Are you considering building a team for your real estate business? What an exciting time! As popular as real estate teams have become, keep in mind, not all teams are created equal. Splits, support, guidance, and deal opportunities vary greatly. Before we dive into why an agent would want to build a team or why they shouldn’t, let’s review different types of real estate teams.
Here are some of the most common types of teams that exist:
- Employee/employer – Standard, requires no explanation.
- Leads assembly line – These types of teams are similar to a call center feel; Call this number, read this script, schedule the appointment, close the deal, and repeat.
- Leadership/coaching – Let’s work together while you master your skills.
- Locale or expansion – Have a specific agent to serve an area or type of property as a specialist
Why Would an Agent Want to Build a Team?
The easiest measure to decide if you should build (or join) a real estate team is assessing if you have enough volume to justify bringing on additional help. You don’t want to sacrifice new leads just to maintain the number of listings and transactions you have in progress. This is a great “problem” to have, but a sure sign you’re ready to call on those partnerships and get a team together.
Turning away leads is an obvious cry for help and not something that should ever happen in this business, so ideally you can avoid that by thoughtfully growing your team. Once you reach a point where you’re so buried in work that you don’t have time to generate new business, that’s the time to start. Don’t wait until you have to turn away new business or, worse, new business is leaving you because you’re not providing them the service they deserve.
Building a successful real estate business is no small feat. We know you can handle a lot but no one said you had to do it alone forever. Seriously, stop doing things you don’t like doing. That’s reason enough to grow, so is wanting to create a better experience for your clients and other vendors. Building a team is a bigger power move than trying to do it all alone.
Why Would an Agent Not Want to Build a Team?
On the other hand, being overwhelmed with incoming business may not be enough to lead a team. Real estate teams aren’t for every agent. Being a leader isn’t for everyone, either. Knowing your strengths and weaknesses as an entrepreneur is very important.
An alternative to building a team is hiring an assistant or taking on a mentee. Mentoring an agent for a short period of time could provide you the support you need and satisfy your desire to grow your business while making an impact on someone else.
Other reasons agents may choose not to build their own team is if they’re not working full time in real estate or their workload is still small enough that they can handle it on their own. There are other business models that are better suited for those types of agents.
What to Consider Prior to Starting a Real Estate Team
As you begin to grow, don’t lose sight of all the little things that helped fuel your growth from the beginning. If you think you’re ready to start building your own real estate team, here are my recommendations to get started.
- Know the type of culture and value proposition of your team.
- Grow gradually, have an onboarding process to keep consistency with each new team member.
- Always remember, you can’t be all things to all people.
Need Help Getting Started?
At Tru Realty, we pride ourselves in being an excellent resource for top-producing agents who are looking to start their own real estate team. As your brokerage, we’ll put together a business plan as well as a customized strategy for your new team. We’ll also help you with branding, systems, and other tools that help your team to be successful. Let’s set up a time to talk.
Asher Cohen is a licensed Realtor and Director of Sales at Tru Realty. He specializes in residential real estate in the greater Phoenix area. Asher and his team are committed to professional, reliable, and knowledgeable service to all of their clients—from first time home buyers to seasoned investors. He’s experienced in all facets of the market and takes great pride in listening to his clients’ needs to provide the best possible service.