Navigating the vast expanse of the real estate industry, especially as a newcomer, can be as exciting as it is daunting. While the age-old model of independent REALTORS® continues for the lion’s share of agents, the market has witnessed a paradigm shift – the rise of real estate teams.
This shift raises an essential question for agents, especially those relatively new to the industry: Should you embark on this journey solo, or is joining a team the right move for you?
Each path has its benefits, so we examined the pros and cons to help you make an informed career decision.
Understanding Real Estate Teams
In 2023, seventeen percent of agents worked as part of a team, a decrease from twenty-two percent in 2022. With the fast-paced market behind us, and deals becoming increasingly more challenging to find, 2024 is likely to bring back a resurgence to Teams as agents navigate the housing slowdown.
Although no clear-cut team structure exists, many large teams model their business similarly. So, let’s demystify what a real estate team is and better understand the dynamics.
Definition & Structure
A real estate team typically comprises a group of professionals led by an experienced REALTOR®. This structure often includes a lead agent, junior agents, administrative support staff, and sometimes even specialists like marketing experts or transaction coordinators. Teams range in size, but the median number of agents working on a team today is three people.
Joining a real estate team means interviewing with the team lead or entire team and being accepted into the group.
Unlike brokerage firms, these teams operate as more cohesive units, with members collaborating closely on various aspects of the real estate transaction process.
The Offerings of a Team
For many new agents, the offerings of a real estate team can be pretty enticing:
- Access to Leads: One of the foremost benefits is the continuous stream of leads, often funneled down from the lead agent. This lead flow eliminates the initial hustle—and stress— of building a clientele from scratch.
- Shared Resources: Modern real estate operates on more than charisma alone; it involves sophisticated tools, software, and marketing materials. Being on a team means accessing tools without a personal hefty investment.
- Structured Training: Remember, in real estate, mistakes can be costly. Having a mentor guide you through the intricacies is invaluable.
Advantages of Joining a Real Estate Team
Despite its allure, real estate can be a tough nut to crack. Here’s where a team can make the journey smoother:
- Guided Learning Experience: As a newcomer, there’s a steep learning curve, from understanding market dynamics to mastering negotiation techniques. Teams often provide hands-on training, while solo agents are left to rely on classroom training and depending on your busy broker.
- Collaborative Environment: A problem shared is a problem halved. Being surrounded by colleagues means you have a think-tank to brainstorm solutions, discuss market trends, and share experiences of challenging transactions.
- Consistent Lead Generation: This can’t be stressed enough. Generating consistent business can be challenging in the early stages of one’s career. A team structure provides a buffer against the lean periods.
Considerations & Potential Drawbacks
However, it’s not all rosy. Joining a team has its potential pitfalls:
- Reduced Commission: The most glaring one is the commission split. In a typical team setup, commissions are often divided 50/50 between the team lead and acting agents. While this seems significant, especially compared to the potential 100% commission as an independent agent, it’s essential to factor in the costs and uncertainties you’d bear solo.
- Limited Autonomy: Teams have protocols. While designed for efficiency, they may feel restrictive. The freedom to “do it your way” might be curtailed from adhering to specific marketing strategies to following set communication channels. And yes, popular strategies are cold calling and door knocking.
- Dependence on Team Dynamics: Remember, a team’s reputation becomes your reputation. While this can be a boon if you’re associated with a well-regarded team, the opposite holds true as well. Additionally, interpersonal dynamics play a crucial role. A team is as much about personalities as it is about professional competence.
Going Solo – The Allure of Independence
For some, the siren call of independence is irresistible:
- Complete Autonomy: You’re the captain of your ship. Whether trying out an innovative marketing strategy, focusing on a niche market segment, or setting your work hours, the choices are solely yours.
- Full Commission: The entire commission pie—excluding brokerage fees—is yours on successful deals. On a per-deal basis, solo agents earn more than those on teams.
- Challenges & Responsibilities: While this may seem counterintuitive as an advantage, some agents thrive on the adrenaline. Yes, you’re responsible for drumming up business, managing all administrative tasks, and continually marketing yourself. Still, for many, this challenge is the thrill they seek.
Key Questions to Guide Your Decision
Making this pivotal career decision? Reflect on these:
- Financial Priorities: Can you weather potential financial inconsistencies as you build your clientele, or do you seek the stability a team might provide?
- Learning Style: Do you thrive under guidance, or are you a self-starter, comfortable learning from independent experiences?
- Work Style: Are collaborative brainstorming sessions appealing, or do you prefer making autonomous decisions?
- Risk Appetite: How comfortable are you with uncertainty, especially in the initial phases of your career?
Conclusion
There is no universal answer to the team versus solo agent debate. Your choice should resonate with your professional aspirations, work style, and long-term goals.
Before committing to a team or working as a solo agent, seek insight from experienced professionals in your market. You can interview several teams to learn and compare the offerings or buy a top solo agent a coffee to glean insight from their journey.
If you choose the camaraderie of a team or build your career solo, you always have the flexibility to change. Real estate is an ever-evolving industry. Staying flexible and open to change will ensure your career flourishes through the ups and downs.
Author: Travis French
Hi, I'm the founder of Agent Nook and a licensed REALTOR® and owner in Las Vegas. Finding great partners became my career cheat code, but it took years and happened by luck. So I started asking agents and continued to hear the same story: I can't find the right partners. So I started thinking, where do we even search? If there were a way to search, how can you warmly connect? Agent Nook is the only answer, so we built it. A place for us. Dedicated to real estate professionals and growing our careers. I'm unbelievably proud of the outcome and excited you're here.
