In real estate, as in most other industries, it takes a team to succeed. As the real estate market continues to grow and change, independent realtors are increasingly looking for ways to increase their reach and profitability. One way is by forming or joining real estate agent teams. In this article, we will discuss 12 great reasons why you should consider starting your own real estate agent team!
Advantages of Starting a Real Estate Team
- More Income
- Sharpened Focus
- Community and Culture
- Self employed to Business Owner
- Scalability and Growth
- Improve Your Communication and Leadership Skills
- Specialization to Expand Market Share
- Build Wealth Not Income
- Additional Streams of Income
- Leaving a Legacy
- Improve Your Quality of Life
1) Increased Income
The first benefit of forming a real estate team is increased income. Contrary to what many agents might believe, selling more houses in a month or year is not the best way to increase your income as a real estate agent. Starting a real estate team is.
Since real estate teams will consist of multiple agents rather than just yourself, it allows you to expand your reach across the market. This ensures that if a client is looking for an agent in another area, you can still get him or her as a client, which will increase your revenue!
Moreover, real estate teams also tend to close more transactions than individuals working alone. This is because real estate teams have a broader knowledge base and can provide clients with a wider range of services. Also, think of leverage. You are now able to leverage the efforts of multiple agents instead of just your own efforts and therefore serve more clients.
As a result, real estate teams are typically more successful and generate more income than those agents who work alone.
If you’re looking for ways to increase your income as a real estate agent it might be time to stop thinking about how you can sell more houses…forming a real estate team is the way to go!
2) Focus Towards Goals
A commonly overlooked advantage of forming a real estate team is that it allows real estate agents to focus more on their goals and purpose of becoming a real estate agent in the first place.
If you’re like most real estate agents, you didn’t decide to become a realtor just so you can make more money. In fact, most realtors cite that the reason that they joined the industry is so that they can make a bigger impact in their community like helping others build wealth through real estate ownership.
While working alone as an independent agent there are always distractions that will prevent you from achieving your goal which may include taking on too much work so that you cannot serve enough clients; doing paperwork instead of focusing on marketing activities; or running out of leads after placing just a few real estate ads.
However, realtors who are part of or form their own teams will be able to focus more on what they do best and help their clients better in the process! This is because realtor teams allow you to leverage the agents on your team to sell more houses while you get to focus on growing the business as well as making a bigger impact in your community. In addition, real estate agent team members can share leads with each other so that there is less competition among agents within a real estate team.
Human beings like to be part of a community and work with others. It’s in our nature. This can be a challenge for most independent real estate agents because real estate is such a competitive field, even more so today.
Moreover, independent realtors also often find that they spend most of their time working by themselves or with just one other agent on the other side of the transaction which means there is no opportunity to share referrals as well as discuss techniques and ideas related to sales and marketing methods. Most agents would agree that having someone else around who understands your situation or someone you can bounce ideas off of when faced with challenges helps alleviates stress while increasing productivity overall.
Real Estate Teams provide a sense of community and support that is often missing when working independently. A benefit of starting your own real estate team is that it allows many independent realtors (who used to compete against each other) within the same marketplace to now cooperate and work together. This can lead to the establishment of better business practices, more sharing of resources (such as leads) and an overall increase in real estate professionalism.
4) Solopreneur to Entrepreneur
If you’re an independent real estate agent, chances are that you probably started your real estate career because of the entrepreneurial lifestyle. You wanted to be in business for yourself and not answer to a boss or worry about getting fired.
However, over time it’s possible that as real estate agents we begin to feel trapped by our job due to lack of income growth, limited resources (referrals & leads) and how overwhelming marketing can get when trying to attract new clients all while doing paperwork on top of everything else!
By starting a real estate team you can now go from being a self-employed “solopreneur” to being an entrepreneur since you are now able to leverage others to grow your business. This will allow you to spend more time focused on income-producing activities such as growing your business, exploring new opportunities, or seeking new market share rather than admin tasks like doing paperwork, calling leads, or uploading listings.
If being an entrepreneur is what initially drew you into real estate, then re-ignite the fire by forming a real estate team and start making real progress in building wealth while serving others!
5) Scalibility and Growth
As an individual agent, you have a limited amount of time, resources and energy, which means that the market that you are able to serve is capped.
However, real estate teams allow realtors to leverage other agents on their team so that they can expand the market in which they operate. For example, by having a realtor who is proficient at selling luxury homes work with you and your team of real estate agents who usually specializes in serving clients interested in purchasing or selling entry-level houses will enable you to provide a broader range of services without having to expend any additional time or capital yourself. This means that you are now able to serve more sectors of the market through the agents on your team!
“If I have seen further it is by standing on the shoulders of giants.”
Sir Issac Newton
The real estate team structure allows realtors to leverage each other’s time and expertise. For example, a realtor who is good at using social media marketing can help share leads with another realtor on your team while the realtor who has great negotiation skills can help provide additional value by negotiating better deals for all parties involved. This means that you are able to serve more clients without having to spend any of your own money which saves you both time and money!
In addition to real estate teams providing more time and money savings, they also provide realtors with a lot of leverage in the marketplace. This is because real estate agents who are part of real estate teams have access to other realtor’s resources such as contacts and marketing templates while simultaneously having their own set of resources that can be leveraged by other team members on the same real estate team.
Real Estate Teams allow people agents to work together towards common goals which helps form stronger relationships among teammates as well as help each individual agent grow professionally since there will always be someone else for you to learn from or rely upon when needed!
7) Improve Communication Skills
Real Estate Teams rely heavily on effective communication because every member is required to actively participate and contribute towards achieving common goals while also communicating with each other as needed. This ensures that all parties involved understand their role and know what needs to happen next which helps build stronger relationships among teammates as well as improve real estate agents’ professional & interpersonal communications abilities (since you now have multiple people expecting you to be able to communicate effectively).
Real Estate Teams are also great for improving real estate agents’ problem-solving skills. This is because real estate teams provide a safe environment where agents can experiment with new ideas without having to worry about the consequences since they have other teammates who can help pick up the slack if things don’t go as planned.
By working with other people on a daily or weekly basis, real estate agents can drastically improve their interpersonal skills through practice and repetition, which will translate well into their business when communicating with clients or prospects.
Specialization on a real estate team is crucial because it improves productivity and allows real estate agents to focus on their strengths.
When real estate agents specialize, they are able to spend more time developing their skills in a particular area while also leveraging the resources of other teammates who have different areas of specialization. This helps improve team productivity because everyone is doing what they are good at which leads to less conflict and wasted time due to miscommunication or misunderstanding.
In addition, it also makes it easier for clients to find the right real estate agent for them since all of the agents on a real estate team will usually specialize in one or two specific areas (such as residential real estate, luxury real estate, etc).
9) Build Wealth Not Income
Wealth is built through 4 components. Residual income, duplication, equity, and multiple streams of income. A real estate agent team helps independent agents solve a massive problem in their business by allowing the agent to create something that is transferrable when they want to exit the business.
Almost all real estate agents, even the top producing real estate agents in the world, run a business that literally relies on themselves and their presence. If the specific agent is not present in their business, the business has no value.
Real estate agent teams solve this problem by making real estate agents into business owners who can leverage their real estate team to create a book of business that can be sold or transferred for additional income. This solves the real estate agents’ biggest problem in terms of being able to quickly build wealth and have something to pass on when they retire from real estate!
A realtor’s time is an incredibly valuable asset because as your skill level increases, so does your hourly rate which means you become more efficient at increasing your revenue per hour (which is why most top-producing independent realtors make over $100K/year). However since realtors are not running businesses, but rather working in them, there will always come a point where real estate agents feel like they’re hitting a real brick wall and need to find something new.
That is why real estate teams are so important for agents who want their business to have any value of its own. When realtors are running businesses (such as real estate teams), it allows them to leverage the time that they have spent in their business into multiple revenue streams which can be used for passive income, equity growth, or even fund future projects. This means that the money you put into your real estate team is not only going towards making more money today but also building wealth so that real estate agents will never run out of options when deciding what to do next with their lives!
10) Additional Streams of Income
Continuing on the subject of wealth building, real estate teams also allows agents to create additional streams of income on top of their sales or personal production business.
When real estate agents form realtor teams, they are able to create passive income streams that will continue to give them money even when the realtors themselves aren’t working.
Real estate agent teams can be leveraged into all kinds of different opportunities for real estate agents including:
– Real Estate Agent Coaching Programs – By creating a coaching program in which realtors on your team teach prospects how to buy property or find an investment opportunity, you’re not only generating additional revenue but also helping other independent real estate agents as well! This is great because it helps out new and developing real estate professionals by giving them access to resources (such as training materials) that would otherwise cost thousands if not millions over time.
– Real Estate Agent Consulting Programs – Another great way for realtors to generate additional streams of income is by offering consulting services in niche areas such as commercial real estate or investment properties. Not only can you make more money, you can also use these tools to attract other real estate agents to join your team!
–Real Estate Team Production – This is the obvious one. Because you now have multiple agents working for you that you can get a piece of their commission on every sale, you are no longer dependent on your own production to generate income. In contracting marketplaces (such as 2008) this can become extremely helpful because you have turned agents that would have been your competition, into your partners by having them on your team.
11) Leaving a Legacy
This might seem like a strange way to describe real estate teams, but the realtors that are able to leverage their independence into real estate teams have an incredible opportunity: they can leave a legacy which will help other real estate agents for years and decades after they’re gone.
Real estate agent Michael Gerber suggests in his book E-Myth Revisited , that most small business owners (including realtor’s) fail because although there is often one person who originally starts up the company, he or she does not continue running it when times get tough. Instead of sticking around to coach and mentor others on how to succeed, this leader instead leaves right before things start going downhill leaving everyone else behind confused with no direction when they have no one else to support them.
Not only are real estate teams a great way to create multiple revenue streams, they are also an incredible opportunity for realtors to leave a legacy. By coaching and mentoring other real estate agents on your team, you are not only helping them generate more money but you’re also ensuring that the knowledge and skills which you have acquired over years of experience will be carried on long after you’re gone.
12) Quality of Life
Lastly and most importantly, real estate agents need to start real estate teams because it allows them to accomplish the one universal goal that all entrepreneurs have: have a better quality of life.
If real estate agents want to improve their quality of life, they need to start thinking about what it is that they really want. Do realtors just want more money? Or do real estate professionals also desire some time away from the office or an opportunity for a nice vacation every once in a while?
Real Estate Teams allow independent realtors’ work-life balance issues by allowing realtors on the team to pass off responsibilities onto other members. This allows agents to not only reduce stress but gives independent agents their time back so they can now spend it enjoying the life that they have created for themselves and their families.
Running a real estate team is not only great for your bank account but it can also improve your quality of life by giving you more time freedom and the ability to work on projects which are interesting to you! By having other realtors working under you, generating revenue for you and your family through commission overrides, real estate teams, provide an incredible opportunity for agents to have both time and money instead of only money.
Start Your Team Today!
There are many reasons why real estate teams are so important for real estate agents. From creating additional streams of income to building wealth for the future, real estate teams provide a number of benefits that cannot be found when working alone. So if you’re looking for ways to improve your business or life, forming or joining a real estate team might be the best decision you ever make.
So here are 12 really great reasons why every real estate agent should start their own real estate team! Do any of these reasons resonate with you? If so, then what are you waiting for? Get out there and start your team today!