Real estate is an ever-changing industry with various arrangements and work styles. Industry experts are questioning whether the future of real estate will be dominated by real estate teams or agents working solo. Recent trends and an independent national study indicate a rise in the popularity of real estate teams, and the likelihood of these teams continuing to work together is high.
Let’s dive deeper into the benefits of joining a real estate team versus having your own agency:
Why Real Estate Teams are Gaining Popularity
In the past, real estate agents had strongly indicated that they worked best when they worked alone. They found that selling themselves as an individual agent helped them better find clients and build their businesses.
However, the industry has experienced a substantial shift. An independent national study from Workman Success Systems states that 85% of real estate agents believe being on a team gives them a competitive advantage. Additionally, 77% of study respondents indicated they either had a “positive” or a “very positive” experience when participating in a real estate team. The popularity of these arrangements and their ability to help agents succeed present a strong case for them to continue moving forward.
Differences in Pays and Commissions
When you begin working as a real estate agent, you may find it difficult to find clients on your own which results in lower pay. However, working for a team provides the added benefit of having clients from the very first day. Also, real estate brokerages sometimes pay salaries over commissions, eliminating concerns about reliable income.
On the flip side, seasoned veterans may benefit from starting their own agency. This eliminates having to split commissions earned between real estate agents on a team.
How Teams Can Outperform a Solo Real Estate Agent
Most real estate teams are skilled agents pooled together to win more listings and close deals. However, working together isn’t always a breeze! Here are five essential characteristics your team should have to be at peak performance:
Trait #1 — Find Your Team’s Niche
The real estate industry might be broad and competitive, but it allows many opportunities to find a specialty market. Determine what sets your team apart from others and capitalize on that niche. For example, your team can only focus on luxury properties or second-home buyers. Once you figure out your differentiator, work it into your marketing strategy and branding.
Trait #2 — Have an Effective Marketing Strategy
Teams that excel also understand the importance of attracting and nurturing potential clients that fit into your targeted client persona. You want to know how to draw these people towards your team and real estate practice, present them with materials that speak to their specific needs, and nurture them, so they feel confident moving forward with your team working with them.
Trait #3 — Fine-tune Your Group Culture
You also want your team to have a strong group culture. It should not function as multiple individual agents calling themselves a team. Instead, you want to nurture coherence in how everyone works together. Encourage open communication among the team members and set an example of supporting other team members. Show empathy for the struggles of other members and offer advice when asked. Set common goals and celebrate those goals in a group manner. Help people let go of the individual mentality and focus on building the group outlook.
Trait #4 — Track Your Success
Data should play a critical role in your real estate team. It can help you track your improvement as a group and how different marketing and sales campaigns translate to closed sales. It also gives you an excellent pitch you can use when marketing your team, as you will quickly know the numbers related to your buying and selling success when speaking with prospects.
Trait #5 — Prioritize Making Real Connections
Gaining referrals play a critical role in the success of any real estate team. When people want to buy or sell a home, they turn to professionals they believe they can trust. Gaining referrals from past clients helps you capitalize on this trust and bring new clients to your business. Therefore, your team should focus on providing outstanding customer service. This means putting the customer first and ensuring they do not experience disruption.
Real Estate Team vs Solo: Which is Better for My Career?
As you aim to grow your career as a real estate agent, consider working with a team of skilled agents or being a part of a brokerage. As a new agent, you’ll win more listings and make more money by working on a team.
You can also join the 520,000 of real estate agents and brokers who have turned to Colibri Real Estate to learn the tricks of the trade through high quality real estate continuing education. Our state-approved real estate CE courses will improve your industry skills, boost your income, and hone your competitive edge. Start today!