Establishing a Real Estate Team: Advantages and Disadvantages to Consider
In numerous real estate markets, the traditional method of operating as an individual real estate agent has been replaced by a more collaborative approach where teams work together to achieve their goals. If you’re unsure about partnering with a real estate team, it’s crucial to weigh the pros and cons ahead of time to avoid disappointing your team, clients, or yourself. Read on to learn whether or not should you establish a real estate team.
Pros of Working with a Real Estate Team
Working with a real estate team can be a great way to launch your career or to scale up from your current approach.
Help with Lead Generation
A number of teams benefit from having a competent team leader who receives regular referrals from satisfied clients and has a well-developed lead generation initiative. These leads are then assigned to team members who will handle them as the main point of contact for the client. For those who are new to the field or have had trouble generating leads, this approach can be advantageous, providing a more dependable revenue stream and facilitating business growth.
Professional Development
By working with your team lead and with your fellow team members, you’ll learn from already-successful agents. That kind of real-world, hands-on experience is sure to make you a better agent and gives you the opportunity to fill in the gaps in your own knowledge and practice.
Shared Support Staff
A number of teams opt to split the expenses of hiring support personnel such as assistants, transaction coordinators, or lead nurturers. This approach could be a cost-effective way to expand your business by leveraging others’ expertise and skills, as opposed to hiring your own staff.
Shared Resources
You can collaborate with your team lead and colleagues to split the expenses of various resources such as website development, content creation, graphics designing, branding, and events. This approach can help you execute marketing campaigns and strategies that might be beyond your financial ability as an individual.
Cons of Working with a Real Estate Team
As with any group working together, real estate teams can have their share of struggles. Here are some things to consider before you take the leap.
Group Identity
If you are looking to make a name for yourself in your market, you may have some trouble doing so on a team. Since the team’s identity is normally centered around the name recognition of the team lead. It may be harder to create your own professional identity and get noticed as an individual.
Lack of Brand Differentiation
If you’re working with a team that has a strong brand identity, it may make it harder for you to pursue your own interests. For instance, if your team’s focus is on in-town condos, building your own brand around luxury homes could pose a challenge. Therefore, it’s advisable to join a team that specializes in the real estate niche you’re interested in, so you can create a personal brand whenever you want to.
More Personalities
As the size of a group increases, so do the number of personalities that are part of it. Some of these personalities may be easy to get along with, while others may not be your preferred choice. To collaborate successfully with your team members, you must utilize your interpersonal skills to their fullest potential. This will enable you to work efficiently with them and achieve your objectives.
Smaller Commission Cut
As a member of a team, it’s important to keep in mind that your broker and team lead will receive a portion of your commission. This can result in a reduced cut for you. However, the upside is the possibility of working with a greater number of clients. This can offset the reduction in commission. To determine if joining a team is financially beneficial, it’s essential to calculate the potential additional commissions.
Are You Ready to Form Your Own Team?
If you already have a thriving real estate practice, and are looking for ways to add leverage to your business. Consider the following aspects of team leadership before deciding whether or not to launch your own real estate team:
- Do you have enough name recognition to support additional agents and staff?
- How will the team you take on help you branch out to new niches or new areas of your market?
- Do you have well-defined branding that you can transition into a team brand?
- Do you have a talent for managing others and helping them to develop their skills?
- Do your existing referral sources expect your undivided attention?
Whatever your decision, let it include both your short-term needs and long-term goals. Talk to a trusted mentor who has worked both individually and at the head to get their insights. Most of all, do an honest self-assessment to decide whether a team dynamic will work well for you.
