Overall, teams can be very positive for businesses. Problems arise, writes Anthony Hitt, CEO of Engel & Völkers Americas, when teams operate like a brokerage within a brokerage.
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When it comes to the subject of teams within our industry, there are about as many different opinions as there are real estate professionals. There are often discussed pros and cons to join a team, and agents may consider this decision several times during their career.
While some have said that teams are the future of our industry, a crucial factor that is often overlooked in these discussions is how we define a team and the purpose it serves real estate professionals who choose to join them. After all, 100% of real estate business is handled by brokerage agents, and a brokerage should also work as a team.
Here are some considerations for brokers when approaching teams within their firm.
What is the “why”?
Some brokerages have a “no team” policy, while some have certain parameters in place for teams, and others take more of an “anything goes” approach. None of these are inherently better than the others, as long as brokers and agents understand the “why”, or in other words, the reason for building a team and goals for what they would like to accomplish.
It is the purpose and structure of a team that will determine its impact on the business as a whole.
For example, brokers leading a team for mentoring opportunities can drive professional development, referrals, and overall collective success, while an agent-led team can sometimes create a competitive business within a company. If agents feel they need to function as a team because they need more support or resources, this may indicate that maybe leadership should provide more value. at the brokerage level.
Ultimately, when considering the birth of a team, there are only two reasons to begin this journey. First of all, this potential team leader has a real desire for a mentor. Second, they simply have too much business, so much so that their ability to provide a high level of customer service diminishes. Anything beyond either reason is insufficient.
For example, many teams get started due to perceived monetary gains or an individual’s desire to create their own brand. Brokerage should be a benefit to the individual’s brand, and if they are building a team, all members should benefit from brokerage equally. This is the only way for all three parties to work together to long-term loyalty.
Redefining “the team”
Real estate professionals join teams for a number of reasons, with greater reach, economies of scale, accountability, training, support, and collaboration to name a few. However, if agents think they can perform better as members of a team than as individuals, there’s no reason brokers can’t foster those same benefits.
As a broker, you, your staff and your brand should all be part of an agent’s “team” and vice versa. It means continually building and reinforcing a strong culture collaborating, sharing information, teaching and achieving collective success, and creating efficiencies to help people sell more real estate. It should be noted that there is a difference between a support team and a truly high performing team.
Support teams can indicate that an agent runs a business as a business. Successful teams, on the other hand, are more agents acting like a brokerage within a brokerage.
Brokers should also make the most of their brands and help their agents do the same. As business owners, if brokers invest in a partnership or affiliation with a bigger real estate brand, they should use every possible tool and resource at their disposal. This should produce the same benefits as a team, but on a much larger scale.
Factors such as reach, brand recognition and sphere of influence are all magnified when a brokerage is part of an organization where a “team” mentality is applied at the brand level and is affects each individual agent.
Often strong corporate support can eliminate the need for independent working structure of a team. As another example, consider the high performing agent who has neither the time nor the resources to do anything other than sell. By being part of a larger brand that provides marketing materials, technology, training and comprehensive agent support, the agent can focus on what they do best: building relationships and selling. .
Within a team, the power belongs to the team leader. As a broker, are you? Overall, teams can be very positive for businesses. Problems arise when teams operate like a brokerage within a brokerage, which for a broker/owner means handing over a lot of control of your business to someone else.
However, understanding the purpose of teams, the role they play or don’t play in your business, and establishing a strong company culture can help put the structure in place to help agents and brokers succeed. Ultimately, if you’re supporting agents and helping them grow professionally and achieve their goals, the issue of teams becomes less relevant.