For some real estate agents, working largely alone is one of the many perks of the profession. For others, the feeling of independence begins to lose its luster rather quickly. If you’re in the latter camp, you may have begun to consider whether or not you should form a real estate team. 

After all, real estate teams are the dominating force in many markets and becoming a team player certainly has numerous advantages. Before you take the plunge, though, we recommend taking a hard look at both the pros and potential cons you may experience. 

The Pros of Forming a Real Estate Team

Whether you’re a new agent looking to leapfrog into success or a more seasoned agent who’s ready to settle down and share your workload with a team, you’ll probably benefit from the following pros:

Team-Funded Support Staff

Rather than bearing the solo burden for the cost of an office manager, administrative assistant, or transaction coordinator, your team would divide this cost. While you’d fully benefit from the staff, you would only pay a fraction of their wages.

Other Shared Resources

Have you ever researched the cost of hiring a skilled web developer, graphic designer, digital marketing specialist, or branding advisor only to realize you are years away from being able to afford them? 

You’re not alone. 

Forming or joining a real estate team would allow you to share the cost of hiring professional assistance. Rather than slogging toward success without any resources, you could use the capital you have to greater benefit by pooling your buying power.

Guaranteed Professional Development

Whether you form your own team, or choose to join one that’s already thriving, you can position yourself to learn from knowledgeable, skilled, successful real estate agents. While we encourage each agent to independently pursue continuing education, it’s impossible to overstate the benefits of hands-on learning that’s tailored to your needs.

If you want to become a better real estate agent, and have help identifying where you can improve, joining a team is a great approach.

Ongoing Lead Generation

Your team may implement several lead generation strategies, though one will probably be the existing influx of referrals from previous clients. If you have found that lead generation is a huge effort for you, or you are too new to the job to have a reliable stream of leads, a team may be the answer you need.

The Cons of Forming a Real Estate Team

Of course, working with a group can always present some challenges. With multiple strong personalities in play, you may find that it’s more difficult to come together than you’d anticipated on some issues. Here are the cons we’d recommend thinking about carefully:

Personality Clashes

As we’ve just stated, people who are drawn to real estate tend to be self-motivated, somewhat extroverted, and not likely to stand back and stay quiet when they have something to say. 

Just as in any other profession dominated by strong personalities, real estate teams will be comprised of people who get along, and people who don’t. If you are someone who greatly dislikes working with people who aren’t your preferred personality type, respect that bit of self-knowledge and treat the prospect of team dynamics cautiously.

Divided Commission Percentages

When you sell a property, your broker and your team lead will take their portion of the commission generated by the sale. When you’re part of a successful team that generates more than enough leads to go around, you’re going to have plenty of opportunities. As a result, your annual commission income should go up, not down.

If you miscalculate when you form or join a team, however, having to hand over a chunk of your commission will be painful. Unless you’re comfortable accepting some lean years while you develop your whole team, try to be strategic when you analyze the income of your potential team.

Loss of Independent Professional Identity

If you’ve spent years working to gain a reputation as an agent, or plan to work on your own down the line, you may dislike that real estate teams build a collective identity. Accolades will be shared, just like costs and liability. 

Missing Your Niche

If your experience is in commercial real estate, you likely don’t want to join a team specializing in luxury condos. Be sure to form or join a team that’s heading in the direction you want to go.

Team Preparedness Checklist

If you are considering leading your own team, you’ll need leadership skills that even a successful, outgoing real estate agent may need to brush up on. 

Use this checklist to begin your self-assessment:

• Are you able to mentor other agents?

• Are you a natural teacher who enjoys educating others?

• Do you enjoy the process of team management?

• Will your reputation and lead generation avenues allow you to support your fellow agents and your support staff?

• Does your existing branding lend itself to a team dynamic, or will you have to give up your current branding and start anew?

• How will your client base respond to working with your team members? Are they expecting you to be the only person they speak with, or would they support your new direction?

If you’ve read through our checklist and have further questions or would like assistance from someone who’s been through this transition, reach out to a mentor. Ask them to share their insight on what leads to success, and what pitfalls may serve to hold you back. 

Whatever you ultimately decide, base your choice on a sharp-eyed assessment of the facts. It’s easy to get wrapped up in aspirational thinking, but you need solid information when a team of your colleagues are placing their trust in you.

Keep both your short-term and long-term goals in mind, always. We wish you every possible success in this and all your endeavors.