Are you nearing the point of burnout? Working all hours of the day and night? Struggling to keep up with your clients’ demands? Hitting a plateau, unable to take your real estate business to the next level? It might be time to consider building a real estate team.
Building a real estate team can help create success in your business. After a certain point, it’s impossible to upscale your business on your own. Hiring other agents to work on your team can not only make your work-life balance a little better but can also increase your earnings.
When to Consider Building a Real Estate Team
If you have more business than you can handle (thanks to the crazy real estate market that is 2021) or you’re looking to increase your annual sales, it might be time to consider building a real estate team.
Right now, homes are selling nearly as fast as they hit the market. Many real estate agents are frantically trying to list new properties, manage clients, tend to marketing strategies, and attend multiple closings a month. However, even in this market, you will eventually reach a plateau. There are only so many closings you can handle on your own. To break through that plateau, you need to hire assistants – and possibly build a real estate team.
One note here: if you are new to real estate, or you don’t yet have enough business to necessitate adding a team of agents, now might not be the time. Bringing on help too early in your career can cause unexpected headaches, so consider your workload, income, and expertise carefully before expanding your business.
Pros and Cons of a Real Estate Team
There are many benefits to creating a real estate team, but there are some drawbacks, too.
From a client standpoint, real estate teams offer a variety of options and nearly 24/7 communication. If the lead agent (you) isn’t available, a client can reach a member of your team instead. Because you’re all working together to close deals, every team member will be able to assist with nearly every deal. Moreover, clients can benefit from this wealth of experience and knowledge.
As an agent, you’ll benefit from building a real estate team in several ways. You’ll have more time to spend on the things that truly matter – like family, friends, and hobbies. Real estate teams often divide up specific tasks, like listing homes, showing homes to potential buyers, working on contracts, or attending closings. When you don’t have to do everything yourself, you’ll be amazed at the time you have on your hands. Secondly, though you will have to share your commission with your team members, many real estate teams can close more deals every month. That means you’ll end up earning nearly the same or more income as you did before – but without working 16-hour days.
Of course, there are always some drawbacks. Creating a real estate team can have challenges. For starters, bringing other agents into your fold doesn’t always go smoothly. You’ll have to navigate personality differences, and you’ll spend more time delegating and managing those on your team. If you’re not an effective manager, this aspect of being a team leader could be more trouble than it’s worth.
Finding Success with a Real Estate Team
Creating a successful real estate team takes time. First and foremost, examine your annual revenue and decide whether you can afford to bring on another agent. While compensation differs from one real estate team to the next, there will undoubtedly be significant financial considerations at play when creating a team. Your business should be financially secure before you decide to take on this challenge.
Secondly, being a successful team leader often starts with finding the right team. There are plenty of real estate agents in your area, but only a handful that share your vision and goals. Don’t be afraid to say “no” to agents who aren’t a great fit. Being choosy will pay off once you find that perfect match.
We could write an entire novel here about other ways to generate success with a real estate team, but we will save that for another time. Until then, check out this in-depth look at real estate team success from The Balance.
Hiring Unlicensed Assistants
If you’re not sure your business can afford to build a full-fledged real estate team – or if you only need help with more administrative roles like marketing and scheduling – you might consider hiring an unlicensed assistant instead. These assistants aren’t licensed to practice real estate, so they can’t help with any of the transaction-related duties, but they CAN help with many other tasks.
The difference here is compensation. Whereas licensed team members generally require a commission split with each deal, unlicensed assistants often work for a set salary. Therefore, it’s generally more cost-effective for small brokerages to hire unlicensed assistants.
It’s possible you might start with an unlicensed assistant and then create a real estate team as your business grows.
Are YOU part of a brokerage team? Tell us about your experience! How has it helped your business and/or your time management? Let us know in the comments below!