8 Things You Need to Know About How Real Estate Teams Work
When it comes to the real estate industry, many real estate agents choose to go the route of a team instead of working as a solo agent.
Joining a real estate team can be a great way for new real estate agents to grow their careers because they’ll have access to more resources, training, and support – which can help them learn the ropes and achieve their goals faster.
Before starting or joining a real estate team, it’s important that you understand how they work and what you can expect. Here are eight things you need to know about real estate teams.
What is a Real Estate Team?
A real estate team is a group of real estate agents who work together to help their clients buy or sell property. The team is led by a team leader who is responsible for the team’s overall performance. Each team member specializes in a different area of the real estate transaction, from marketing to transaction management.
How Does a Real Estate Team Work?
Real estate teams are a collaborative effort. Each team member has their own set of skills and knowledge, which comes together to provide the best possible service for clients. Every team member works together and supports each other, while either sharing clients or maintaining their own pipelines. Clients tend to notice the value of a larger team as they often receive more support and their needs are accommodated in full.
The team approach allows for a more comprehensive understanding of the client’s needs and provides a higher level of customer service. Clients appreciate the added value of working with a team and are more likely to refer the team to their friends and family.
At the core of all successful teams is a strong team leader. They are responsible for how the team operates and often act as a mentor or coach. The team leader sets the tone for the team and helps to ensure that everyone is on the same page.
They also play a vital role in communication, ensuring everyone understands the goals of the team and what needs to be done to achieve those goals. They also hold their team accountable for executing, providing top notch customer service and working collaboratively.
Without a strong team leader, it is very difficult for a team to function effectively. A good team leader will make sure that their team is able to work together efficiently and effectively and that everyone is able to contribute their best.
Common Real Estate Goals
Any successful team is built on a foundation of common goals and a shared sense of purpose; real estate teams are no different. The most successful real estate teams are those that have a clear and attainable goal that everyone is working toward.
Without this sense of purpose, team members will quickly become bogged down in the day-to-day details of running the business and lose sight of the bigger picture.
Achieving common real estate team goals requires clear communication, mutual respect, and a shared sense of purpose. Perhaps the most important aspect of teamwork is setting clear goals and establishing achievable benchmarks. Without a clear destination in mind, it can be difficult to stay motivated and work together effectively.
Once goals are set, it is also important to make sure that everyone is on the same page in terms of how they will be achieved. This may require regular check-ins and setting up a system of accountability. Finally, it is essential to cultivate a positive team culture where everyone feels respected and valued. By working toward these common goals, real estate teams can achieve great things.
Real Estate Team Commission Splits
Real estate teams set their commission splits differently depending on their team structure and overall earning potential.
If you join a real estate team with multiple agents, you have a better chance of selling more houses and earning more money.
At a flat-fee real estate brokerage such as Radius, the team leader pays a monthly fee to the brokerage and will also receive a percentage of the commission that the team member earns in return of their leadership and guidance. The team leader may also offer a lower commission split to their team members based upon previous experience and production.
The team leader’s percentage will typically be lower than the team member’s percentage, but this will vary depending on the team’s structure and commission split agreement.
Structures of a Real Estate Team
Real estate teams are structured based on the overall goals the team leader has set out to achieve.
The most common structure for a real estate team is the “agent-assisted” model. In this model, the team leader works with a small group of agents who help with the day-to-day tasks associated with running the team.
This allows the team leader to focus on more strategic tasks such as marketing and business development.
The “agent-assisted” model is the most common structure for real estate agents who are taking the first step in growing their team.
For many real estate agent team leaders, once their business reaches a particular point, they will start to grow their team by bringing on additional support, such as a buyers agent, a listing coordinator, an administrative assistant, and/or a marketing director.
The goal of adding this support is to free up the team leader’s time so they can focus on selling homes, growing the business, and supporting the success of all teammates.
Collaborating with Team Members
Achieving success in real estate requires a wide range of skills, from marketing and sales to finance and negotiation.
While it is possible for one person to possess all of these skills, it is more likely that a team will be able to provide a greater breadth of knowledge and experience.
Real estate teams are built on the idea of collaboration and teamwork. Collaboration allows team members to share ideas, pool resources, and division of labor.
By working together, team members are able to provide better service to clients and grow their business more effectively. When one team member succeeds, it benefits the whole team. This mutual support helps to create a positive feedback loop that makes everyone more successful.
In addition, collaboration can also help to build trust and rapport among team members, which can create a more positive work environment.
Coaching and Mentorship
Starting a career in real estate can be daunting. There’s a lot to learn, and the competition is fierce. Luckily, real estate teams can provide the support and guidance you need to succeed.
When you join a team, you’ll have access to experienced agents who can act as coaches or mentors. They can help you learn the ins and outs of the business, from market trends to negotiation strategies. In addition, they can provide valuable leads and referrals.
Whether you’re thinking about joining a team or considering starting a team, the coaching and mentorship that team members receive are vital to the success of the team.
In real estate, as in many businesses, it pays to work as a team. By pooling resources, real estate agent teams can reduce costs and increase revenue.
Some of the most common resources that teams share include:
- Office space
- Marketing materials and campaigns
- Leads and referrals
- Training and education
- Support staff
In addition, teams can leverage each other’s strengths to deliver better service to clients.
For example, a team with a wide range of skills and experience can offer more comprehensive service than a group of solo agents.
By sharing resources and knowledge, teams can help agents save money and time while providing top-notch service to clients.
Legal Considerations for a Real Estate Team
It’s important to keep in mind that there are many different regulations that apply when creating or working on teams. While every state may vary, there are some general regulations that real estate agents will want to look into before starting their team.
- If there are any words that cannot be used in their team name
- What advertising regulations must be followed
- Does the state require the team leader to have any specific qualifications
- What an unlicensed assistant can and cannot do
- Does your state allow for duel agency on a team, and what rules need to be followed
Real Estate Team Benefits
There’s a good reason why more than 26% of real estate professionals are discovering the value of joining a team, according to the National Association of Realtors. Here are just some of the reasons why joining a team may be the right choice for you:
When you join a team, you can delegate tasks and responsibilities to other members, freeing up your time to focus on your business goals. You’ll also feel comfortable taking a vacation knowing your team will support your clients while you are away.
Increased Business and Revenue
As a member of a team, you’ll have access to a wider range of resources and opportunities, which can help you grow your business. Lead generation systems, referrals and networking are often benefits of joining a team.
Professional Development & Support
Being part of a team gives you the chance to collaborate with other agents and get feedback and support when you need it. Teams offer mentorship programs and hands-on training opportunities that can help you sharpen your skills and improve your professional development.
When you work with a real estate team, you can provide your clients with a higher level of service and representation. Clients enjoy knowing they are not dependent on one single individual and feel more at ease with their home purchase or sale.
Joining a Real Estate Team
A real estate team can be a great way to grow your business and achieve common goals.
By collaborating with other agents, you can share resources, have access to coaching and mentorship, and earn more money through the team’s split.
If you’re looking to start or join a real estate team, Radius can help. We offer tools and resources that make it easy for agents to collaborate and manage their teams as well as identify a team that may be a good fit for a new agent.
Contact us today to learn more about how we can help you grow your business.