Many new Listing Agents and Buyer’s Agents are beginning their careers today with a mission to run their real estate business solo. Real estate teams are comprised of a real estate agent, assistant, and support staff. It’s a multi-person business.
Real estate teams are gaining in popularity. Many realtors have decided to team up with other professionals and form a real estate team. But what exactly is a real estate team? And more importantly, how will it help you succeed in the ultra-competitive land of realty?
Asking the right questions will help you determine if a real estate team is a good fit for you. Read on from this post for more information on real estate teams.
What Are Real Estate Teams?
Real estate teams are groups of brokers and agents who work together to provide services for clients. A team might be made up of agents from the same brokerage or different companies. The structure and goals of a real estate team vary, but most have at least one thing in common: They charge a fee to their clients for their services.
Advantages of Real Estate Teams
- Increased Business Leads
A big benefit of being on a real estate team is having access to more leads than you would if you were working alone. Who thinks has more buyers looking for homes: one agent or 50? I’ll bet it’s the latter! In addition, if you’re part of an established team, your business cards will be seen by hundreds of people every week as opposed to just a few.
- Better Quality Clients
Another benefit of joining a real estate team is that you will have access to more qualified clients than working alone. It’s much easier to find buyers when 50+ agents in your office all work.
- Marketing Support
Disadvantages of Real Estate Team
- A Real Estate Team is not a Licensed Brokerage.
This means that if you leave and take your clients with you, you are guilty of stealing clients from your former employer – even though it’s perfectly legal! It can be detrimental to your reputation in the long term if word gets out that you’re “the agency poacher.”
- Splitting Commissions.
While there are many ways to divide commissions, most involve splitting them into thirds, with two-thirds going to the company and one-third to the agent. It can be great for companies but not for agents who want to make as much money as possible.
- Longer Commute
Most independent agents work from home, but when you join a real estate team, you may end up having to travel longer distances between appointments if the team operates out of a typical office location.
Don’t make your decision on Real Estate Teams solely based on money. Each contractor has a different way of running their business, so don’t let the differences scare you off. If you are looking to save some money, have a slow time of year coming up, or just want to offload some stress, a team is probably worth considering.