Real Estate Teams, Are They Your Dream…. or Nightmare?
Teams are a growing trend according to the National Association of Realtors, as 26% of realtors belong to a team. Deciding whether or not to join a team or work solo is one of the most important decisions a new agent can make when starting their real estate career. Working as part of a team provides support while you develop your book of business, although it will require you forfeiting a portion of your commissions to your team. There are additional pros and cons to working on real estate teams which we explore below so you can determine if working on a team is the best decision for you.Team - Pros
When working on a team, some expenses will likely be paid for you. These can include MLS fees, association dues, marketing and many more. These expenses can quickly add up, especially if you are new to the business, so many new agents appreciate having a team to offset these fees.
One of the best parts of working on a team is the ability to focus on driving revenue while being able to delegate marketing tasks. For example, teams will often have support staff to take professional pictures of listings and design marketing materials like a website or brochure. Good pictures and appealing marketing materials are arguably necessary for being successful and often new agents are relieved to be able to focus on learning more about the transactional side of real estate instead of advertising.
Typically, real estate teams employ one or more lead generation sources. This means that you don’t have to invest in lead generation. Not only does this save you money, but this will also save you time as you will likely have a constant flow of leads that you can work.
Among the reasons agents most love working on teams is the ability to collaborate with your teammates. Have a challenging closing? Or need help convincing that homeowner to list now instead of next year? Call on your teammates or your team lead for help. Given they personally benefit from your success, teams are more intimately invested in your success so they are often happy to help you close deals.
Team - Cons
On a team, your commission splits are generally lower than what you would make on your own because you will have to share your earnings with your team members and any support staff your team employs.
Teams will have their own established branding. The agents on the team are typically unable to veer off that established branding. Additionally, your marketing will always have to include the team name and logo.
Working on a team means working with people - for better or worse. Teams are comprised of people with individual personalities, goals, strengths, and weaknesses. When you find the right team, you and your team members will compliment each other’s business styles and personalities. However, if you find yourself on a team whose culture you don’t vibe well with, this can result in petty conflicts over lead ownership and business practices. Additionally, on a team you will enjoy little to no autonomy. Any ideas you have for new lead generation sources or marketing techniques will have to align with the entire team. Otherwise, you typically will be restricted from implementing new ideas.
Teams can be a fantastic path towards growth and real estate business acumen. On the right team, your knowledge about marketing and closing deals will grow exponentially. However, by joining the wrong team, you risk derailing your career before it even starts. As with anything, do your research and due diligence and take pains not to rush into any arrangement. Why did you decide to work on a team or solo? Tell us in the comments below!