Jul 12, 2021
5 min read
Opinions expressed Entrepreneur the members are their own.
While there can be some beauty in being a lone wolf, working closely and collaborating with others in your field gives you additional resources, ideas, support, and multiplies your work potential. When you start a real estate brokerage firm, you can make a bigger impact and see bigger sales if you get help.
As in any other business, there are risks and it is necessary to wear a mantle of responsibility. With careful planning and a strong team, a real estate agency can succeed.
As a real estate brokerage owner, an entrepreneur can establish proven organizational strategies, produce compelling marketing materials, reduce individual accountability, and leverage a vast network from which agents can use to complete their transactions. Each of these elements is costly in both time and money and is critical to the individual agent and the overall success of the organization. Most importantly, brokers take on risk and responsibility.
In our post-pandemic world, risk is a top priority for industries around the world. Between the new stringent security protocols and regulations that have been put in place to showcase homes and the economic uncertainty associated with the long-term impact of the lockdown, real estate agents face new, unforeseen challenges in their work. Undoubtedly, the rapid roll-out of vaccinations heralds an imminent return to some semblance of normalcy, and the economy appears to be accelerating, with unemployment falling and a sharp jump in the labor market. According to Realtor.com Economic Outlook and Forecast for 2021Lower mortgage rates, coupled with greater flexibility to work remotely, also signaled an increase in first-time home buyers this year.
Connected: Home buying trends in the US in 2021
While these predictions are both timely and encouraging, we must admit that we are still probably on the cusp of another housing bubble, similar to the one that helped the country to enter the Great Recession of 2007-2009. Housing prices are rising rapidly due to high demand and competitive property offers; this is great for sellers, but can drive potential buyers out of the market. With most major cities hit hard by long-term isolation, we’ve seen some of our largest markets take the brunt of the mass exodus.
Below are just a few of the many pressing problems and uncertainties a realtor faces.
1. Hunting hungry is much more difficult.
Getting started in real estate is a risky act of juggling that requires hard work, significant investment of time and money sacrifices, research, ingenuity, troubleshooting, and it can take a long time to see a real ROI. While remote technology and digital databases have reduced the need for home travel to conduct on-site assessments or preview locations, they have also increased the speed and brutality with which the agency owner and team members must work to keep up with the ever-growing and developing competition. In fact, over 80% of real estate agents crash or go out of business within the first five years due to heavy workloads and long sales cycles.
As an agency owner, you are fully responsible for your team, but you don’t have to try to do everything yourself. The same thing you tell potential team members about how agency work frees them from administrative, technological, and marketing burdens applies to you as well. You need to split the workload and focus on what you do best, leaving yourself time to focus on growing the agency and helping your brokers sell and grow.
2. You will run out of your own network
When a person first becomes a real estate agent, they usually turn to friends, family, colleagues and personal contacts to advise them on their new career path and start accepting clients. While this is a great start for referrals, most people in social and professional circles are reluctant to buy a home and you will quickly exhaust this area of opportunity. Once that happens, it’s time to get into heavy marketing and new network activities to generate leads.
Marketing activities may include paid advertisements, thinkers, conferences, and social media posts. It takes time to build a reliable brand, and all of these factors will help attract leads, who are then evenly distributed among the agents of the brokerage company.
3. Revenue from reputation and resources is growing rapidly.
I have personally witnessed agents go from 0 to 50 transactions (and $ 45,000 to $ 175,000 in annual revenue) in less than a year by simply joining a reputable team. With the endless resources, coaching, collaboration, and cross-promotion available at the brokerage firm, agents can rapidly expand their presence, sales funnel, close ratio, and total income – while limiting personal overhead and maintaining a more sustainable work-life balance.
4. The bonuses of joining a brokerage team for new and growing agents are unmatched.
If you, as a business owner and group leader, encourage strategic thinking, creativity, and fuss among team members, you will create intrapreneurs who are passionate innovators, creating a win-win situation. The benefits of brokerage for new and growing agents are unmatched.
Even as part of a team, real estate is hard work. It’s all about building relationships and trust as you help clients find their dream home. Owning and participating in a brokerage team is beneficial to all members due to the shared risks and rewards that arise from working together. Real estate entrepreneurs can build businesses by offering brokers a productive place to be part of a team to build successful careers. If you, as the owner, offer them a suitable location, you will succeed.