One of the most critical choices you will make at the start of your career as a newly licensed or potential real estate agent is whether to work solo or alongside a team.
This decision is crucial because it shapes the entire future of your practice and determines how much financial and professional success you can gain.
Let us take a quick look at the advantages and disadvantages of joining a real estate team:
Pros of Joining a Real Estate Team
- Great way to gain experience
- Comes with training and support
- Shared Business expenses
- Everyone is working together
- Keeps you on track
- Creates a larger sphere of influence
Cons of Joining a Real Estate Team
- Smaller commission cuts
- You’re not in charge
- You have to follow someone else’s brand
- You need to mesh well with the team
As a new agent, you are bound to be faced with a lot of challenges, including:
- Selling your first and subsequent properties
- Growing your business
- Learning more about the industry
- Developing your sphere of influence
- And overall, becoming a successful real estate agent.
Let’s face it, handling all of these could get overwhelming. Many experts say new real estate agents should work in a team. Let’s take a look at some of their other reasons:
The Pros of Joining a Real Estate Team
A real estate team consists of a group of real estate agents working together under a brokerage. These agents do everything together, including managing listings and collecting commissions.
While it might seem like a wrong idea to team up with your competition, you should know that joining a real estate team might be a good idea – especially if you are a new agent.
Great Way to Gain Experience
Working in a team allows you to be closer to other agents, some of which will be more experienced than you are.
You get to see how they handle their leads and clients and learn things from them, thus helping you to become a better realtor.
Additionally, the leads given out by the team leader are pooled together. With a combination of effort from every team member, it is easier to find and land a client.
Comes with Training and Support
As a new agent, it could get overwhelming trying to keep afloat. But, if you work with a team, you get professional support from other agents and your team leader. You can also enjoy proper training and education that benefits your career.
Shared Business Expenses
Like any business, being a real estate agent comes with its expenses. These include licensing fees, brokerage fees, operation costs, continuing education, marketing materials, office supplies, self-employment income taxes, MLS fees, and lots more.
However, in a real estate team, all these expenses are shared amongst everyone, thus helping each teammate to save some extra money.
Some expenses you get to share with your teammates include MLS fees, office supplies, marketing material, operation costs, and others.
Everyone is Working Together
In the real estate industry, the competition is usually agent against agent, and in the case of a team against team.
This simply means that rather than working against your teammates, you are working with them, thus giving you fewer people to compete against.
This way, you get to pool together resources and marketing power to land clients. And suppose one teammate is unwilling to work with a particular client. In that case, the client can quickly be passed on to you rather than have them go to the competition.
Keeps You On Track
While working alone allows you more control of your time, it also gives you the chance to become lazy by dilly-dallying and procrastinating.
However, suppose you are working in a team. In that case, you are automatically accountable to your team leader and teammates. You will thus be pushed to work harder and be more productive.
Creates a Larger Sphere of Influence
When working as a team, your sphere of influence is no longer limited to the people you know.
Instead, it spreads to include everyone your teammates know, which increases your chances of landing a client.
The Cons of Joining a Real Estate Team
While joining a real estate team might be the best for new agents, the same cannot be said for experienced agents.
This is because they might be looking for more independence and freedom that a team cannot give them since they have more experience.
Smaller Commission Cuts
While sharing expenses with your teammates will help you cut costs, it will also mean you get a smaller commission cut. Unfortunately, this will limit your earning potential.
You’re Not in Charge
Real estate teams always have team leaders who are in charge of running the entire team.
When working in a team, you don’t get to be your own boss and call the shots; you have to answer to the team leader and other teammates.
This loss of independence and decision-making makes you less of the entrepreneur you would be if you were working solo.
You Have to Follow Someone Else’s Brand
When you work in a real estate team, you put all your efforts into building another person’s brand rather than yours.
Unfortunately, this means you might not get the chance to pursue your interest because you are pursuing that of the brand and team leader.
It also means that if you ever decide to go independent, it might seem like starting from scratch.
You Need to Mesh Well with the Real Estate Team
Personality is so important in a team that some teams won’t accept agents based on their personality. Different people have different personalities, and when working as a team, you have to deal with all these personalities, good or bad.
While some teammates might have personality types that agree with yours, others might be more difficult to work with. This affects how well you can get along with your team and produce results.
Final Thoughts on Joining a Real Estate Team
Joining a real estate team is not a prerequisite to success in the real estate industry. But, it has many benefits that could help you kickstart your career as a real estate agent.
If you are a newly licensed agent, joining a team is advisable. But, in the end, whatever decision you make, just make sure you consider both your short-term needs and long-term goals and ensure you are getting the most out of it.
TL;DR: Should you join a real estate agent team?The answer:it depends. Some new real estate agents like the safety net that a team brings them while experienced agents like to go it alone. Occasionally, new agents will prefer independence because they already have a good source of leads.
Alright, let's dive into the nitty-gritty of the concepts presented in the article. The key decision for a new real estate agent is whether to work solo or join a team. Let's break down the pros and cons mentioned in the article:
Pros of Joining a Real Estate Team:
-
Great way to gain experience:
- Working in a team provides exposure to more experienced agents.
- Observing their methods can contribute to your growth as a realtor.
-
Comes with training and support:
- Teams offer professional support from both peers and team leaders.
- Access to training and education can accelerate your career development.
-
Shared Business Expenses:
- Operating costs, licensing fees, and other expenses are shared, saving money for individual team members.
-
Everyone is working together:
- Collaboration reduces competition within the team, pooling resources and marketing power.
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Keeps You On Track:
- Being part of a team fosters accountability, preventing procrastination and encouraging productivity.
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Creates a Larger Sphere of Influence:
- Expanding your network beyond personal contacts through the team's collective connections.
Cons of Joining a Real Estate Team:
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Smaller Commission Cuts:
- Shared expenses mean a reduction in individual commission cuts, impacting potential earnings.
-
You're Not in Charge:
- Team dynamics involve answering to a team leader, sacrificing some independence.
-
You Have to Follow Someone Else’s Brand:
- Building another person's brand may limit pursuing personal interests.
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Need to Mesh Well with the Real Estate Team:
- Teamwork involves dealing with diverse personalities, potentially affecting collaboration.
Final Thoughts:
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Not a Prerequisite for Success:
- Joining a team is not mandatory for success but can be beneficial, especially for newly licensed agents.
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Consider Short-term Needs and Long-term Goals:
- The decision to join a team or work solo should align with both short-term needs and long-term career goals.
In summary, whether to join a real estate team depends on individual preferences, experience levels, and the desire for independence. New agents may find the support and shared resources beneficial, while experienced agents might prioritize autonomy.
