Learn the pros and cons of working on a real estate team versus venturing in the industry as a solo agent
By Scott Mason
Real estate agents working in the field are presented with two options for advancing their career: Work with a team or work solo. Each choice has its benefits and challenges and will depend on your personal work style preferences. To help you make the choice that’s best for you and your business, experts share their experiences and advice on how to navigate this pivotal career move.
Working on a team
A trend in recent years, residential real estate professionals are more often joining teams to help propel them to success in the industry. While this career path has some big positives, it doesn’t come without its challenges.
Pros:
Time saver: There are only so many hours in a day. For agents who work on a team, maximizing your time to concentrate on the skills and tasks in your wheelhouse leads to success. Carl Medford, CRS, CEO of the Medford Real Estate Team of Keller Williams Advisors in Fremont, California, thinks working on a real estate team is best for this very reason. “If someone on my team gets a listing, it goes right to my listing manager, who then starts working through a checklist of things that have to happen,” he says.
The listing manager will coordinate handling disclosures, coordinate inspections and list the property on the MLS, among other tasks. Taking away these tedious tasks allows real estate agents to get back in the field and do what they’re trained to do. “Our expectation is that the agent is going to take the time they’re not spending doing the minutia and get back out there working to get another listing,” Medford says.
Backup team member: Another benefit of working on a team is the coverage or backup. Bill Black, CRS, associate broker at NP Dodge Real Estate in Omaha, Nebraska, has worked as both a solo agent and as a member of a team and notes that having the ability to take a day off without worry of losing business is essential for balancing your career with your personal life.
“I was talking to an agent who did almost $40 million [in sales] as a lone wolf, and I thought, ‘Wow, you must have no free time,’” Black says. “They’re living and breathing real estate and, unfortunately, don’t have time to enjoy their personal activities, like spending time with kids or grandkids, hobbies or traveling. What I love about a team is the fact that if I want to take a day or a week off, my teammates are there to cover for me.”
Cons:
Missing the personal touch: One notable negative of working for a real estate team is on the client side, with buyers or sellers feeling like they’re being passed back and forth and not getting that “personal touch,” as Medford says. “For a team to work, it needs to be structured properly. If a team is set up poorly, clients may feel like they’re being shuffled around or abandoned.”
Rob Brooks, CRS, broker/owner of Rob Brooks Realty in Fort Walton Beach, Florida, is the leader of his team, which he says comes with its own set of challenges. “As a team leader, you need to know how to delegate. You can’t come in with the idea that nobody can do the work like yourself and then end up just doing everything alone. Not having proper leadership is probably the most common failure for teams.”
Working solo
While working on a team can benefit some agents, others may find more success handling their business all by themselves. This route, too, has its pros and cons.
Pros:
Working one on one: Debbie Hymen, CRS, managing broker licensee at Century 21 Circle in Highland Park, Illinois, has been in the real estate industry for 27 years—all of which she has operated by herself. She says one beneficial aspect of working as a solo agent is that your clients are hearing information and advice from a singular voice. “We all explain things differently, and we process information differently. The homebuying or selling process can be daunting, especially for those who may be entering the market for the first time. I’ve found that working with one individual with one voice is beneficial to both buyers and sellers,” she says.
Commission flexibility: Black mentions another benefit of working independently: increased flexibility, particularly with commission. “Solo agents can strike their own deal with regards to commission. Working on a team, you typically will fall into a schedule; this is what your split will be based on your production. With an individual agent, the higher the producer, the more you can negotiate.”
Cons:
Missing out: One downfall of working as a solo agent is missing out on potential business opportunities, which Brooks says could be as simple as a missed connection.
“If a call comes in, and they don’t answer that phone call, and the caller doesn’t leave a voice message, you could be losing a potential client,” Brooks says. “Yeah, maybe it was a telemarketer, but what if it wasn’t? Well, they couldn’t answer the phone because they were too busy.”
So, it’s entirely possible for solo agents to be losing business without knowing it. “They’re bumping up against the ceiling,” Brooks continues. “But not in the obvious way of, ‘Oh, I had to turn down this business today.’ The business turned itself down, and you didn’t even realize it.”
Lack of coverage: Hymen adds that lack of coverage can be a deterrent for an agent looking to work solo. “As a sole practitioner, one challenge is not being able to get somebody their answer as soon as they would like it,” she says.
Hymen counteracts this by setting boundaries from the start whenever she takes on a new client. “I can’t be at somebody’s beck and call,” she explains. “I have a full life, and this is part of my life. I will not talk to somebody at 4 a.m. if I’m not awake. If I’m awake, I’ll answer them and let them know that if they leave me a voicemail or text, I will return their inquiry as soon as I am able. I remember I met an agent who said she slept three hours a night, and the rest of the time, she was doing real estate. Yes, she was very successful, but I wasn’t about to do that to my life.”
How do you decide?
Joining a team or going solo is a career-altering decision. How can agents determine the correct path for their career and business?
Medford recommends that all agents new to the field start on a real estate team. “If you want to fast track your business, get support, get leads and learn the business in a hurry—join a real estate team,” he says.
Hymen agrees, but to a point. “Grow your business and abilities with the assistance and guidance of an experienced broker that you trust and then cut loose,” she says. “Getting out there and getting experience is key.”
Whichever path you choose, Brooks says some amount of risk is inevitable. “It’s impossible to grow without risk. So go ahead and take the risk for moving your business forward,” he says.
Learn how to build the best team with RRC’s extensive eLearning catalog at CRS.com/e-learning.
Photo: iStock.com/Goodboy Picture Company/FreshSplash
