In many markets, the traditional model of a lone real estate agent has shifted towards a more team-oriented approach. It’s crucial to weigh the pros and cons of each model before deciding on what type of brokerage works for you. Here’s a look at working with a real estate team to help you make an informed choice.
Working Solo in Real Estate
If you’re new to the industry, note that real estate agents must work under a broker’s supervision, though they operate independently within the brokerage. While agents may belong to the same brokerage, they manage their own clients and commissions.
Historically, most real estate agents worked solo, but the industry has seen a significant shift towards team structures. According to an independent national study by Workman Success Systems, 85% of real estate agents believe that being on a team provides a competitive edge, and 77% reported a “positive” or “very positive” experience working as part of a team. Despite this trend, working solo has its advantages and drawbacks.
Pros and cons of being a solo real estate agent
Pros:
- Flexibility: Set your own schedule based on personal preferences.
- Unlimited Earning Potential: Keep all commissions from transactions you close.
- Independence: Choose clients and marketing strategies independently.
- Sense of Ownership: Enjoy the rewards of your individual successes.
- Client Relationships: Develop close, personal connections with clients.
Cons:
- Competition: Compete with other agents within and outside your brokerage.
- Income Stability: Slow periods can be financially challenging without sufficient savings.
- Long Hours: Manage all open houses and client meetings, which can affect work-life balance.
- Financial Risk: Cover all business expenses, including advertising and marketing, regardless of sales.
Working in a Real Estate Team
Real estate teams can have various structures. Some teams work together and benefit from a steady flow of referrals from past clients and a robust lead-generation program. The team distributes leads for follow-up by team members, who may become the primary contact for those clients.
Other teams assign specific roles to each agent. For example, one agent may handle client presentations, another may write sales listings, and a third may oversee lead generation.
Some teams have members specializing in different niches, such as commercial properties, investment properties, or specific types of residential real estate.
Pros and cons of joining a real estate team
Pros of Joining a Real Estate Team:
- Learning Opportunity: Gain knowledge from experienced agents and improve your skills.
- Shared Expenses: Split costs for support staff, promotional materials, and other resources.
- Shared Profits: Reduce financial risk by sharing income and responsibilities.
- Shared Responsibility: Benefit from a more flexible schedule and support during busy seasons.
Cons of Joining a Real Estate Team:
- Personal Branding: Building a personal brand can be challenging if the team’s identity dominates.
- Brand Differentiation: Ensure the team’s focus aligns with your niche to avoid conflicts.
- Team Dynamics: Manage relationships with various personalities within the team.
- Smaller Commission Cut: Share commissions with your broker and team lead, which may reduce your earnings.
Joining a Real Estate Team vs. Working Solo: Which Do I Choose?
Consider these questions before deciding:
- What are my long-term career goals?
- What type of environment do I thrive in?
- What support and resources do I need?
- What is the team culture and track record?
- What opportunities for growth and advancement are available?
- How will joining the team impact my personal brand?
If you’re looking to expand a successful practice, consider:
- Do you have enough name recognition to support additional agents and staff?
- How will the team help you expand into new niches or market areas?
- Do you have well-defined branding that can transition into a team brand?
- Do you have a talent for managing and developing others?
- Do your referral sources expect your personal attention, or would they be open to working with team members?
Consider both your immediate needs and long-term goals. Consult with mentors or colleagues experienced in both solo and team environments for valuable insights. As you explore career growth opportunities, look into Allied Schools for California-approved real estate continuing education. Our courses are designed to enhance your skills, increase your income, and sharpen your competitive edge. Start today!
