Real Estate Teams: How They Work and Why You Should Consider Them

Home sales can unfold at lightning speed, leaving buyers caught in bidding wars scrambling to keep up. But what happens when your real estate agent falls ill or has a prior commitment? This is where real estate teams step in, offering a solution to ensure a smooth and uninterrupted transaction process.

Understanding Real Estate Teams

Real estate teams allow two or more agents to collaborate, sharing resources, time, and expertise. While only a quarter of all Realtors are currently part of a team, they are gaining popularity, according to the National Association of Realtors. These teams benefit both clients and agents, providing efficient assistance and improving work-life balance. Let’s take a closer look at how real estate teams function and how they differ from solo agents.

How Real Estate Teams Operate

Real estate teams can take on various structures. They may consist of a lead Realtor or broker with support agents under them. Alternatively, they can be a group of independent professionals pooling resources such as office space and marketing materials. Some teams operate as equal partnerships, sharing every aspect of a transaction.

State regulations determine the legal definitions of real estate teams. For instance, in Connecticut, a team is defined as a group of at least two licensed real estate brokers or salespersons affiliated with the same sponsoring broker and using a team name for advertising purposes.

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Regardless of the specific structure, all real estate teams work on the principle of collaboration and support. As Alex Capozzolo, co-founder of Brotherly Love Real Estate, says, team members “work together, coordinate, and support each other with every client.” Teams can range from small and intimate groups to larger, well-organized entities with a full staff handling various roles such as accounting, marketing, and legal support.

Small Teams vs. Large Teams

Both small and large teams have their advantages and drawbacks. In a small team, you typically have one primary point of contact, with others available to assist when needed. This setup offers personalized attention but may lack the diverse expertise found in larger teams.

With a larger team, you may have a single point person guiding you through the overall process, while specialists handle different aspects of your transaction. This division of tasks can be more efficient but may leave you feeling shuffled around and needing to repeat yourself.

Real Estate Firms and Commissions

As a buyer or seller, the commissions you pay to your real estate agent remain the same regardless of whether they operate individually or as part of a team. However, the agent’s commission share may vary within the team.

Each team structures its compensation differently. For example, some teams allocate a set commission for all members and offer additional bonuses for individual sales. Other teams evenly split commissions after expenses, charge a flat fee, or have varying splits favoring either the team or the agent, based on who initially acquired the client.

The important thing to remember is that the commission split should not impact the quality of service you receive as a client. Dawn McKenna, a real estate broker and owner of Dawn McKenna Group, advises that if you sense your agent is stretched thin due to team commitments or fees, it may be time to reassess your choice.

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The Advantages of Using a Real Estate Team

When a real estate team operates effectively, they can leverage their collective knowledge, time, and resources to offer you superior service. For buyers, this means better research, previewing of listings, and flexibility in accommodating your showing schedule. Sellers benefit from broader marketing exposure, as team members share your listing with their clients.

Additionally, having a team ensures there is always someone available, knowledgeable, and capable of assisting you. Nobody can be available 24/7, so the presence of a competent team member ready to step in when needed is invaluable.

The Disadvantages of Using a Real Estate Team

The primary disadvantage of utilizing a real estate team is the risk of poor collaboration, resulting in miscommunication and a lack of synchronization. It’s vital to avoid any inter-office drama that could potentially jeopardize your transaction. The last thing you want is for a miscommunication to derail the most significant transaction of your life.

Even when a team works well together, you may feel less specialized attention compared to an individual agent who solely focuses on your search or property. Multiple team members with delegated responsibilities may require you to engage with different individuals for specific tasks, leading to repetition and confusion.

Building Your Real Estate Dream Team

Building your real estate dream team is similar to selecting a top-notch agent. Start by deciding whether you prefer a smaller or larger team, and then research the best-rated teams in your area. Schedule interviews with representatives from several teams to get a feel for their operations.

During the interview, inquire about their processes and team dynamics. Discover if they operate as equals or rivals, and how they divide duties. Ask for data on their previous deals, pricing accuracy, time on the market, network connections, and social media reach. It’s crucial to ensure they can demonstrate real success.

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Once you’ve chosen a team, clarify who will be your main point of contact throughout the buying or selling journey. Establish a clear communication plan and identify secondary contacts in case your primary agent is unavailable.

To embark on this exciting endeavor with a trusted and experienced real estate team, turn to Garrity Traina. We are committed to providing expert guidance and exceptional service every step of the way, ensuring your real estate journey is a success.