Are you thinking about joining a real estate team? As a team leader of The Moldenhauer Group at RE/MAX Associates, I understand the importance of considering all angles before making this big decision.
Joining a team can provide a wealth of benefits, but it's also important to be aware of the drawbacks. In this blog post, I'll be sharing my personal experiences and insights on the pros and cons of joining a real estate team so that you can make an informed decision about your career.
Whether you're just starting out in the industry or looking to make a change, this information will be valuable to you.
When I first got into the real estate business, I knew I wanted to join a team. And I'm so glad I did! I joined a team that was selling hundreds of homes a year and had a full-time staff in place just for the team.
It was amazing to have someone always there who had a vested interest in my success. With staff in place and all the expenses paid, my only focus was to work on my skills and client acquisition. It was such a weight off my shoulders not having to worry about the administrative tasks and instead being able to focus on what I do best - selling homes.
I couldn't have asked for a better start in my real estate career, and I believe that joining a team was a key factor in my success. Even with 20 years of experience, if I were to move to a new city, I would start on a team because the support and resources they provide are invaluable in this business.
Pros-
Specialization and Division of Tasks
One of the biggest pros of joining a team is the specialization and division of tasks. On a team, different members have different areas of expertise, allowing for a more efficient workflow. This means that you don't have to spend time on tasks that are not income-generating. Such as paperwork, putting up signs, and communicating with all the vendors.
Instead, you will be able to focus on the number one job of a real estate agent each day. Which is getting into conversations with people about real estate and seeing if you can help them.
Collaboration and support from team members
One great advantage of being part of a team is having access to other members and leaders to help you. Being on a team means that any problems you run into can be discussed with your teammates. Most times, they have been exactly where you are and are happy to help. Things are more enjoyable when you have someone there to encourage you with ideas and cheer you.
Access to resources and technology
Teams have larger budgets than most individuals. By joining a team, individuals can take advantage of better tools, systems, and solutions for their clients. When you join a team all these systems are in place, and you will not lose valuable time implementing them. Also, most teams have spent years getting their systems in place you will not have to test and try other systems that didn't work well.
Positive team culture and dynamics
There is something special about being surrounded by people who have your back. Who wants you to succeed just as much as they want to succeed. Where everyone feels like they belong, share the same values, and helps one another. When you're in an environment like that, it's hard not to be motivated and inspired. Setting goals together and working towards them is easier when others are in the trenches with you. When you're on a team with positive people and a positive vibe, it makes going to work every day that much better.
Lead generation and distribution
A team that has already established their lead generation system can be a huge asset for real estate agents. Being part of a team with an existing system can provide you with more leads than you'd have otherwise. In commission sales having opportunities is the key to success. The cost of leads and systems to manage them can be outside the reach of many agents. By partnering with a team you can forgo all the risk of setting these up yourself.
Ability to leverage team leader's reputation and recognition in the industry.
You get to leverage the reputation and recognition of your team leader in the industry. This means that as a member of the team, day one you will be able to lean on the credibility and experience of the team. This can help with not only your confidence but the confidence that the client has in you.
Joining a respected and established team opens doors much quicker than just starting out on your own. Using the existing network of vendors and partners, you will have access to the best contacts. Which at times may not be accessible to newer or individual agents.
Cons-
Need to conform to the team's protocols and culture
One con of joining a team is having to conform to the team's protocols and culture. This could be difficult for some people because it might involve adapting to certain standards, rules, and regulations. Even as an independent contractor, this is about as close to an employment relationship as there is in real estate. Getting along with different types of personalities can be challenging for some. To keep teams functioning there must be conformity.
Limited control over branding and marketing efforts
Another con may be is that you may have limited control over individual branding. Most teams’ marketing efforts are focused on the team. This is to increase everyone on the team's brand awareness. If personal branding and marketing are important to you make sure the team, you are joining allows it.
Reduced commission splits.
One potential downside is the reduced commission splits that come with being part of a team. Many time the split among members of a team will be less than what an individual agent might receive on their own. This could mean that agents on a team will have to do more transactions to make the same amount of money. Compared to if they were on their own.
The requirement to attribute to the team’s overall success
One of the cons of joining a team is that you are expected to contribute to the group’s overall success. Most teams are performance-based. This means that all members of the team must put in their best efforts and achieve set sales goals. If a team member does not perform to the standards set, they may be asked to leave the team. This can be difficult for some people who are not used to such high expectations and pressure.
Limited control over the team's reputation and recognition in the industry.
Joining a team with a poor reputation can be damaging to your own professional image and career. It can be difficult to control what kind of recognition or accolades the team receives in the industry. Even if you work hard, others may not associate your name with the accomplishments of the group.
This means that if the team falls short of expectations or other team members fail it can reflect on you. Ultimately, joining a team with a poor reputation can involve significant risk when it comes to how you will be perceived by others in the industry. Make sure to research the team you are considering joining well in advance of applying.
Dependence on the team leader and other team members
Teams can be great opportunities for starting out or looking to increase your success. Yet, there is also the potential downside of becoming too dependent on the team for success. You may find yourself relying on others in the team rather than being able to take the initiative and go out on your own. Furthermore, you could become too comfortable within the team environment, leading you to stay content with what you have achieved instead of building your own business.
Conclusion
In conclusion, joining a real estate team can be an incredibly advantageous move for any real estate agent. A team environment can provide an unparalleled division of tasks between members. This makes it easier to start and grow your business. It also provides access to better technology and resources that are essential in such a competitive market. Teams can foster a positive culture which makes going to work much more enjoyable. As well as providing motivation and enthusiasm as you strive toward success.
It's important, however, that you take time to carefully consider the pros and cons before making this decision. Joining a team may not be right for you.
Do your research on their past successes, background, values, and goals. This will help you determine whether the team could be a good fit for your individual needs.
From my experience, joining a team has been key to my success within the real estate industry. Having a mentor close by that cared about my success as much as I did was invaluable.
If you're considering taking the plunge into joining a real estate team, then don't hesitate to reach out for advice. We're here to help! Ultimately, it's down to individual preference. If done correctly, it could be one of the best moves that you make in your real estate career! We have opportunities for joining a team or being an individual agent in the company
Written by Tim Moldenhauer January 22, 2023
