Pros And Cons of Joining a Real Estate Team
July 21, 2022
Despite what many people believe, being a real estate agent is not an easy occupation to transition into. It’s a self-directed career that requires a lot of hustle, dedication, and networking in order to be successful. Being a real estate agent also requires a good understanding of your local real estate market and effective marketing skills.
While it’s certainly possible to be a successful real estate agent working independently, many agents find it comforting to work with other agents either at a brokerage or by joining a real estate team. So, how do real estate teams work and what are the pros and cons of joining one? In this blog post, we tell you everything an agent needs to know about joining a real estate team.
What is a Real Estate Team?
A real estate team is a group of two or more agents who split commissions and work together to represent home buyers and sellers. Typically, the real estate team collaborates for lead generation, managing listings, and for marketing efforts. Real estate teams can be organized in many ways but at large, they will have an agent leading the team.
How Do Real Estate Teams Work?
Many real estate teams have a leader who is responsible for listing properties and bringing in clients or potential buyers. In some cases, the team may assign specific roles to each member. The roles assigned depend on the goals of the team, the size of the team, and each agent’s strengths.
For example, one agent may specialize in working with buyers while another focuses on listing properties. There are many different considerations that go into how a real estate team works but here are a few of the most important
One of the most important aspects of how a real estate team works is the compensation split. A real estate team works together to buy or sell a house and splits the commission from the sale between them. The leader gets a larger percentage of the commission and the other members get a smaller percentage.
Teams can also be paid a salary or a percentage of the commission based on their performance in the sale. Sometimes, teams will use a combination of both split commission and salary to compensate their members. The team should make it clear how you will be compensated before you join so that there are no surprises later on.
Real Estate Teams May Need a Supervising Broker
Depending on the state, real estate agents are generally required to be supervised by a real estate broker. The same applies to real estate teams. The team must be supervised by a broker and in some states, the broker has to perform specific responsibilities for the team such as designating a team leader.
Teams Can Include Unlicensed Members
Not every member of a real estate team needs to be a licensed real estate agent. Some members can be unlicensed but they will have limited roles on the team. For example, an unlicensed member may be responsible for social media marketing but cannot negotiate a sale. Always check your state’s real estate laws to see what tasks unlicensed members are allowed to perform.
Real estate professionals are required by law to put their clients’ best interests ahead of anyone else’s. Whether the client is buying or selling, real estate agents must act in a fiduciary capacity and look out for their customer’s best interests. This is usually an easy task since real estate agents only represent one party in the transaction. However, it can become complicated when different members of a real estate team work with both the buyer and the seller.
There are state laws in place that allow for dual agency under certain circumstances but it’s important to know the laws in place regarding dual agency. Be sure to notify and get the approval of both the buyer and seller before moving forward with dual agency.
Pros And Cons of Joining a Real Estate Team
Being a real estate agent brings many challenges and opportunities. As you grow in your skills, it can be very beneficial to work closely with other agents on a team. On the other hand, many agents prefer to work alone on their own schedule. Here are the pros and cons of joining a real estate team.
Pros of Joining a Real Estate Team
1. Less Stress, More Support
From marketing to representing clients in negotiations, your job as a real estate agent can be a lot of pressure. Not only do you need to close deals to pay the bills but you also have to make sure that you are providing the best possible service to your clients.
While some people may be able to handle the many responsibilities of being an agent themselves, others are better off having a team to help share the load. On a real estate team, you will have other agents to bounce ideas off of, collaborate with on marketing campaigns, and help with paperwork. Typically, there is always a team member that has a wealth of real estate experience to lean on.
2. Great Way To Learn and Grow as a Real Estate Professional
Learning from your peers is one of the best ways to develop your skills professionally. If you are a beginner real estate agent, team members can provide incredibly valuable mentorship and guidance.
There is a lot of hands-on learning that will take place on a real estate team and you will be able to see how different agents approach various situations. Even if you aren’t a new agent, working with other agents can help you learn about new technologies, marketing strategies, and negotiation techniques.
3. Generating Leads Will Be Easier
By and large, real estate agents are in the business of generating leads. Experienced agents will have established methods for generating leads and they will use them for the team and themselves. If you join an experienced team, you will have the opportunity to learn from them and potentially observe the methods to get some leads of your own.
4. Fewer Expenses as a Member
Being on a real estate team means that you get more resources, a potential support staff, and marketing assistance without having the fees for such services coming all out of your pocket. There are certain overhead costs associated with being a real estate agent that can be reduced by being on a team. For example, lead generation tactics are a constant costly but necessary expense.
5. Better Service To Clients
Instead of a client relying on one agent to have the experience and skills necessary to get them the best deal possible, they will have an entire team of agents at their disposal. The amount of resources and support makes it simpler for real estate teams to organize and communicate. As a result, the level of customer satisfaction is often higher with a real estate team.
Cons of Joining a Real Estate Team
1. Get a Lower Commission Rate
While being on a real estate team can reduce the amount of expenses coming out of your pocket, it also means that you will have to split the commission with each team member. The lower earning potential can be offset by an increased number of closed deals but it is something to keep in mind.
2. You Answer To Others
Most of the time a real estate team will have a leader whom the members will check in with and answer to. This could be a con if you prefer to work independently and on your own terms. On top of that, team members have to work well together in order to be effective. When personalities clash amongst members, it can affect the success rate of the team.
An Alternative To Joining a Real Estate Team
If you are looking for more support when it comes to marketing and lead generation, then you may want to consider joining the Negotiator Recognized Program. The NRP program is for top real estate agents to distinguish themselves from the run-of-the-mill real estate professionals.
The Negotiators brand is associated with only agents who have proven themselves to go above and beyond for their clients while providing the highest quality of service.
NRPs also get support from a team of marketing experts and get access to resources for social media. One of the biggest benefits to joining the program is being featured in The Negotiators TV show which highlights the value for home buyers and sellers to work with a good real estate agent.
Nominate yourself or an agent you know for the Negotiator Recognized Partner program here.