Real estate agents have different opinions on working with teams. While some are for the idea, other agents enjoy the independence of working alone.
While some realtors consider having a real estate team as an opportunity to get industry accolades, awards, or people to delegate tasks to, others seek to benefit from working with a group by expanding their real estate business, increasing brand awareness, and increasing profits.
If you want to build a successful team, here are some factors that you should consider.
Know Your Business
You need to master the core skills of your business before you start delegating tasks to someone else. Before building a team, get to know what goes into running an agency, generating leads, and converting leads.
If you don’t know how to handle prospects, you will not understand what it takes to get results. This means you will not understand the challenges your team might face or how to get things done.
Lead With Revenue
Creating real estate teams is only possible after making some profit and having enough savings to honor payroll. Adding overhead to your business before adding revenue can lead to trouble.
As you grow your business, try to allocate some profit to taxes as needed, another percentage to overhead, another to savings, and a minor percentage to slush fund or your spending money.
Have a System in Place
Before creating a team, have a system to ensure you can generate, convert and close business. This is the system that you will use to train your team. Without one, your team may not know what to do and will spend valuable time asking many questions or seeking clarifications.
Delegate Tasks but Don’t Hand Over
Do not hire people to take over your responsibilities as you step aside. Walking away from your role as an agent because you have a team will not get you results. You have to stay actively involved in the business.
Real estate teams aren’t supposed to work on their own. The main aim of having a team is to reach a broader scope and expand your business simultaneously.
Pay Yourself First
Real estate teams should make more money for the owner of the business. Though they have a right to be paid or earn a commission, you need to put yourself first.
To ensure your net worth increases, take off a percentage of the net commission from every transaction and put it into your savings account. Pay your team as per your agreement and reinvest some money into the business to grow it even further.
Do Not Forget to Verify
It is essential to stay involved in what your team is up to. This means getting regular updates and checking if they need help or are handling everything well.
One of the best ways of knowing how your team is performing is by looking at the numbers. If the numbers don’t match, you need to follow up and understand why.
Wrapping It Up
Though building a team isn’t for all agents, getting into it with good planning and realistic expectations will help you grow your profit margins. While we may not have exhausted everything in this article, the tips listed above will help you build a successful real estate team.
