Many in the industry love to talk about the benefits of joining a real estate team right now. It’s true that there are pros to being a team agent. But some agents will find that the pros to working on a team are outweighed by the cons.
If you’re thinking about joining a team, weigh your options by looking over the pros and cons of real estate teams below.
First, let’s jump into some of the pros of real estate teams. There are plenty more than those discussed here, but these are the three team benefits that agents tend to value most.
Lots of leads
Big brokerages have an abundance of leads to share with their agents, which makes it possible for agents to focus their efforts on conversion rather than lead generation. This is simply due to the fact that teams tend to have a larger allotment for lead spend than the average solo agent.
Joining a real estate team can be great for agents who have trouble taking the steps needed to stay productive thanks to the systems and standards teams have in place to ensure agent accountability.
It’s an ideal setup for agents who have trouble setting professional goals and staying on track toward achieving them. Joining a team provides these agents with the structure needed to stay productive and profitable.
Many teams provide in-house training to their agents regularly. For a new agent, this can be especially helpful as getting trained by a group of experienced agents is one of the best ways to get a strong start in real estate.
Now, let’s dive into a few of the most significant cons associated with real estate teams. These are often the reasons agents leave teams or elect to stay on their own.
Lots of people get into real estate because they want more freedom; they want to be their own boss. While some teams allow for more agent autonomy than others, no team offers the level of freedom that staying solo provides.
Lower profit potential
Team agents typically have large commission splits to worry about, which can cut into their profits significantly. When solo agents close a deal, they’re able to keep more money in their pocket.
However, it’s also important to note that solo agents are responsible for their own marketing, prospecting costs and other business-related expenses. It’s essential for solo agents to keep a close eye on expenses to keep their profit margin at a healthy level.
The typical team has mandatory meetings, a set schedule and standards that agents are expected to adhere to. Because of this, many team agents find themselves working long hours with lots of time spent in the office.
Solo agents get to decide when and where they work. They can work the hours of their choosing from home, a coffee shop or wherever else meets their needs best, which is preferable for agents who have busy personal lives.
Is a team right for you?
Ultimately, the question of whether or not a real estate team is right for you comes down to professional preferences and personal characteristics. If you’re able to hold yourself accountable to completing the dollar-productive activities required to run a successful real estate business, you may find working as a solo agent to be more enjoyable and more profitable.
Pat Hiban sold more than 7,000 homes over the course of his 25-year career in real estate. Now, he dedicates his time to helping others succeed as agents and investors. As host of the Real Estate Rockstars Podcast, Pat interviews real estate experts to explore what works in today’s markets. He also founded Rebus University, an online training platform for real estate agents and sales professionals.