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In a traditional real estate transaction, the buyer or seller will deal with one agent who sees them through the entire process from start to finish. In modern times, real estate teams are becoming a more common option.
Just as the name suggests, a real estate team involves a team of agents assisting with real estate sales as opposed to one agent. This type of approach is becoming more common as years go by. A 2018 survey conducted by the National Association of Realtors showed that 26% of agents are working in a team setting.
A team can work in any manner of ways. One agent may be responsible for open houses while another handles financial matters or all agents may be able to carry out duties as needed. The members represent a variety of levels of expertise. Often newer agents may join a team to learn the ropes and get experience in the industry.
In a traditional real estate transaction, the buyer or seller will deal with one agent who sees them through the entire process from start to finish. In modern times, real estate teams are becoming a more common option.
Just as the name suggests, a real estate team involves a team of agents assisting with real estate sales as opposed to one agent. This type of approach is becoming more common as years go by. A 2018 survey conducted by the National Association of Realtors showed that 26% of agents are working in a team setting.
A team can work in any manner of ways. One agent may be responsible for open houses while another handles financial matters or all agents may be able to carry out duties as needed. The members represent a variety of levels of expertise. Often newer agents may join a team to learn the ropes and get experience in the industry.
Teams can be compensated in a variety of ways. Members may be paid a flat rate salary, or they may receive a percentage split based on their performance. In some cases, a combination of salary and commission will be used.
A recent survey conducted by the National Association of Realtors shows that most real estate teams use a fixed commission split payment system. That means that there is a consistent split between the team leader and team members.
For example, in a three-person team, the leader may get a 60% commission off each sale with the members get 20% each.
Most real estate teams represent sellers. This means they won’t have a fiduciary responsibility to the buyer, and they won’t have to look out for them in the transaction.
This is ideal because agents must develop different skill sets based on whether they are representing buyers or sellers. If they specialize in representing sellers, they will have strong skill sets in that aspect of real estate making them qualified for the job.
The buyer may be brought in by the brokerage firm the team represents, or they may be brought in by another company. This won’t make much difference to the team. Their priority will be to represent the seller.
Dual agency may come into play if a team member brings in a buyer. Then the buyer must be concerned that the agent representing them may be working both sides. For example, the agent may be convincing their buyer to pay a high rate for the home so the team will bring in a higher commission.
Fortunately, there are laws in place which vary from state to state, but in most cases, both parties will have to agree to dual agency in writing. This will ensure that processes are carried out in an above-board manner.
Real estate teams come with their share of pros and cons and both the agents and sellers will see their share of advantages and disadvantages. Here are a few things to consider.
Realtors who join real estate teams benefit in the following ways:
Here are some disadvantages of working on a real estate team:
Agents have weighed in on the pros and cons of working on a real estate team and here’s what they had to say.
Morgan Hamer
Broker & Director of Operations
Blanq Real Estate Brokered by eXp Commercial
“As the Director of Operations for a rapidly Growing Commercial Real Estate Firm in Charlotte, NC, I can say with confidence that working as a team has played a critical role in my firm’s success. It creates mentoring opportunities for new agents and encourages a collaborative, creative work environment. New agents aid the senior brokers with their listings which allows the new agents to get a few big wins under their belt quickly to keep them motivated.”
Cameron Miller
CEO, Cameron Miller Real Estate
“Reaping all the profit alone as an independent agent could be rewarding, but the process is truly hard, yet joining a real estate team, the sacrifices, and the harvest could be well-balanced. You will also reap new skills, wider connections, and could gain more listing opportunities from the other members which are great for your growth as an agent and the team.
With the challenges faced, being in a team is an advantage because you will not have to face it alone, you have your team to help you stand and overcome those struggles. Lastly, you can enjoy your work because you have your team with you, we people love being with the community, and so with real estate.”
Richard Connelly
Real Estate Agent, Founder of Connelly Team
Connelly Team Real Estate
“Being part of a real estate team has many benefits when compared to operating as a solo agent. When you are part of a team, that in itself is a selling point Informing potential clients that they won’t only have a single agent working to sell their property or find them the perfect home, rather an entire team of agents is quite a competitive advantage.
In addition, having a team can help every individual agent close more deals. With a team, you have a support group that you can rely on. If you need someone to cover an open house or follow up on a lead, help is only a phone call away. This is all the more valuable as you grow as an agent and handle an increasing number of listings at the same time. Another important consideration is as your team grows, your network also grows exponentially. This has proven an invaluable asset in both finding buyers for certain properties and obtaining new listings from sellers.
Working on a real estate team also helps you grow as an individual agent. While working on a team, you are often times given the ability to work alongside agents who have more experience than you, or have a different skill set. Using the team environment as a learning experience and a way to better yourself is crucial to becoming the best agent you can be.”
Spenser Harvel
Licensed Realtor
Rachel Urso Real Estate
“Working for a real estate team can be very valuable for new agents getting their feet wet in the industry. When getting into real estate, there are a lot of expenses as a new agent (realtor fees, signs, printing, lox boxes, marketing materials). If you are an individual agent, you will likely be required for paying for all of those things yourself. On a team, most of the time they will have all of these things already taken care of for all of the agents. Also, it is very important for a new agent to have some type of mentorship. There is a lot to learn in real estate and a lot of the learning comes from hands-on experience. Most real estate teams will have mentorship opportunities for the newer agents, from the more experienced agents on the team.
One downside of a team is that you will give up more of your commission, which most of the time pays for all of the things they are providing.
Overall, it can be very valuable to join a team at the start of your real estate career. When the time is right, and you feel comfortable you can always venture out and create your own branding for the future.”
Cristina Edelstein-Skurat
Team Lead
Kerby & Cristina Real Estate Experts
“At Kerby and Cristina Real Estate Experts, we believe in doing business differently than most real estate agents for both our clients and our agents. Being in the real estate industry for over 13 years we have been consistently recognized as the #1 Remax Results Team in Minnesota and have served over 3,700 clients. It all starts with our team of expert agents who roll out the red carpet for each client no matter their price point, financial situation, etc. and truly listen to what it is that they need.
We provide them with a road map on how we can help them achieve their real estate goals. We pride ourselves in being industry leaders with our teams systems, training, and marketing. This has resulted in clients who work with us selling their homes for 3% more money and two times faster.
Our relationship doesn’t stop after the transaction is completed as we hold over 6+ client appreciation events annually to stay in touch and thank our clients for their continued support. We are their realtors for life. What does our team do for our clients that gets us raving reviews? We are proactive, truly care about them and are the experts they can trust with their biggest assets!”
Barry Jenkins“I started in the real estate industry when I was 18 and I’m 41 now, so I’ve seen a lot over my 20+ years in the industry. When the market crashed back in 2008 I waited for things to go back to “normal” and I was wrecked financially as a result. As we all know, things never went back to “normal”.
Fast forward to 2020 when the quarantine hit and everyone started freaking out about the market and what we were going to do I had a meeting with my agents and I told them that the last time a major issue hit our society I waited for things to go back to normal and I starved as a result. And because of that experience, this time around I would not wait for things to go back to the way that they were, but that I would immediately adapt and find a way to make things work in my current circumstance. This proved to be the right focus as we ended up selling 857 homes that year and were the number one team in the state of Virginia for the year 2020.”
Ryan O’Neill
Founder of The Minnesota Real Estate Team
RE/MAX Advantage Plus
“In deciding whether to be an individual agent or being part of a real estate team, there is not a “right or wrong choice” for an agent. However in recent years, teams with all of the various real estate brokerages have grown in popularity. Essentially, a team often provides an additional layer of training, support, lead generation, camaraderie/fun, showing help, etc. for an agent. Many agents on teams also enjoy leveraging the collective success of the team as a whole (as well as leveraging the various types of marketing that the team may do to help his or her clients.)
The lead generation efforts by the team can lead to more buyer and seller clients and closings for the agent. This of course can help the agent grow their overall business more quickly and efficiently. And though the Broker will offer some type of training, the additional training and support provided by the team to the team members can help agents learn and grow even further.
There is a cost to an agent to be part of a team of course. The team usually takes a percentage of the commission for their efforts overall. However, much like any Broker, it comes down to the value the agent experiences (and also the potential for the agent to sell more homes and make more net monies overall by being part of the team.) If the agent feels meaningful value in what the team is providing, they will most likely remain with the team over time.
I do expect both real estate teams to continue to flourish in our national real estate market. And there are so many wonderful and outstanding teams with all of the various real estate companies.”
People selling their homes also have advantages and disadvantages when working with real estate teams. Here are some things to consider.
Real estate teams can work well if you have a strong game plan and the right people on your side. Here are some things to think about if you are considering getting a team together.
Before getting your team together, think about your goals and how you are going to execute them. Here are some things you will want to focus on:
Let’s face it, not everyone is a team leader. But if you think you have what it takes, you may be ready to step up to the role.
Part of being a good team leader is knowing your team. Usually, members will fall into one of four personality types in accordance with the DISC assessment. The traits are as follows:
Once you figure out your team members’ personality traits, you will know how to work with them, and you will be able to determine what duties they should be assigned.
Your real estate team structure can follow a variety of models including the following:
Once you get a strong team together, continue to encourage them with positive reinforcement and plenty of motivation.
Real estate teams can help agents get ahead in the industry, but they are not for everyone. They have their shares of pros and cons and joining or starting one is not a decision to be taken lightly. Will you be moving in this direction in your career?
The Pros and Cons of Joining a Real Estate Team (agentadvice.com)
Kerby & Cristina Real Estate Experts | RE/MAX Results | 1143 South Shore Dr Plymouth, MN 55441 | 763-634-0073 | © 2023
Kerby & Cristina Real Estate Experts | RE/MAX Results | 1143 South Shore Dr Plymouth, MN 55441 | 612-812-9262 | © 2023
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