How to Build a Real Estate Team in your FIRST 12 months?
- Understand the real estate team model.
- Understand how the team works together
- Know the different roles
- Hire an Administrative Assistant
- Hire a Buyer’s Agent
- Hire the remaining team members once the Admin Assistant and Buyer’s Agent are in place and working effectively.
Real estate team model.
Even as a new agent you should consider on drafting out your own real estate team chart and post it in your office like the one below. Look at it everyday. As a new agent you are likely on your own but this will get you in the mindset of the bigger picture.
You goal in your first 12 months of business is to hire an Administrative Assistant and one Buyer’s Agent as your first real estate team members.
How do real estate teams work and what roles do they play
Below is a simple list and job description of what roles would be considered for a real estate team structure. Now, more or less people can be added to for the different roles based on overall production of your team. Teammates will also have multiple roles initially and that is ok.
Also, always keep in mind. Good people are hard to find. If you find someone that is dedicated, loyal and a hard worker but they are not doing well in their current position, then really weigh out their strengths.
There is no reason, unless necessary, to have someone doing work in areas that are not their strengths. If you have a more introverted real estate teammate who is unsuccessful working with buyers, then you may want to have them on the transaction coordination side.
Eliminate Real Estate Teammates
Before going into detail on the different roles, be sure to eliminate any cancer within your real estate team and FAST! This will counteract what you are working toward and can set you back years. Other teammates will feel it.
When you start building your team, bring your AA (Admin Assistant) and BA (Buyer’s Agent) into the interview process in hiring your other real estate team members. You want their feedback and also to observe how they all gel together. Your current real estate team will respect this as well empowering them and their voice.
Administrative Assistant – AA
The AA is likely one of the first people you would want to hire on to your real estate team. Now this initially could be a Virtual Assistant. However, I have found if you hire a dedicated AA to work side by side locally, you may get much further, quicker. A Virtual Assistant will be less expensive but an AA will be able to do more tasks and potentially grow into another role(s) within you real estate team.
The AA’s initial role will be to take over everything that isn’t income producing. This consists of the roles below not including the LS or the BA. This also includes all the miscellaneous tasks like emails, marketing, setting showing appointments, pulling comps, creating buyer / seller presentations, contract to close, relationship management, writing contracts, mail campaigns, working with other contractors, input listings in MLS and other sites, etc.
Listing Specialist – LS
This usually will become your main role besides managing your real estate team. The listing specialist will be sure to review all comparables used in the CMA (Comparative Market Analysis). This also includes driving by solds and previewing the active competition for the listing presentation. The LS’s main goal is to list new property every day. This is the lifeblood of this entire real estate team. Without listings it will be extremely difficult to create a scalable real estate team unless you have a powerhouse website kicking out leads. You List You Last.
Listing Coordinator – LC
The Listing Coordinator will take care of creating the listing agreements, analyzing the comparables and making notes on each comp for the LS to use. The LC will also be direct point of contact for the seller after the listing agreement is executed. Calling them for an introduction and emailing thereafter. They also will be responsible for weekly updates on market conditions, showing feedback and price adjustments.
They may even be present on the actual listing appointments. I suggest you do this. You can show off your team this way and the LC may bring some personality into the discussion that gels well with the LS and sellers.
You will want someone who compliments your personality but has a different vibe about them. If you are a Driver personality then you may want to consider hiring an Expressive LC as part of your real estate team.
Buyer’s Agent – BA
You may actually have more than one BA on your real estate team depending on how many leads come from your listings, website and other lead gen portals. The BA is solely responsible for showing homes to prospective buyers and getting them the right property(s) to make an offer on. Fairly straight forward.
You want someone very outgoing, impeccable customer service, knowledgeable and well trained on asking questions / closing. The buyer agents are important team members who keep the closings flowing in.
Showing Assistant – SA
The SA works hand in hand with the buyer’s agents. Many times they will be the point of contact to call, answer calls and prequalify the prospective buyers. The BA’s should be out and about opening doors and selling property. Mandatory income producing activities on your real estate team.
The SA also is responsible for setting the schedules for the BA and all the showing appointments. The SA can also take care of drafting sales contracts and addendums.
Transaction Coordinator – TC
The TC handles essentially contract to close upon receipt of an executed sales contract. Regardless whether representing the buyer or seller. This is taking an executed contract and bringing it to the closing table. Handling all of the necessary timelines, survey companies, title companies, attorneys, inspectors, appraisers, contractors for repairs, etc.
In many cases the TC will be the “face” of your real estate team in the most exciting and / or stressful time of a real estate closing. Choose wisely.
Relationship Manager – RM
Be sure to read our other articles on Past Clients and Center Of Influence. The RM is the person solely responsible for staying in front of this extremely valuable group.
This includes calling them on a regular basis asking for referrals. Emailing them. Mailing them. Sending little gifts. Calling on house anniversary dates, birthdays, etc. Setting lunches or dinners with the LC. Remember, you can expect a 10% annual return on this group if done right. 200 people. 20 closings per year. If you average commission is $5,000 = $100,000 GCI extra per year.
Your relationship manager is another very important member of your real estate team who will bring in the consistent, loyal leads.
Web Developer – WD
Check out our article on Real Estate Agent Websites. The WD can be a crucial part of your lead generation. This will include content creation on a regular basis like blogging on communities / local attractions, creating community pages for searches as well as unique search pages like by zip code or waterfront.
If you want passive leads, then consider adding a WD to your real estate team.
VP Marketing / PR – VPPR
The VPPR will be responsible for handling the design of mail campaigns and all print / online design and materials. Social Media Campaigns like Facebook, Twitter, YouTube, Pintrest, Instagram, SnapChat.
They also will be connecting with all your local media groups for magazines, radio, TV, and newspaper in order to get FREE PR. They will try to get unique articles submitted or for example having the LA interview on certain shows.
Real estate team benefits.
Team Work makes the Dream Work! The power of leverage. If this real estate in team is well managed you will be able to build the machine that will continually produce. Each role is vital and they must be in order to do their daily tasks on a well disciplined schedule.
- Leverage time. Time is one commodity you cannot get back. As the LA, you can take off for a month’s vacation and your real estate team will cover you and make you money when you are not present.
- Build more revenue. Each real estate team member will increase your sales volume assume they are managed well.
- Accountability. When you have a team that relies on you and vice versa, then everyone holds each other accountable.
Joining a real estate team pros and cons.
Pros – All mentioned above.
Cons – You assume the role not just that of a salesperson but also a manager. If you cannot manage people you may need someone to assist you with that.
Also, you do not have the ability to leverage others and eventually will cap out your income. If you are considering building a team, check out this great read below.
Real Estate Team vs Individual.
As an individual you take on a lot of responsibility and all the roles mentioned above. It should kind of overwhelm you which is why you should get into the mindset of a real estate team format.
The individual will struggle, provide a lack of service and will have difficulty staying on schedule and being consistent. In the beginning when you have limited business, it is no big deal. However, you will feel it’s time for an assistant when you feel overwhelmed and a sense of slacking. Be sure to time this right.
This is why I preach to keep your overhead low. You will make money to reinvest. Why not reinvest into one real estate team member to help you grow?
How Much Do I Pay My Real Estate Team
AA – Suggest hourly. Maybe $15 p/hr to start depending on your local market. The more they contribute the higher you can pay and eventually into a salary position when revenue increases. Also the LC, SA and TC will have similar compensation.
LS – This should be you. I used to have myself on a small salary through a payroll company collecting $1300 every two weeks. I kept the money in the business like you should too so you can reinvest into your real estate team.
BA – Usually a split such as 50/50 as you are feeding them the leads.
RM – Hourly plus bonus per new lead generated if licensed.
WD – Hourly plus maybe a percentage of every sale that comes from the website. Assuming licensed. They will tend to work more hours than their “set hours.”
VPPR – Hourly / Salary.
You can also put everyone on some sort of % closed sales each month assuming they are all licensed. This will help increase team work and production as everyone is (should be) working toward the same goal.
Can I sell my real estate team structure
Yes. I know of other teams that have sold 3-4 times their annual net earnings. It is like selling a book of business. You have built a machine with strong people and a large database of past clients. ** You can also offer stock options to your team above.
