Three steps to start building your real estate team.
By Mike Parker, CRS
Mike Parker has had a team since 1991, and his colleagues Melondie Sullivan and Jill Kuchle have been with him for 17 and 14 years, respectively. Mike’s team has grown from one assistant over the years to four full-time assistants and seven team agents handling 300 units in 2016.
Are you thinking of building a team? Many CRS Designees see their businesses grow to the point where they need to bring on some help. How do you know when the time is right, and how do you get started?
If you are a top-producing agent, meaning you are netting a six-figure income, then building a team might be right for you. The stakes can be high—I have seen plenty of teams start and then crash and burn—so here are some things that might help you along the way.
The first question you need to ask yourself is: Why are you building a team? Is it to increase profit or to free up some of your time? Both can be achieved, but one must come before the other, so decide where you want to focus first.
Establish job descriptions for everybody, including yourself. If you are the “rainmaker,” you get paid to do five things and only five things: List homes, sell homes, prospect, negotiate contracts and lead the team. As the team grows and your team members become more experienced, some of these things might even be lifted from your plate.
Your first two hires should be a part-time bookkeeper, for bills and profit and loss income statements, and then a full-time administrative assistant who becomes licensed within the first three months. A licensed assistant can do so much more and can free you up to do other things that bring in net profit.
The third hire is an income-producing agent, either a buyer agent or team agent. I prefer a team agent because they can list and sell, whereas a buyer agent only works with buyers.
Have all systems in place before team members are brought on. The main reason teams crash and burn is that they fly by the seat of their pants, and there are no systems in place. If you don’’t know where to start, look into getting a coach who has experience in team building.
Unless you hire an income-producing agent, all other team members should be employees and they need to sign agreements with your team and company. And remember, you do not have to share your commission with anyone on the team when working a seller or buyer lead.
Align the vision. Everyone must have the same vision and be working toward the same goal. Your team’’s vision statement should come from you, but let your team develop the mission statement. And listen to your team members——they are the ones talking the most with your buyers and sellers.
For more detailed information, download a recording of Parker’s webinar, “Building a Team from the Ground Up.”
