If you’re thinking of joining or starting a real estate team, this post is for you. I recently joined a real estate team and it’s been a great experience so far. Let me share with you what I’ve learned on how does a real estate team work so you can decide if it’s right for your career.
How Does a Real Estate Team Work?
Before we go into how does a real estate team work, let’s define what is a real estate team.
A real estate team typically consists of a group of real estate professionals who work together to help their clients buy or sell property.
The team may be composed of agents who specialize in different aspects of the real estate transaction, such as buyers’ agents, listing agents, and transaction coordinators.
The team may also include support staff, such as a marketing director or an office manager. The team works together to provide a comprehensive real estate service to their clients.
By working with a team, you’ll have access to more resources and knowledge than you would if you worked with a single agent. Plus, the team can share the workload, so you’ll have a better experience overall.
Real estate teams can be very helpful in providing the support that new agents need to get started in the business. Real estate teams also have the advantage of being able to share leads and resources, which can be a big help when it comes to generating business.
If you need assistance and your assigned agent is unavailable, don’t hesitate to reach out to any other member of the team.
While one real estate agent may handle the buyer’s side of the transaction, another may be responsible for escorting them on tour, hosting an open house, or drawing up a purchase offer. Yet another could be responsible for managing the financing or attending inspections.
Each role depends on the expertise of the agents and their duties can and usually do overlap with other roles.
New team members can benefit from having more experienced members on the team, as they can provide training and mentorship.
Do Real Estate Teams Earn Commission?
If you hire a team of agents, you do not pay extra commissions.
When you hire a real estate team, the commission is simply split among more people. This can be beneficial because it allows you to tap into the knowledge and skills of multiple team members.
In some cases, non-agent staff may be on salary while agents earn a percentage of each sale. Alternatively, commissions may be divided based on each team member’s role in the sale.
Here’s an overview of different possible commissions for real estate agents.
There are different ways to build successful real estate sales teams. Some start with a superstar, but he or she doesn’t have the time to do everything.
They are at a critical point in their growth and are unable to juggle the additional responsibility of managing their marketing efforts, including lead gen, database maintenance, and conducting open homes.
Many agents start by hiring a virtual assistant or administrative assistant to help with their day-to-day tasks. Then, they hire another full-time or part-time employee to handle a specific type of client.
Or, they may choose to hire a transaction coordinator to handle documents and input the listing on the MLS.
What Does The Team Leader Do?
The leader of a real estate team is the person who takes on the listing. The other members then help the listing agent with buyer clients.
In some teams, all members are actively encouraged to pursue new business, but more often than not, the team’s leader is the person who brings in most of the business.
Real estate agents rely on listings to sell homes.
A team is only as strong as its weakest link. A leader can’t possibly hold 10 different events at once without the help of their team. With a team of 5 or 6 people, they can cover 5 or 6 open houses in one afternoon.
Open houses are a great way to attract buyers and keep everyone busy.
How Team Leaders Earn Compensation
As a team leader, you may choose to compensate your members in various ways. For example, you could pay them a flat rate if they are salaried associates. Alternatively, you could give them a portion of your commission or base their pay on a performance-based percentage split.
Ultimately, it is up to you to decide how you want to compensate your team members.
The most common type of compensation for real estate teams is fixed commissions. With this type of payment, the split between the lead and the other team members stays constant.
On a team with two members, the member who brings in 60% of the sales gets 60% of the commissions, while the other 40% goes to their teammate.
All commission rates are up for negotiation.
Seller-Centric Real Estate Teams
Team leaders typically operate within a single agency, which means they only represent home sellers. This allows them to focus on getting the best possible outcome for their client, without having to worry about whether they’re also looking out for the buyer’s interests.
It doesn’t matter to most managers whether a buyer is brought in by one of their team members or an outside agent. Their only concern is selling the home for the sellers.
If you’re working as a real estate agent as part of a team of agents, then you should be aware of dual agencies. This is when one of your team members brings in a potential buyer just as if an agent from a different firm in the same market represented that potential buyer.
In these cases, your agent will need to protect your interests while also representing both parties fairly.
Pros and Cons of Real Estate Teams
A real estate agent can hire other real estate agents to work under them, but the client doesn’t have to pay more in commissions. The agent benefits from the collective knowledge and experience of the others on the team.
In an emergency, any member of the team can step in and cover another, and clients should never feel like they’re being ignored.
Working with a team of real estate agents means that you’ll be dealing with different people at each phase of the home buying or selling process.
Your agent might handle your listings, but someone else may handle the home viewings, and yet another person might be in charge of your open-house events.
Should Sellers and Buyers Use The Same Real Estate Team?
You won’t save any money by using an agent from the same company as the home seller, because the commission is paid by the buyer.
When shopping for a home, you should use your own agent to get the best deal possible. Your agent will be able to negotiate on your behalf and help you purchase the home.
Real Estate Team vs. Real Estate Partnership
Partnerships can be great, but it’s not always the case. Sometimes, agents in partnerships have different splits of commission.
A team consists of multiple real estate agents who all work with each other to serve clients.
A real estate partnership is a business relationship between two or multiple people involved in the real estate market.
How to Build a Real Estate Team
If you want to become a real estate agent, you need to develop a strong base of clientele. By nurturing these relationships, you can generate referrals. By growing your business, you can measure your precise progress.
If done right, you can track the exact growth of your company.
After being in the business for a while, those referrals from clients can become too much for one employee.
As the business grows, it may become necessary to hire an assistant to help manage daily tasks. If the number of clients becomes too much for one person to handle, the next step is to bring on a buyer’s agent.
Technologically-savvy real estate agents have perfected their art by making it easy for buyers to find homes online and by answering common questions.
As a result, many agents are now members of real estate teams. These teams allow agents to focus on their strengths, whether it be marketing, lead generation, or transaction management.
Real estate teams also provide support and camaraderie for agents, which can be helpful in an industry that is often solitary.
A great combination of UX and an educational approach to marketing has led to an influx of leads that are too much for one marketer to deal with.
Many real estate teams have found success by focusing their efforts on internet leads. This strategy has allowed them to expand their businesses at an accelerated rate.
The owner of the team typically spends a lot of time and money to get the business to where it’s generating new leads.
Part of your compensation is splitting the commissions with the agents who bring the buyer.
What Are The Roles of a Real Estate Team?
The roles of a real estate team can vary depending on the size and structure of the team. Generally, the larger the team, the more specialized the roles will be.
For example, on a small team, one agent may handle both buyers and sellers, while on a larger team there may be separate agents for each.
Other common roles on a real estate team include an administrator or office manager who handles paperwork and scheduling, a marketing coordinator who creates and implements marketing plans, and a transaction coordinator who manages the details of each transaction from start to finish.
Is it Better to Join a Real Estate Team or Fly Solo?
There is no easy answer when it comes to deciding whether it is better to join a real estate team or go solo. Both options have their own set of pros and cons that should be carefully considered before making a decision.
Some of the advantages of joining a real estate team include having access to more resources, being able to leverage the team’s collective experience, and potentially having a higher earning potential.
On the other hand, going solo gives you more control over your business, allows you to keep more of the commissions you earn, and can be less stressful overall.
Ultimately, the best option for you will depend on your unique circumstances and goals.
How does a real estate team work? In general, joining a real estate team can be a great way to jumpstart your career and learn from experienced professionals. Additionally, being part of a team can help you build important relationships and networks within the industry.