Real estate is a close-knit and competitive industry. Keeping this in mind, it is important to choose the best team for the brokerage. We have previously discussed how to recruit real estate professionals—now it’s time to discuss how to build the whole team.
Understanding the Concept of a Real Estate Team
A great team of real estate professionals includes a combination of brokers and other employees with a wide range of experience and skills that complement each other. Building a diverse team is crucial for a well-rounded agency. Teams with differing points of view and experiences offer different thought processes, approaches, and skills. When used together, they can bolster the team’s success.
Determine Your Readiness for Building a Real Estate Team
Building a real estate team is a very involved process. This is why before you consider building your own team, you should take time to reflect on your current business needs and address the following questions:
- Does my current workload warrant the need for additional help?
- Am I missing leads because of my large workload?
- Do I feel overwhelmed by the sense of feeling that there is not enough time in the day to accomplish the things on my to-do list?
- Do I have the time and ability to generate new business?
- What do I want the structure of my day to look like? What time do I want to start and end the work day?
- Do I have the time, space, and ability to plan for, train, and onboard new team members?
- Do I feel that I could really utilize extra time effectively if it were given to me?
As with anything important, you need a plan. Having a solid business plan before considering anything else will help give you an idea of your needs and also instill confidence in potential recruits down the line. If recruits see that there is a solid business plan in place, it may motivate them to consider the job.
Furthermore, having a realistic budget for team operations is also important when building a team. It is important to know how much you’re willing to spend in order to pay your members and function effectively before you begin the recruitment process.
Building a Real Estate Team
Teams best operate with a well-defined structure. Being clear about the roles each professional has within the team creates confidence and reduces confusion. With this in mind, you should create a team structure that fits your goals. Refer to the chart below for ideas:
| Model | Definition | Pros/Cons |
| Team-Lead Model | Team leaders essentially act as their own firm. They are run by ONE individual who then recruits and hires other real estate professionals to assist with finding and managing listings. | Pros: This type of model is great when a real estate professional wants to build their personal brand and operate as their own business entity. It provides opportunity for creativity and operating as an individual vs operating within a corporate group. Real estate professionals who use this model do not have to generate any leads themselves since they have a hired team to do the work for them.
Cons: This model tends to be expensive. The team lead is solely responsible for the finances, planning, and branding of the team. This model is brand-driven, meaning that if a real estate professional does not have a strong brand it likely will not be a successful model for them. |
| Mentor-Mentee Model | This model is designed for building up real estate professionals and training them in the process of generating leads on their own. The mentee sits under a mentor and then is eventually transitioned to be on their own and or find another team/firm to work with. | Pros: This model tends to be more informal and requires less overhead expense. The mentor does not hire anyone directly but takes home a cut of their commission in exchange for knowledge and mentorship. This structure is low-risk and low-cost. It is great for those looking to build their downline.
Cons: This type of model tends to have high turnover rates because retention is not the primary goal. Therefore, the team lead who chooses this model should be excellent at recruitment in order to be successful. This model also tends to be time-consuming because most time is spent training and recruiting new professionals. |
| Lead Team Model | This model has a heavy focus on obtaining leads at a rapid rate without sacrificing client experience. | Pros: This model allows real estate professionals to generate leads quickly and scale the business without having a strong brand. The leader has a team beneath them that does the heavy lifting of acquiring leads and distributing them to listing and showing professionals.
Cons: This model tends to be expensive. The real estate professional in charge is responsible for paying their employees despite market conditions. This model is capital-heavy. If the professional in charge does not have the funds to maintain this model, they will not be successful with it. |
Steps to Hire Your First Team Members
Once you have anticipated your needs and established a business structure, you can begin to hire other professionals to work with. Below is a list of potential positions to fill when building your team:
- Administrative Assistant
- Virtual Assistant
- Buyer’s Agent
- Listing Agent
- Inside Sales Agent
- Marketing Specialist
- Transaction Coordinator
There are various steps you can take to build your team. These include finding job recruits via word-of-mouth, job site listings, social media outreach, and so on. Once you’ve found potential recruits you can begin the interview process.
Role Descriptions in a Real Estate Team
In order to know what to require and who to hire, you must know what each position does. Below we will discuss the descriptions of each role:
- Administrative Assistant: Manages the team’s operational systems, maintains records, coordinates schedules, communicates with all parties involved in a real estate transaction, manages the office, and helps with additional administrative needs.
- Virtual Assistant: Prepares documents, data management/entry, manages emails, provides remote administrative support, and conducts research.
- Buyer’s Agent: Assists buyers in purchasing their home or property, researches and analyzes current market status, negotiates offers and creates contracts, shows properties and homes, and provides customer service.
- Listing Agent: Assists seller in making the listing, manages and secures seller contracts, conducts research on the market to determine the best price for the seller.
- Inside Sales Agent: Help real estate teams meet sales goals, follow up on leads and potential new clients, and qualify and determine needs of new leads and clients.
- Marketing Specialist: Responsible for developing marketing strategies for property and home sales as well as generating leads on social media and other platforms.
- Transaction Coordinator: Oversees the real estate transaction process from start to finish and collaborates with all members involved in the real estate transaction.
Recruiting Strategies and Onboarding New Members
Once you have decided on the team positions you’d like to fill, you can consider recruitment strategies and how you’d like to onboard new team members. This process can be as daunting as the next but we’ll help you make it simple by providing effective recruitment strategies to obtain high-producing professionals. These recruitment strategies include:
- Recruitment Marketing: This includes curating a strong social media presence with large amounts of engagement. High engagement can help ensure that as many people as possible see your posts.
- Phone Calls: This gives the recruiter an opportunity to speak with potential candidates over the phone and get to know them in a short 15-minute call.
- Personality Tests: Ensuring that potential candidates fit the company culture is crucial. Finding people with personalities that benefit your desired work environment makes a massive difference in company morale. A cohesive work environment is key to a successful real estate business.
- Interviews: Interviews are important in the recruitment process. Meeting the candidates in person or via video call will help you get to know them personally. It is also important to introduce candidates to current team members during the interview to see if they may be a good fit.
Bonus: Onboarding processes are also important for recruitment. New team members want to feel supported and valued in their work. Proper training for new hires is a great way to support them in your company.
Building a Strong Team Culture
Creating a positive team culture is a top priority when building a team. The team culture starts at the top (leadership) and trickles downward. A leader who is involved, supportive, humble, and focused on their team’s wellbeing will have a productive and happy team.
An effective leader remains objective and shows humility as they lead their team. They privately and graciously discuss areas that need improvement with employees without being demeaning. This aids in establishing a culture of accountability. Leaders can encourage growth by publicly celebrating the successes of their team and rewarding them for their hard work. Team members who feel celebrated and appreciated may be more motivated to grow.
Team Compensation Models: Understanding the Structure
Real estate teams can structure their internal compensation in various ways. It’s important to research different models to find what works best for both the team and its members. Here are three common approaches:
- Hybrid Model: This model adjusts compensation based on various factors and contributions to the transaction. For example, the split may vary depending on who originally developed the business relationship.
- Flexible Structure: Team members may have options to select different compensation arrangements based on their role and involvement in each transaction.
- Performance-Based Model: This structure allows for adjustments in compensation based on transaction volume or other performance metrics. As team members reach certain milestones, their compensation structure may evolve.
Implementing Required Systems and Technologies
With the real estate industry constantly evolving, brokerages must keep up with required systems and technologies that assist with finding leads, managing numbers, and keeping track of tasks. The right systems reduce stress and prevent confusion. Having strong systems and technologies in place also improves communication among team members.
Having a technology stack that is appropriate for your team cannot be overlooked. Effective programs that make the job easier can also increase employee satisfaction. Finding a technology stack that is user-friendly and caters to all members of your team may contribute to a more effective and cohesive team.
Common Mistakes to Avoid When Building a Real Estate Team
Professionals attempting to start teams can make common but detrimental mistakes. The goal of this section is education and prevention to ensure you don’t make similar mistakes as others. Mistakes to avoid include:
- Failing to follow up with prospects
- Lack of communication from broker to potential real estate professional
- Not having a clear vision of the team you want to build
- Lacking clarity in budgeting expectations
- Starting a team for the wrong reasons
Enhance Your Real Estate Team with Realty ONE Group
Realty ONE Group aims to provide you with the tools to up your game in ONE place. We are the UNbrokerage you didn’t know you needed. Our tools bring the coolture that we’ve created in our company to yours. Realty ONE Group strives for success and our recruiting and retention service is a ONE-stop shop for all things realty.
Building a Successful Real Estate Team
There are ample tools available to assist in making your dream company a reality. Here are some key points to take with you from this article:
- Have a clear vision of what you want your brand to look like.
- Evaluate your motives for starting a real estate company.
- Invest in high-quality technology stacks to make your life and your team’s lives easier.
- Find the compensation model that works best for your company.
- Build the team according to your needs and goals.
- Avoid common mistakes.
The real estate industry, while competitive, is not impossible to navigate. The same is true if you want to start your own company. Building the real estate brand of your dreams is possible.