receive a salary. But how will you split commissions with your other licensed agents? How will you divide your monthly costs, like brokerage fees, marketing costs, and operational expenses?
These compensation and expense-sharing expectations should be clear from the start. Communicate with every team member clearly before they sign a contract with you. Additionally, set your expectations for work hours and performance. A great team works best when everyone is on the same page.
Are you ready to build a real estate team? We want to hear about it! Share your comments, tips, and questions below.