Unleash Your Career Growth Potential by Creating a Real Estate Team
Success in real estate is often a product of team effort. A great team will outperform an individual REALTOR® every single day of the week. Even if you’re a rainmaker, you won’t be able to take care of every lead that comes your way.
Building a real estate team means you can attend to every single lead that visits your website and steer them down the path to conversion. If you have more work than you can handle, it may be time to start thinking about what a real estate team can do for your business.
But, first, you’ve got to ask yourself:
Are you truly ready to manage and lead a team, and, if so, do you know what resources you’ll need? Follow this guide to build a high-performing real estate team from scratch.
How to Build Your Dream Real Estate Team
1. Make Sure Your Business Justifies Building a Team
When is the right time to build a real estate team? Many people go with the industry benchmark, which is when they start making over 40 transactions per year. But the right time to hire is when you have enough volume to justify building a team. To know whether you’re ready to build a real estate team, ask yourself:
- Are you so tied up that you have no time to spend on prospecting?
- Do you have so many clients and tasks in progress that you’re sacrificing new leads?
- Are your customers receiving the quality services they deserve without complaining about missed deadlines or minimal engagement?
If you answered “Yes” to any or all of these questions, you might want to consider making your first hire. Keep in mind that bringing in more people is not just going to earn you more money; it’s going to increase costs. So, make sure to only hire the people you need depending on your transaction volume.
2. Set Smart Goals
Building a real estate team is a surefire way to scale up your business. But before you start looking for new hires, you’ll need to have the numbers in hand. At this stage, it’s helpful to know your business goals inside and out.
What are your business objectives? And how are you going to measure the results? As the wise say, “what’s not measured cannot be improved.” Setting goals and instituting KPIs for tracking success will also help you define your overall purpose for your new team. Some smart goals might include:
- Close 15% more transactions each month.
- Increase referrals by 20% by the fourth quarter of this year.
- Respond to listing emails within 30 minutes of initial contact.
By setting these team goals, you’ll also be able to address some of the challenges that individual real estate agents face when they are too busy.
3. Have Your Systems in Place
Before you make your first hire, ensure that you have the right technology in your practice by investing in technology tools and systems that can help to increase your team’s productivity. Also, consider implementing workflow systems that are easy to learn and use; trust us, your team will appreciate it! Keep in mind that potential candidates may want to know what systems you use for transaction management, collaboration, lead management, etc.
Some of the key real estate systems to set up before you start recruiting include:
Transaction Management Software
When recruiting real estate agents, be sure to include information about the transaction management system and processes you use. Your transaction management software should be easy to learn and simple to use. Top agents want to get in and out in as little time as possible.
Most importantly, your transaction management system should be adaptable. Top-performing agents come with a set of tools, software, and systems that have contributed to their success. Your system should allow them to continue working in their specific ways.
Lead Generation System
Leads are the lifeblood of any real estate business. Thus, to succeed in real estate, you’ll need to invest in software such as BoldLeads for generating leads. A real estate CRM like Follow Up Boss can also come in handy as it doubles as both a lead generation and follow-up tool.
Team Collaboration & Productivity
Since you’re building a team, it’s important to invest in robust productivity and collaboration tools. If you plan to have a remote team, consider tools that will help facilitate remote engagement activities. For example, virtual meeting tools like Zoom that will allow remote teams to participate in virtual team building activities should be at the top of your list.
4. Determine the Ideal Organization Structure of Your Team
Next, you’ll want to figure out the perfect organizational structure that aligns with your business goals. Since you’re ready to recruit and have the business to prove it, who will you bring on board? Will you have supervisors, managers, or team leaders? And how many departments will you need? Defining your ideal team structure is critical as it can serve as an important selling feature to potential hires. Keep in mind that candidates will also want to know your business growth plans to gauge whether there will be growth opportunities for them in the future.
5. Define Your Offering as an Employer
If you want to attract top talents, you must provide a competitive benefits package. In a recent Genesis Associates study, 40% of employees said they prefer monetary incentives over other perks that a company offers. If you cannot offer competitive commission splits and bonuses, look for alternative ways to motivate your employees. For example, you could offer growth opportunities or a healthy work-life balance.
6. Use a Personality Testing Tool to Recruit Team Members
Now that you have everything set up and ready, it’s time for the fun part: hiring! To get great team members, you’ll want to evaluate your potential hires on their skills, interests, and track record. Real estate is an industry that requires candidates to have certain traits, such as impeccable communication and negotiation abilities, so take note of how each potential candidate engages with you.
You’ll also want to ensure your potential hires have the right personality and mindset for the job using personality testing tools. From the popular DISC personality test to the classic Myers & Brigs models to the Caliper Profile and the Hogan Personality Inventory (HPI), many personality assessment tools exist that can help you find candidates with the right traits for the job.
Building a superhero real estate team that can help to scale up your business takes patience and diligent effort on your part. While the journey to scaling up in numbers isn’t easy, the long-term results can help you build your real estate practice into the future. Having the right agents who understand what needs to be done will provide you with benefits that you could never capture by yourself.
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