HousingWireHousingWire
If you’re reading this article, you’re not alone. You’ve likely heard about real estate teams and how they can impact your career — but what exactly are they, and why are so many agents joining or building teams? It’s a big decision to make whether you’re just starting or want to take your career to the next level. It’s important to understand how real estate teams work for you to decide whether it’s the right career move for you.
Joining a team is a very personal decision. Our goal is to help educate you on what a real estate team is, how they work and the types of agents who thrive on teams.
How do real estate teams work?
Real estate teams are comprised of real estate agents and other professionals working together towards one common goal — to close deals. Every team member brings a particular skill set to the table. The goal is to allow each member to focus on their specific area of expertise.
Teams are led by a team leader. This is an experienced agent or broker who provides leads, training, mentorship, support and other resources for the team members. Depending on the team’s structure, agents can work closely together or independently.
Pros and cons of joining a real estate team
Joining a real estate team can be extremely rewarding, but it’s crucial to know the pros and cons to decide if it’s the right fit for your personality and career goals. Here are some factors to consider:
- Done-for-you lead generation
- Established branding & marketing
- Mentorship & training
- Administrative support
- Transaction support
- In-house marketing services
- Focus on individual strengths
- Increased opportunities
- Reduced commissions
- Less independence
- Personality conflicts
- Difficulty building a personal brand
- Team cohesion challenges
Understanding the dynamics of how a real estate team operates starts with exploring its structure and organization.
Real estate team structure
There is no one way to structure a real estate team. It can vary widely depending on the size of the team, its overall goals and the type of market it serves. However, most teams are built with the same objectives — playing to each individual’s strengths to provide top-tier service to their clients. The most common (and most effective) team structures include;
| Team Type | What it’s all about |
| The Family Team | A close-knit group of relatives working together to sell real estate. This can include spouses, children, grandparents, and extended family. Sometimes, a family’s dysfunction negatively impacts the team’s culture, though not always. |
| The “Main Character Energy “Team | One top-performing agent leads the way and is the face of the team, while other agents work in the background to build the business. This can be ideal if the main character is a protagonist — and not an antagonist. |
| The Multi-Level Marketing (MLM) Team | Team members focus on recruiting agents to build the team while receiving residual income for agents in their downline. This can sometimes take the focus off client service, though it doesn’t have to. It can also (sometimes) be off-putting to other agents in your community who don’t want to be recruited. |
| The Specialized Team | Every team member’s role is based on their strengths — agents specialize in either listings or sales, while support staff focuses on marketing or transactional details. This is quite possibly the ideal model because it plays to everyone’s strengths, but if you want to diversify your skills, you may need to advocate for yourself. |
| The Collaborative Team | The team leader is focused on every member’s growth and contributes by acting as a mentor for the entire team – if one person succeeds, everyone succeeds. This is fairly ideal since collaboration helps hone and diversify everyone’s skills and knowledge, and agents often feel supported in this real estate team structure. |
| The Unorganized Team | Teams share resources and work under the same team name but don’t exist with the intent to work closely together. It seems obvious to say it, but why be on a team when you don’t get support or mentorship? This is ideal for a very busy, self-sufficient agent — but don’t we all want to take vacation and have someone cover for us once in a while? |
Why a team’s structure matters
A team needs to be well-structured to be successful. In my view, the ideal team structure identifies clear roles for each team member, allowing each person to focus on their strengths. This enables the team to handle more clients and close more deals than any individual agent could do alone. By understanding the dynamics of a real estate team, you can decide if the structure aligns with your career goals and work style.
Team structures to avoid
While most team structures are designed for growth and success, not all teams are set up that way. It’s not until you’re in the thick of it that frustration sets in and leaves you wishing you’d never joined. As much as you’re interviewing with the team leader to join, you are interviewing the team to ensure it’s a good fit for you!
Be sure to ask questions and, more importantly, that you receive transparent answers. Don’t be afraid to ask team members for an honest evaluation of the team to get an insider’s perspective on their culture. Here are some red flags to look out for before deciding to join a team:
- No defined team structure
- Unclear roles and responsibilities
- Micromanaging leadership
- No defined market niche
- Low-quality branding and marketing
- Profits above the team’s well-being
- High turnover rates
- Lack of training and support
- Unrealistic goals and expectations
- Insufficient technology or administrative support
- Leadership lacks accountability to the team
- Limited personal growth opportunities
Addressing these red flags initially will help you avoid stress and frustration down the road.
Roles in a real estate team
At the heart of a successful real estate team is a team leader who typically heads the team. They set the vision and drive the team’s overall strategy. This person uses their experience and expertise to mentor new agents and offer guidance and support to more experienced agents.
The team leader then selects other members to join the team to support their overall business objectives. These roles include:
- Buyer’s agents: These agents focus on helping clients purchase a new home. They handle property searches, showings, and contract negotiations.
- Seller’s agents: Listing agents specialize in representing sellers. They work to appropriately price listings, stage homes, and prepare properties to go to market.
- Transaction coordinators: Transaction coordinators manage the administrative side of deals, ensuring all paperwork, deadlines, and compliance requirements are met.
- Marketing specialists: Marketing specialists handle the team’s branding and advertising efforts. They create content, manage the team’s social media, and design marketing campaigns to attract leads.
- Administrative support: Administrative professionals manage day-to-day operations, such as scheduling, client communication, and database management, to ensure the team runs smoothly.
- Team-specific roles: Larger teams can often include roles like showing assistants or inside sales agents (ISAs) who handle lead generation and follow-up.
Commission splits: How they work in real estate teams
One important part of researching a team is to understand their commission structure. Team commission splits are typically lower than those of a traditional brokerage for an individual agent. This can be attributed to teams providing additional resources that brokerages don’t — like a consistent flow of leads, technology and administrative support. There is no hard and fast rule on what type of splits a team must offer an agent. However, they are typically designed to compensate team leaders for providing resources and support.
Common commission split structures
- Percentage-based splits: Commissions are split between the agent and the team leader depending on the amount of support and resources the team provides.
- Tiered splits: As agents gain more experience and close more deals, they can earn a higher percentage of commissions.
- Flat fees: Some teams charge a flat fee per transaction instead of commission splits.
- Hybrid models: Teams might charge a flat fee for administrative support and a percentage for the other resources provided.
What do commission splits cover?
Commission splits aren’t just about how much compensation goes to the team leader — they also cover the tools and support that help you generate business and close more deals.
Commission splits typically cover:
- Lead generation
- Advertising and marketing materials
- Access to tech tools like CRMs and transaction management platforms
- Administrative and transactional support
- Training and mentorship
Evaluating the financial costs and benefits
While your commission split will be lower on a team, you will likely close more deals than you would as a solo agent. Considering the median gross income of new Realtors is under $10,000 per year, the trade-off may be worth its weight in gold.
For new agents joining a team often means having regular access to leads, training and support they would not get at a traditional brokerage. Joining a team may not be as beneficial for experienced agents who bring their book of business. However, experienced agents, especially listing agents, have more leverage to negotiate higher commission splits.
When deciding to join a team, consider what you’re getting in return for your reduced commission. Will the team’s branding, marketing, leads and support help you close more deals with less stress? If so, joining a team could be a smart move for your career.
Keeping track of commission splits across multiple transactions can get tricky, but that’s where Brokermint comes in. This user-friendly platform makes it easy to calculate and track your earnings, so you always know exactly where your money is going. Whether you’re an individual agent or part of a team, Brokermint’s powerful reporting tools give you a clear picture of your finances, helping you stay organized and focused on what matters most — closing deals and growing your business.
Visit Brokermint
Professional benefits of joining a real estate team
If you’re looking to join a team, it’s likely because you’re ready for a change and ready to grow your business. Real estate teams can add value for agents who want consistent leads, administrative and marketing support and mentorship. Here’s a breakdown of the biggest benefits you can expect when you join a team.
| Benefits of joining a team | |
| Access to leads | Don’t worry about chasing down prospects; the team typically provides leads, allowing you to focus on building relationships |
| Training & guidance | Learn from experienced agents and brokers who can show you the ropes and share their wisdom |
| Effective technology | Get access to tools like CRMs, marketing, and transaction platforms without having to bear the costs on your own |
| Administrative support | Spend more time with clients while the team handles scheduling, paperwork, and other administrative tasks for you |
| Collaboration | Share advice with your team, celebrate your wins, and support each other through any challenge |
| Brand recognition | An established team’s reputation helps to quickly build trust with potential clients |
| Work-life balance | Avoid burnout by sharing responsibilities with team members, so you have more time for the things you love – like vacationing without interruption. |
If you’re looking for guidance, a consistent stream of leads, or just a supportive group to have your back, joining a real estate team can give you the resources and community you need to thrive.
If your team is looking to level up its marketing game, Ylopo is a tool you’ll want to ask about. It offers powerful features like AI-driven lead generation, dynamic property ads, and tools to keep clients engaged. Teams that use Ylopo can give their agents a serious edge when it comes to reaching more buyers and sellers and turning leads into deals. If a team includes Ylopo in its toolkit, it’s a big win for everyone involved.
Visit Ylopo
Tech tools every real estate team should provide
Real estate teams should offer access to software that will increase your productivity. Let’s take a look at the types of tools that you should ask about when researching a team.
| Type of tools | Why it’s important |
| Customer Relationship Management (CRM) software | Keeps track of all your leads with features that makes it easier to build lasting relationships |
| Lead generation platforms | Provides a stream of new leads with features that help you convert prospects into clients |
| Transaction management software | Simplifies the transaction paperwork by keeping your contracts organized and meet deadlines |
| Marketing tools and automation | Creates effective marketing materials and campaigns to bring in new business |
| Team communication platforms | Keeps the team connected and on the same page for easy collaboration |
| Team websites | Enhances online presence with IDX integration, lead capture, and professional branding |
| Analytics and reporting tools | Tracks performance metrics to help you refine strategies and optimize efforts for better results |
| Other Real estate-specific apps | Provides on-the-go access to technology that helps simplify your day-to-day tasks |
Featured Partner
If your team is looking for a one-stop solution to tackle multiple tech needs, Market Leader has you covered. Their platform offers a powerful CRM to manage leads and client follow-ups, along with lead generation tools that keep your pipeline flowing. Plus, their customizable websites with IDX integration make capturing leads from your online presence simple.
Market Leader also stands out with its marketing automation features, helping you create polished email campaigns and promotional materials in minutes. By combining these tools into one system, it simplifies your workflow and ensures everything works together. It’s an excellent choice for teams that want to stay organized, grow their client base, and elevate their brand.
Visit Market Leader
Steps to joining a real estate team
Now that you know that joining a real estate team can be a great way to grow your career, it’s time to find the right fit. Here’s a quick step-by-step guide to help you navigate the process.
Step 1: Think about your goals
Take a minute to decide what you want to gain from joining a team. What are you hoping to accomplish? Knowing your goals will help you find a team that aligns with your needs.
Step 2: Do your homework
Start by researching real estate teams in your area. You will want to take a look at the team’s website and social media to get a feel for whether the team’s dynamics align with your goals.
Step 3: Start networking
The best way to get information is to talk to the locals. Network with other real estate professionals in your area to get their opinions on the teams you’re considering joining. This may lead you to learn about openings you may not have found out about otherwise.
Step 4: Reach out to teams
Now that you’ve narrowed down your search, reach out to the team leader to express an interest in joining the team. Ask if they’re looking for new team members and be prepared to tell them what you bring to the table.
Step 5: Prepare for interviews
If they want to learn more about you, you’ll be invited to an interview. Don’t be afraid to use this opportunity to ask questions about the team’s structure, culture, support and the overall expectations of team members.
Step 6: Evaluate your options
After the interview, take some time to decide whether this team is the right fit for you. If they make you an offer, compare it against your career goals and financial needs. Also, consider whether their core values align with your own. Remember, this decision is the next step on your career path, so don’t rush into it. Even if you ultimately decide not to join the team, it’s always good to network with fellow agents.
Step 7: Come to an agreement
The last step in joining a real estate team is to sign the team agreement. Take your time and review the document thoroughly. You may even want to run it by an attorney to ensure it is a fair and legal agreement. Make sure it includes details about commission splits, expectations and any resources they will provide.
By following these steps, you’ll be well on your way to finding a real estate team that offers the support, tools and environment you need to thrive. Take your time, ask thoughtful questions and choose a team that feels right for your long-term success.
The full picture: Are real estate teams worth it?
If you are looking for mentorship, collaboration and support to help you succeed — joining a team may be a wise career move. While it’s not for everyone, especially if you value your independence and have a strong client base — most agents find the pros of joining a team outweigh the cons. Do your research and join a team that aligns with your career goals and personal values. The most important thing is to make a choice you feel comfortable with that also helps your career.
Related articles
