Real Estate Teams; the good, bad and ugly!

Realtors working together as a team or group is nothing new. It likely started with husband & wife, siblings or parent & child. But a few years ago, the National Association of Realtors introduced a set of rules to officially recognize and endorse the Team model in Real Estate.

Let me start by explaining the typical hierarchy of a Real Estate Brokerage, as I think understanding this will help understand both the pros and cons of hiring a Team vs. an Individual (working on their own).

I believe its the same across the Country, but since I’ve only been licensed in Florida, this information is based on my experience and knowledge.

A Real Estate Brokerage must have a Qualifying Broker. This person is not required to be the Owner of the legal entity, but must hold a valid Florida Brokers license, and will ultimately be responsible for all License related issues; violations, penalties, etc… But in most cases, like mine, the Owner and Qualifying Broker are one in the same.

In larger offices, like the National chains, each office will have a Manager, who may or may not be a Broker. This Manager is responsible for day to day operations and oversight of the Agents in the office or “on the license”.

In a traditional scenario, if a consumer has a complaint, it would be addressed by the Manager, the Owner/Broker or the Qualifying Broker.

In a Team scenario, a Team Leader is identified and is responsible, to a certain degree, for the agents working on the Team. The Team Leader then goes to Manager, Owner/Broker or Qualifying Broker.

Pretty simple right? Its a 2 or 3 rung ladder to get to the top.

Now let me discuss what I think is the good, bad and ugly of Teams.

The Good

If a Team has a good leader who has assembled a strong, well trained group of agents, and established a system with well defined roles for each member of the Team, then I think the customer will benefit. I don’t believe this will cause their home to sell quicker or for more money, but it will give the customer a sense of confidence that everything is being handled and handled correctly. And easy access to answer any questions or concerns.

The Bad

What I explained in “The Good” is very rare. Simply think about the last time you had a poor customer service experience. I’ll bet that satisfaction wasn’t found until you went up the chain. I know when I call customer service, I have to have the call escalated so that I get someone with more knowledge, experience and authority to resolve the issue.

So how does this all translate into The Bad? How would you feel if you paid top dollar to a ticket scalper for a Chicago Bulls game only to learn that MJ was out due to an injury. Or attending a Broadway play when the Understudy is on stage?

In the world of Real Estate Teams, you’re hiring the Team Leader because of his/her reputation, but you’re getting the “understudies” or the “bench”. Not exactly what you paid for, right?

When you hire an Individual agent, that is who you will deal with from contract to closing.

The Ugly

Check the numbers!!!

A Realtor will only start a Team if it means a growth in their business. They are not doing this because they want to provide better service and/or a better experience. Its to make more money, while working less and giving the lessor jobs to the newbie. Like I mentioned in a recent post when discussing Open Houses, you’ll never find a Team Leader at an Open House. But rather a newbie or junior agent.

In many cases, I’ve found that when you divide the number of transactions a Team closed in a year, is less, on an agent by agent basis, then many Individual Agents. I remember one year I closed 44 deals on my own. No assistants. No helpers, etc… Just me.

In the same year, a local Team of 8 (including a licensed Administrator) closed less than 100.

Do the math and I outperformed the Team. Didn’t I? Yet most consumers will see the higher number of closings and think the Team did better.

H2-Do your homework and really think about how hard and smart an Individual must work to achieve better results than an entire team.

My goal in developing and launching Home Sell and Save, LLC., was to cut down on the wasted time and tasks that is a part, too large in my opinion, of a Realtors daily tasks, such as:

While other agents are doing one or all three of these tasks, I can be on the MLS reviewing the market, answering calls from Clients, Buyers and Agents on the properties Home Sell and Save has listed. In other words, being productive for my clients and customers.

Our Flat Fee/Virtual Support service can help you Sell Your Home and Save if you have the time to open the front door to let buyers in.

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Real Estate Teams; the good, bad and ugly!

Real Estate Teams; the good, bad and ugly!

Realtors working together as a team or group is nothing new. It likely started with husband & wife, siblings or parent & child. But a few years ago, the National Association of Realtors introduced a set of rules to officially recognize and endorse the Team model in Real Estate.