Working with a Real Estate Team Has Its Advantages Working as part of a team is becoming more common among real estate agents, and it benefits both the agents and their clients. According to a 2018 National Association of Realtors survey, 26% of agents work in a partnership or with a team. Find out more about real estate teams, how they work, and whether or not you should join one.
The Foundations of a Real Estate Group
A real estate team is a group of real estate agents who work alongside and share commissions. You'd collaborate with the entire team rather than working with a single real estate agent. Although there are no set procedures that all real estate teams must follow, team members almost always pitch in to help one another and share a sense of camaraderie. If one of the agents is unavailable, the client can contact any other member of the team for help. Even if the client is assigned to a specific agent, there is always someone available. One agent may be in charge of answering buyer inquiries about listings, while another may accompany buyers on home tours or host open houses. Another person may prepare purchase offers, oversee the lending process, or attend home inspections. Note that roles can and do overlap depending on each agent's expertise and affinities. New agents can benefit greatly from teams as they learn the ropes by receiving training and mentoring.The Team Captain
In most cases, the team leader is the agent in charge of the listings. The team leaders make a list, and then the members of the team work with the buyers. In some team structures, all members are encouraged to pursue listings in certain circumstances, but the rainmaker—the person who brings in the business—is usually the leader. Note: Listings are the real estate industry's lifeblood. Without the help of a team, a team leader cannot be in ten places at once. Members of the team can hold four or five open houses at the same time. The open houses bring in a lot of buyers, which keeps everyone on their toes.How Compensation Is Calculated
Members are compensated in a variety of ways by their leaders. A salaried associate's pay can range from a flat rate to a percentage of the team leader's commission to a specific percentage split based on performance. It's possible that it's a mix of all of the above. The most common compensation arrangement for teams, according to the National Association of Realtors survey, was a fixed commission split. With a fixed commission split, the splits between the lead agent and the other team members remain consistent. For example, the team leader may receive 60% of the commission in a two-person team, and the other team member may receive 40%. Note: Please keep in mind that all real estate commissions are negotiable.Real Estate Teams and Fiduciary Relationships
Team leaders frequently work for a single brokerage, which means they only represent home sellers. Because they only have a fiduciary responsibility to the seller, they don't have to worry about looking out for the buyer in a transaction. This usually works well because representing sellers and buyers require different qualities and skill sets. Most leaders don't care if the buyer is brought in by a team member or an agent from another company. The interest of a team leader is to sell the home to the seller. If a team member brings a buyer, the dual agency applies, just as if the buyer is represented by an agent from another office within the same brokerage. Don't hesitate to get in touch with your agent if you have any questions about the dual agency or how your agent will protect your interests.The Benefits and Drawbacks of Real Estate Teams
Clients who work with a real estate team get two or more experienced agents working on their behalf without having to pay a higher commission. As team members frequently brainstorm and offer strategies for clients, the client gains collective knowledge and wisdom. Any member of the team can fill in for another in a pinch, and no client should ever feel neglected. Working with a team has the disadvantage of requiring you to work with a different person at each stage of the sales or home-buying process. When you list your home, for example, you may speak with one person and then have someone else handle your home showings and open houses. If you value consistency, working with a single real estate agent who isn't part of a team may be preferable.Most Commonly Asked Questions (FAQs)
Should a homebuyer save money by working with the same real estate team as the seller?
Using the listing agent for a home, you're buying won't save you money because the commission is paid by the seller. You should almost always use your own agent or agent team when shopping for, negotiating the purchase of, and purchasing a home.Is there a distinction between a real estate partnership and a real estate team?
It can be, but it isn't always the case. In a partnership, the agents are usually on an equal footing and may have a different commission split. A "real estate partnership" is a group of real estate investors who have formed a legal business partnership.What is the most effective way for me to locate a competent real estate agent team?
Look for agents and teams with experience in the area and the type of home you want to buy. Look through the listings to see which agents are selling homes in your neighborhood. Consult your neighbors for recommendations, and see who members of local and neighborhood social media groups recommend. If you're selling your home, interview a few different agents or teams and schedule appointments with them to give you listing presentations.