Real Estate Team Basics: How They Work & How To Build One
When individuals think about real estate brokers they imagine an individual who is a professional. Sometimes, this is the situation. Anyone can apply for an agent’s license to sell real estate and begin accepting clients, and often, they become successful. Explore any neighborhood and you’ll likely see a “for sale” sign with the name of a realtor and a photo prominently on display.
Many real estate agents choose to work in an organization. Teams are able to support one another and share workloads and each member of the team brings their own expertise into the mix. The idea of joining a team is the best way to increase the growth of your business, however, there are some disadvantages to keep in mind. Here’s everything you should learn regarding real estate team members, the way they operate, and how you can build one. Use an area calculator for easily land area calculation.
How Are Real Estate Teams Structured?
The term “real estate team” refers to one made up comprising at least two real estate professionals who share their expertise. The team members share their commissions and may assist their clients.
For instance, suppose you’re overbooked on Monday and your colleague Jenny is booked on Wednesday. Jenny might be able to take care of some of your appearances on Monday. Then, you can take over the show on Wednesday. Since you split commissions, everyone has a reason to be supportive of the entire team. The land area calculator is easy to use when it comes to calculating the area.
Different teams of real estate have different structures and there’s no one “right” way of doing things. When teams are larger, multiple agents may be assigned particular duties. For instance, one agent could be responsible for managing lenders, while another might be in charge of open houses, and another might be in charge of phone calls, etc. This lets team members be in roles that are on their own strengths which make the whole team more efficient.
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Real Estate Team Lead
In almost all instances the real estate company has a team leader. It’s usually the agent in charge of the listings, and other team members will interact with potential buyers. In certain teams the team members all create listings, however, the team leader still takes to the table the majority of the time.
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Real Estate Team Compensation
Teams will have their own pay structures. Certain teams operate more like traditional companies and pay their team members an annual salary. This is a risk for the team’s leader but if there is a decline in sales and the leader is not able to get any extra commission to pay for their own personal use.
The most commonly used compensation model includes a split commission in which each team member is paid an exact percentage of their commission. For instance, a three-person team may divide their commissions into 40-30-30 portions, with 40 percent going to the team leader and 30% going to other members. In certain situations, the team’s compensation may be determined by performance. For instance, if team members achieve certain standards that they meet, they receive a greater percentage.
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Fiduciary Relationships
A lot of team leaders work as seller representatives. This makes their obligations as fiduciaries quite obvious. They’re accountable to work in the best interests of the seller and are not bound by any obligations toward buyers. If an agent outside the team is representing the buyer there’s not a conflict of interest.
In some instances, there is a possibility that an agent within the group could represent the buyer. This can result in a situation referred to by the term dual agency. When a team is dual-agency, its member represents the seller and members of the group represent the buyers. This is a way to avoid creating conflicts of interest however if you’re a buyer, it’s best to talk to your agent about possible conflicts and how they can avoid these.
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Real Estate Team Models
There are a variety of ways to organize the real estate team. The ideal structure will depend on the agent’s level of expertise, the number of agents there are, as well as the strengths and weaknesses of each agent.
However, the majority of teams follow one of the three models:
- Mentor/Mentee Real Estate Team
- Team Leader Model
- Lead Team Model
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Mentor/Mentee Real Estate Team
The structure of the mentor/mentee team is exactly as it sounds. Its leader, is an expert in the field however, the other members are inexperienced and new. Those who are newer, they can reap the advantages.
Instead of doing it on your own, you can enjoy the assistance of a mentor who has decades or even decades of expertise working in this field. For the team leader, it is hoped that their guidance will benefit them in the end. As the agents who are newer learn and grow, they’ll add even more to the bottom line of the team.
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Team Leader Model
The team leader model is best when an agent has a well-known personal brand. If the name of an agent and appearance are well-known in the community, it could not be enough time during the day to meet the demands.
A person with this type of recognition can form their own team to reduce the workload. There are generally strict branding guidelines for the other team members within this kind of arrangement. For instance, an experienced agent known as John Smith might call his team “John Smith Realtors” and the team members must use that name on the letterheads on which they are.
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Lead Team Model
The model of the leadership team is the reverse of the model of a team leader. Instead of a single team member taking all the decisions and making the decisions, many real estate agents are grouped together and work together as partners. This is usually the case when agents possess different abilities that work with each other.
For instance, one agent may be an expert at conducting open houses but struggle with telephone communication. They could work with another agent with good phone skills or vice versa. In the end, everybody is able to be focused on the things they’re at ease with and their group is more effective for it.
