What Is a Real Estate Team?

Before I get into how to build a real estate team, you need to know what a team is all about. A real estate team is a group of agents and employees with complementary skill sets that join to close more deals.

Teams come in all shapes and sizes—ranging from a duo of experienced agents who work side by side to close deals together to a single licensed agent with multiple unlicensed assistants to a dozen or more buyer’s agents, listing agents, and inside sales associates. How you structure your team is entirely up to you and depends on your business needs. However, you need to review the pros and cons to decide if it’s right for you.

Steps of How to Build a Real Estate Team

Now that you know what a real estate team is and its advantages and disadvantages, it’s time to learn how to put it together. Before starting your quest to dominate your real estate market with a team, you need a plan. Here are the step-by-step instructions on how to build a real estate team and run it successfully.

Step 1: Get Approval & Guidance From Your Managing Broker 

Even though real estate teams are legal in all 50 states, you must still talk to your broker to ensure you know the rules on how to start a real estate team. You’ll also need a split and cap agreement to know how much money you can count on from each transaction to pay your team and cover your expenses. You can renegotiate with your broker as your team grows and becomes more successful.

Step 2: Choose the Right Team Structure

Once you get the green light from your managing broker, the next step is to decide how your team will be structured. Here is a quick overview of our three favorite team structures to get you started.

Step 3: Develop a Business Plan & Budget

When overseeing a real estate team’s operations, it’s essential to recognize the unique aspects compared to managing a solo real estate business. A comprehensive real estate business plan outlining your requirements, financial considerations, and strategies for utilizing the generated revenue is crucial for success.

The real estate team business plan must include the following items:

• Mission, vision, and values
• Detailed overview of the team’s organizational structure
• Roles and responsibilities of team members
• Strategies for effective team communication and collaboration
• Conducting a SWOT analysis and setting SMART goals
• Lead generation and client conversion strategies tailored to a team-based approach
• Client relationship management and nurturing strategies
• Comprehensive marketing plan for both team and individual agent branding
• Scalability plans include expanding, hiring, and training new team members
• Financial plan reflecting revenue-sharing model, budget allocations, and profit-sharing arrangements

Step 4: Decide on a Compensation Model

When working in real estate teams, the commission is usually split among team members. Junior agents typically receive 40% to 50%, and team leaders get 60% to 75%. Teams often have a cap of around 90% of the collective cap of a group of licensed agents of the same size. It’s important to be generous when attracting high-quality agents; adjustments can be made as your team grows.

Wondering how much you’ll take home after sealing the deal? Use our handy calculator to find out! Just provide the details below, and we’ll automatically calculate your commission.

• Sale price of home: The amount of money the buyer agrees to pay for the seller’s home.
• Percent of the commission collected by an agent from the sale: The percentage of the sale price you are collecting at the close of the transaction.
• Agent commission split with brokerage: Your commission rate is agreed upon between you and your brokerage.

Step 5: Build Your Technology & Communications Stack

Remember, the tools you choose can significantly impact your team’s success. The right software helps attract new team members and reduces stress and confusion. I’ve selected some top team tools and software specifically designed to help teams. They will allow you to start with just two team members and add more as your team grows.

Marketing: Coffee & Contracts

Want to run the team leader model but can’t afford to hire a marketing manager? Coffee & Contracts is your new secret weapon. They offer beautifully designed social media and print templates that make everyone think you hired a $100,000-a-year marketing manager.

Lead Generation: Market Leader

If you need a steady stream of seller leads without the hassles of running your platform, then Market Leader is for you. Their exclusive seller leads come from housevalues.com, one of the internet’s most efficient lead capture websites. All you need to do is sign up and start qualifying your leads.

Communication: Slack

Want to escape the drudgery of digging through your inbox just to follow up on conversations with your team? Slack, a business group messaging platform, is the 21st-century method innovative teams use to communicate. No more lost emails or scrolling through endless email chains to find that one disclosure file.

Step 6: Hire an Administrative Assistant

If you want to set your team up for success, your first hire should be an administrative assistant. Having an administrative assistant on your team can be an attractive lure for recruiting junior agents. This person’s primary responsibility is to take work off the plate of the team leader or other licensed team members so that they can focus on the real estate-specific tasks that drive new client relationships and closed deals.

This work includes things like the following:

• Filing
• Calendar coordination and scheduling
• Communication that doesn’t include real estate-specific advice or strategy
• Light marketing tasks
• Errands
• Sign placement
• Marketing material delivery
• General office organization

The ideal candidate for this position is organized, helpful, and solutions-oriented. They see a problem that needs fixing or a chance to increase the efficiency of a daily routine and fix it without being told to. This role is generally entry-level, so real estate experience isn’t necessary here. But it is helpful, especially if you’re a top producer with a lot of volume.

Step 7: Build Out the Rest of Your Team

Once your team starts closing more deals than your agents can handle, it’s time to scale and recruit for your team. While the team model you choose will determine who you should hire next, here is the general order we recommend for most teams.

Critical Mistakes New Team Leaders Make

Now that you have a better idea of how to set your team up for success let’s examine some common missteps that bright-eyed and bushy-tailed new team leaders make and how to avoid them.

• Mistake #1: Not embracing the platinum rule: “Do unto others as you would have them do unto you.”
  • Do this instead: Great leaders embrace the Platinum Rule, popularized by authors Michael O’Connor and Tony Alessandra: “Treat people how they want to be treated.” You must also commit to knowing your people well enough to understand exactly what that means.
• Mistake #2: Not providing consistent guidance, direction, or accountability.
  • Do this instead: People in our industry join teams and organizations because they want to be a part of something, and they want to be led. So, if you intend to be a great leader, you must be accessible, highly communicative, and model the high-minded behavior you expect from them.
• Mistake #3: Not helping your people or team members develop to their full potential.
  • Do this instead: Consult with each team member and create an individualized growth plan. Where do their interests lie? What skills and proficiencies can be improved over the next quarter and year? What impact could this have on their performance and your profitability? Be prepared to identify the people, platforms, courses, and resources to make it happen—and to invest the resources.
• Mistake #4: Failing to respect other people’s boundaries.
  • Do this instead: Great leaders embrace their people and honor what’s important to them. Your team members want balance, which comes from boundaries. Pay attention to how you spend your time and what your people observe you do. Be willing to share your challenges and desire to make positive, impactful changes. Reinforce their boundaries and balance, and seek a peer group to do the same for you.
• Mistake #5: Not recognizing a job well done.
  • Do this instead: While it’s easy and maybe even second nature for leaders to identify what someone is doing wrong, you’ll be better respected and earn greater loyalty when you pay attention to what your people are doing right. So praise them, thank them, surprise and delight them, and be the leader others love to work with.
• Mistake #6: Making big, business-impacting decisions without consulting those you lead or other team members.
  • Do this instead: If you’re a smart leader, you’ll ask for suggestions, consider their opinions, and include them in your decision-making process. If you don’t, things can go terribly wrong. 
• Mistake #7: Micromanaging and expecting perfection from your team.
  • Do this instead: Tell your team what you want and let them do their work. Trust them and talk to each other. Everyone is good at different things, so listen when they tell you stuff. Don’t watch them all the time. Help them when they need it. This will make work better for everyone.

FAQs

What is a real estate teamerage?

I’m a new agent. Should I join a real estate team or a teamerage?

What qualifications do I need to start a real estate team?

How do real estate team members get paid?

Bringing It All Together

Building a real estate team is a fantastic way for successful agents to scale up their business and for new agents to break into the industry and learn from seasoned pros. Are you a part of a real estate team? What advice would you give to agents wondering how to start up a squad or choose a company to work for? Tell us in the comments below.

The post How to Build a Real Estate Team in 7 Steps + Mistakes to Avoid appeared first on The Close.

Pros

• Integrated payment processing
• Mobile application provided
• Simple platform interface
• Social media integrations available

Cons

• No live chat support
• Premium plan is costly
• Requires some assistance to set up the platform
• 24/7 customer support is not available

The Close Score

4.8

Pricing:

4.0

Features:

5.0

Additional Features:

5.0

Ease of Use:

4.6

Help and Support:

3.3

Customer Rating:

4.7

out
of

5

My Verdict on Follow Up Boss & Why You Should Trust It 

As a real estate technology expert with years of experience implementing these tools within a brokerage, I bring a great deal of knowledge and insight into my software reviews. My thoughts on Follow Up Boss are that it’s a powerful, all-inclusive real estate-specific CRM solution. Beginning with an easy-to-use interface and robust automation features, the platform’s ability to handle vital tasks for agents and brokers makes it an extremely valuable tool. 

While Follow Up Boss offers numerous benefits, there are some drawbacks. The platform is priced for all the bells and whistles it comes with, but that can be a bit pricey for a smaller team or an independent agent. They also charge fees for added features like marketing tools, lead automation, and website and landing pages.

My Follow Up Boss review determines that it’s a solution that can handle everything from effectively managing leads to building strong relationships with clients in the most professional way. It’s a game-changing tool to support agents, increase productivity, and help create strong real estate results. It contains all the features that every agent should want to see in their CRM. 

Follow Up Boss Alternatives

Although FUB real estate has a well-rounded set of features for real estate professionals, there are a few reasons for looking for an alternative solution for a real estate CRM. Each real estate business is different; hence, what works well for one firm may not be suitable for another. That may be due to certain feature specifications, budget, integration constraints, or the user’s preference. Here are a few alternatives to consider:

Platform	Why It’s a Great Alternative	Learn More	Ready to Purchase?
	Offers live chat customer support	LionDesk Review	Visit LionDesk
	Highly rated by customers	Real Geeks Review	Visit Real Geeks
	Affordable monthly plans	Pipedrive Review	Visit Pipedrive

Platform	Why It’s a Great Alternative	Learn More	Ready to Purchase?
	Offers live chat customer support	LionDesk Review	Visit LionDesk
	Highly rated by customers	Real Geeks Review	Visit Real Geeks
	Affordable monthly plans	Pipedrive Review	Visit Pipedrive

Follow Up Boss Reviews: What Current Users Think

Customer feedback is crucial to evaluating any CRM platform. Understanding the experiences and views of Follow Up Boss customers will allow any agent interested in the platform insights into the benefits and potential drawbacks they may encounter. The platform received an overall customer rating of 4.6 out of 5 on G2. Below, I’ve compiled some direct quotes from customer reviews that will give you a vivid picture of how this CRM fares in the real world.

Key Features of Follow Up Boss

Follow Up Boss is a powerful tool designed to boost your productivity and success in the real estate industry. It is packed with amazing features to help you create a seamless real estate operation. From unlimited contacts to texting capabilities, this CRM ensures you can manage your client relationships effortlessly. Agents can leverage the free trial to ensure it’s the right fit before making a financial commitment because the Follow Up Boss costs can add up. 

Ready to see these in action? Watch the 90-second introduction video for a quick look at how Follow Up Boss can transform your real estate business!

Unlimited Contacts

One of the unique features of Follow Up Boss is its support for unlimited contacts. This feature empowers real estate professionals to have an extended database of clients without any apprehensions about running into a limit. Whether you’re an agent working on an ever-growing list of prospects or a brokerage managing thousands of interactions, this feature ensures your CRM can grow with your business. It eliminates cumbersome data management practices and ensures a seamless way to keep all client information in one place.

Follow Up Boss Academy

Follow Up Boss Academy is a comprehensive training resource designed to help users squeeze the most value out of the CRM’s functionality. The academy provides access to several in-depth tutorials, webinars, and how-to guides on using the platform, from basic functions to advanced ways of leveraging it. Whether you’re a new Follow Up Boss user or a seasoned professional looking to fine-tune your knowledge, their academy will surely give you valuable insights and tips along the way.

Connect Any Lead Source 

Integrating leads from any source is easy to do with Follow Up Boss. It has integrations with many lead generation tools and websites, so all your leads flow into one central system. This feature is especially ideal for agents with multiple marketing means to prospective clients. By keeping all leads in Follow Up Boss, users will reduce time in the follow-up processes, avoid missing big deals, and enhance lead management efficiency.

Team Plans 

The Follow Up Boss system is designed for one agent or a growing brokerage. Their plans include all collaboration tools so that team members are always on the same page when working on a deal. Some features are shared contact databases, team inboxes, and the ability to assign tasks. It’s a feature beneficial to team leaders for tracking performance, progress, and workflow optimization. This further increases the functionality and efficiency of client service through this collaborative approach, entailing that no single detail goes unnoticed.

Texting Capabilities 

One central place for the agents to communicate with clients quickly is provided through the Follow Up Boss CRM platform. Agents can send and receive messages directly in CRM with integrated texting features. This can prove very useful in contacting clients who prefer text messages over calling or emailing. It allows for the automation of text messages for follow-ups, appointment reminders, and personalized communication. The texting capabilities ensure agents are better positioned to manage communication effectively and stay on top of it promptly.

Follow Up Boss Pricing

Follow Up Boss pricing is flexible and can cater to the exact needs of real estate professionals. There are three premium plans available: Grow, Pro, and Platform. All plans are highly scalable for all businesses and come along with features at different levels. 

All plans have unlimited contacts, lead sources, and integrations, so you can manage your ever-growing database without extra costs. Follow Up Boss has a pricing plan that will suit every business, from the single agent just getting started to the largest brokerages looking for advanced functionality.

Methodology 

The Close has a team of data analysts, writers, and editors who carefully reviewed all CRM platforms to arrive at scoring that suits the best interest of real estate professionals. Our experts are here to give complete reviews as a vital resource in wading through the myriad of solutions out in the real estate space.

Our purpose is to drive the industry forward, providing insights that are quite useful in helping agents and brokers make informed decisions, and optimize workflows, and performance in the competitive real estate environment. This commitment ensures our readers get the very finest and most trustworthy tips for actionable information that enables their success.

Here’s how we developed our Follow Up Boss review:

• Pricing: 4 out of 5
  • We ranked Follow Up Boss 4 out of 5 on pricing. Plans are flexible and tailored towards the different sizes of the business. We believe it offers great value for money on its provided features. 
• Features: 5 out of 5
  • Due to its impressive pack of tools, Follow Up Boss scored the highest for its general features. The platform has it all for anybody looking forward to starting and growing a real estate business.
• Additional Features: 5 out of 5
  • Features going above and beyond most general features like mobile application, document management, and marketing tools helped Follow Up Boss score an impressive rating. 
• Ease of Use: 4.63 out of 5
  • The vast majority of the platform is relatively easy to use; however, most users generally report a little bit of a learning curve at the very beginning of transitioning or implementing the platform. 
• Help and Support: 3.25 out of 5
  •  While Follow Up Boss provides support by phone and email 7 days a week, it could offer live chat support along with 24/7 customer support. 
• Customer Rating: 4.65 out of 5
  • Based on user feedback and reviews, Follow Up Boss holds a high rating from its customers. This indicates overall satisfaction with the platform in terms of its overall effectiveness, feature set, and net positive effect on users’ real estate businesses. 

Read more about our methodology here.

FAQs

What features should I look for in a CRM for real estate?

Why do real estate agents need a CRM?

Is it difficult to transition to a new CRM system?

The Bottom Line: Is Follow Up Boss Worth Your Money? 

There are many notable features for agents to leverage with the FUB CRM, making it very desirable for most real estate professionals. My favorite features in the system are unlimited contacts, next-level texting, and integration with lead sources. The platform is useful for real estate professionals because of the availability of tailored functionality that manages leads, automates follow-ups, and keeps up strong client relations. The user-friendly interface and large integration capacity are also some of the higher selling points for this platform.

Though the pricing plans offer great value, they might be on the higher end for smaller teams or individual agents. In a nutshell, Follow Up Boss is worth every real estate professional’s time in enabling them to get the best out of their clientele management and smooth operation. Paired with robust functionality, this tool provides great support and strong scalability, making it extremely useful for real estate agents and brokerages alike. If you are serious about growing your real estate business and willing to pay for a quality CRM solution, Follow Up Boss is the way forward.

The post Follow Up Boss Review: Pricing, Features, Pros & Cons (2024) appeared first on The Close.

Pros Excellent lead generation tools Fully customizable IDX websites Various listing marketing tools Smart CRM tool driven by AI	Cons Ambiguous pricing information Sold comps cannot be sent to buyers No free trial No free version

My Verdict on kvCORE & Why You Should Trust It 

As an experienced real estate writer and marketer, I’ve researched, used, and evaluated many of the best real estate CRMs. My personal review and my team’s evaluation of kvCORE come from firsthand experience, functionality, core features, comparisons to similar products on the market, and customer reviews.

The kvCORE platform stands out from other real estate marketing tools with its range of packages and product options. Its packages are designed with core features customized specifically for real estate professionals in various roles: individual agents, real estate teams, brokerages, and large companies. Plus, the add-on products add extensive functionality for specific needs like presentations, listing marketing, and agent management.

On the flip side, a few users note that kvCORE is so detailed that it can be confusing to learn and use. Ultimately, I believe kvCORE is an incredibly powerful product with the potential to grow a real estate business massively. However, it isn’t the most user-friendly product on the market, so you must plan for a learning curve before taking full advantage.

kvCORE Alternatives

kvCORE is an incredibly versatile real estate tool, but it isn’t the best fit for every real estate professional out there. Some agents and teams will want a more budget- or user-friendly option that allows them to grow with less investment of their time and money. A few of the top alternative CRMs and lead generation tools include the following:

Platform	Why It’s a Great Alternative	Learn More	Ready to Purchase?
	Easy to use Robust real estate website features In-house professionals to outsource tasks	No review yet	Visit Agent Fire
	Transparent, budget-friendly pricing An all-in-one tool with a website and CRM AI-powered lead nurturing and SEO tools	Real Geeks Review	Visit Real Geeks
	Strong relationship nurturing system Easy-to-use team management tools Email, text, and direct mail marketing included	IXACT Contact Review	Visit IXACT Contact

Platform	Why It’s a Great Alternative	Learn More	Ready to Purchase?
	Easy to use Robust real estate website features In-house professionals to outsource tasks	No review yet	Visit Agent Fire
	Transparent, budget-friendly pricing An all-in-one tool with a website and CRM AI-powered lead nurturing and SEO tools	Real Geeks Review	Visit Real Geeks
	Strong relationship nurturing system Easy-to-use team management tools Email, text, and direct mail marketing included	IXACT Contact Review	Visit IXACT Contact

What Current Users Think of kvCORE

Positive kvCORE reviews rave about the number of tools available to help grow your real estate business. Users also love that kvCORE helps agents increase the visibility of their property listings in front of the right market. Here are a couple of five-star reviews from G2:

The biggest complaint from unsatisfied users involves the complexity of the product, noting that there can be a significant learning curve. A few other complaints state that the app is glitchy and is not user-friendly. Here are a few unhappy reviews from G2:

Key Features of kvCORE

kvCORE includes some of the most innovative technology for real estate agents. It contains multiple lead generation methods, IDX websites, a built-in CRM, integrations with other free real estate CRM tools, and detailed insights into your overall performance. Let’s take a look at the top features of kvCORE:

Customizable IDX Websites

kvCORE offers the ability to create a fully customizable IDX website along with access to a personalized app. While building an IDX website from scratch can be complicated, kvCORE makes it easy to get it up and running without dealing with complex technology. Their IDX websites include search filters, area pages, and home valuation landing pages.

Lead Generation

kvCORE’s lead generation tools are among its best features. Along with the IDX capability, the website includes beautiful landing page templates for hyperlocal content, home valuations, and property searches. It also integrates seamlessly with social media to share your lead generation tools organically or through paid advertising like Facebook or real estate Google ads.

Smart CRM

The Smart CRM uses artificial intelligence to maximize the effectiveness of your marketing strategies and organize your day-to-day tasks. It monitors and evaluates your leads’ behavior to determine what each one needs to convert into a client. Plus, this real estate software automatically plans your tasks to increase your productivity to an all-time high.

Business Analytics

The detailed data and analytics dashboard is another crucial element of the kvCORE CRM. The platform gathers data on your marketing return on investment (ROI), contact engagement, and user behavior. It also generates reports on agent productivity, which is why it is one of the best real estate brokerage software choices. Plus, all of the analytics are presented on an organized dashboard.

Listing Marketing Tools

kvCORE provides a wide range of listing marketing tools in the CORE Listing Machine & Design Center. The design center includes an extensive library of templates for print and digital marketing methods like flyers, just-sold postcards, social media posts, and single-property websites. kvCORE agents can also access a branded open house app that easily captures buyer leads and sends customized nurture campaigns.

Marketplace & Integrations

Even though kvCORE already has many valuable tools, it integrates with a variety of additional tools in its integration marketplace. For instance, the Smart Assistant integrates with ChatGPT to personalize marketing and nurturing communications and increase responsiveness and efficiency.

kvCORE Pricing

kvCORE pricing is only available with a live demo since multiple options and add-on choices will affect the overall cost. However, a few online estimations range from $499–$1,800 per month. Although the packages and pricing aren’t public information, I know the kvCORE platform has packages designed specifically for the needs of agents, teams, brokerages, and enterprises.

Plus, kvCORE provides a variety of other products that are available as add-on options, which include the following:

• CORE Home: An app that uniquely nurtures the relationship between homebuyers and agents and is designed for homeowners
• CORE Present: A presentation builder to easily create customized and fully branded comparative market analyses (CMAs) and listing presentations
• CORE Listing Machine: An automated marketing and design suite designed to market listings with both digital and print strategies
• CORE BackOffice: A business management tool to manage multiple agents, transactions, and accounting
• Brokermint: A robust broker management software to help onboard agents, automate tasks, and manage transactions
• AmpStats: Real estate recruiting and retention software for growing brokerages and companies

Methodology 

Here at The Close, we are a team of real estate pros tapping into our experience to bring agents and brokers accurate information about services and products on the market. Part of our methodology is to be on the reader’s side, creating content to help agents and brokers move the needle in their businesses.

Our criteria for this kvCORE review included the following:

• Pricing: Our pricing evaluation calculates monthly pricing, setup fees, subscriptions, money-back guarantees, and free trial availability.
• General Features: We evaluated each software’s main features, like IDX website builder capabilities, lead generation tools, marketing tools, and reporting and analytics.
• User Interface: We determined ease of use based on the navigation features of each software and user feedback.
• Customer Feedback: We scoured online websites to find all available third-party reviews about kvCORE.
• Customer Support: The support score is determined by the customer service hours, availability of live chats, help center, and the team’s overall responsiveness.

FAQs

What is kvCORE?

Does kvCORE provide leads?

Who uses kvCORE?

Bottom Line: Is kvCORE Worth Your Money? 

After my detailed analysis of kvCORE reviews and features, I believe this platform is a powerful tool that is likely to generate a high ROI for its users. Real estate professionals love its range of features for lead generation, nurturing, and managing transactions—it’s truly a one-stop shop for real estate lead generation and marketing. However, this platform can have a learning curve, so dedicate time to learning its functionality.

The post kvCORE Review: Pricing, Features, Pros & Cons (2024) appeared first on The Close.

What Is Realtor Safety Month?

Realtor Safety Month is an annual event in September created by the NAR in 2003 to educate Realtors and reduce incidents within the industry. Realtor member associations, brokerages, agents, and teams can access resources to promote safety awareness. Although September is Realtor Safety Month, you can implement the strategies year-round. Learn to develop your resiliency and communication skills to handle a crisis, should it occur, by understanding how to implement safety.

Realtor Safety Month Resources

Awareness is essential. So, I’ve compiled a list of Realtor Safety Month resources to use as a quick guide and learn more about staying safe. These resources provide education for Realtor associations, brokerages, teams, and agents. In addition to the month-long Realtor Safety events, NAR has provided a 30-day plan with materials that local Realtor associations can use to mitigate risks. 

The NAR 30-day plan includes the following:

• Social media Realtor safety tips on how and what to post throughout Safety Month
• Member email to keep their members informed with engaging and timely information
• A 30-day calendar with essential best practices for each day of the month
• A two-part Realtor safety webinar to understand risks and warning signs and avoid victimization

Here are some additional real estate agent safety resources:

• Use a real estate safety app for safe showings, lockboxes, sharing location information, and quickly finding your car.
• Learn how to protect yourself and your clients from common real estate scams.
• Check out The Close contributor, Tracey “The Safety Lady” Hawkins. Her website is chock full of safety information, tools, and resources to help you plan.
• Use this wire fraud email template from NAR.

The Importance of Realtor Safety Month + Stats to Prove It

Realtor safety is important—and we can prove it! Here are some interesting realtor safety statistics illuminating the enormity of real estate agents’ risks and challenges. Use these to begin your education on real estate agent safety.

Real Estate Agent Showings

Real estate agents must plan to stay safe in open houses and showings. Check out some of these realtor safety statistics for showings and open houses. 

• According to the Bureau of Labor Statistics (BLS), real estate agents’ work schedules often include evenings and weekends. 
• NAR reports that 35% of Realtors who were surveyed met a new or prospective buyer or seller alone at a secluded location or property.
• In 2023, 85% showed a house alone, compared to 42% in 2022.
• NAR commercial real estate safety statistics show that the typical commercial real estate professional meets prospective clients whom they’ve never met before 59% of the time, either at their office or in a neutral location. 
• Also, 18% of commercial agents surveyed said they felt unsafe hosting a showing alone.

Realtor Cyberattacks & Deepfakes With AI

Deepfakes are when a perpetrator uses artificial intelligence (AI) to impersonate someone’s appearance or voice. They’ve been used in real estate to impersonate buyers, sellers, and agents to sell a house and pocket the money without the knowledge of the party who they’re impersonating.

Real estate agents deal with sensitive information regarding people’s finances, contracts, and legal matters. Due diligence is necessary when dealing with cyberattacks, identity theft, and deepfakes using AI to trick agents and consumers. Check out some of these realtor safety statistics on deepfakes and cybersafety. 

• In August 2023, MLS system provider Rapattoni was a victim of a cyberattack, causing outages across the US. Rapattoni covers 5% of real estate associations in the US, particularly those with under 10,000 members.
• There were 5.5 million reports to the US Federal Trade Commission (FTC) in 2023 for identity theft, imposter scams, and credit bureau info furnishers and report users. $10.3 billion was lost to fraud.
• According to the Identity Fraud Report from Sumsub, deepfakes increased tenfold across all industries from 2022 to 2023, including a whopping surge of 1,740% in North America.
• According to Statista, phishing scams and personal data breaches were among the most reported cybercrimes in 2022. Over 300,000 people fell victim to phishing attacks. Data breaches were another area of fraud, costing US organizations over $9 million on average as of January 2023.

Construction & Renovation Sites

Realtors must be diligent when visiting construction sites and renovation projects since injuries can occur from falling objects or slipping. Check out these construction site stats.

• The BLS reports 1,069 fatal injuries at construction sites in 2022 and 598 in the business and professional services sectors. 
• Occupational Health & Safety (OHS) reports that real estate agents face significant risks when touring construction sites or renovation projects, like injuries from slips, machinery, or falling objects. 

Car Accidents

Real estate agents spend a lot of time in their cars, so they must also be mindful of road safety when driving to appointments. Avoid talking on the phone and texting while driving. Also, pay attention. Distracted driving can happen when you are lost in thought. 

• In 2022, the National Highway Traffic Safety Administration reported that 3,308 people were killed and around 289,310 people were injured in automobile crashes involving distracted drivers.
• According to a study by the Centers for Disease Control and Prevention (CDC), 28% of distracted driver fatalities were between the ages of 21 and 64, so it is not just teenagers who can become distracted. However, it is more prevalent among younger people. 

Men Are Vulnerable Too

While most Realtors are women (66% according to NAR), men are also at risk of assault and other dangers in the field.

• The NAR Member Safety Residential Report showed that 14% of male real estate agents said they had an encounter in which they felt threatened and unsafe.
• Residential NAR members said that they follow personal safety plans with all clients. The planning is more common among females, with 73% reporting, but 59% of males also have a safety plan that they use with their clients.

Real Estate Safety Tips

Here are some real estate agent safety tips related to the above topics that you can immediately implement.

Safety Tips for Showings & Open Houses

• Take extra precautions in locations with fewer places. Also, don’t go alone into places that are dark and vacant.
• Park on the street instead of in the driveway, where someone else’s car can block yours and prevent your escape
• Swap your favorite high heels for flats, and wear practical clothing that will make fleeing danger easier.
• Don’t enter a home’s smallest spaces, such as basements and walk-in closets, which don’t have an egress point. Instead, let your clients explore these on their own. 

Cyberattacks & Deepfakes

• Use watermarks on documents and materials to guarantee authenticity.
• Use encrypted email and messaging accounts for secure messaging.
• Ask your brokerage to provide cybersecurity training.
• Trust but verify callers. Never share personal information over the phone, text, or email.

Construction Site Safety

• Wear a hard hat, safety goggles, and a reflective vest at construction sites.
• Dress for safety when showing a fixer-upper or new construction. This attire includes appropriate shoes, long pants, and nothing that could get caught onto something.
• Instruct buyers to dress appropriately when touring these sites.
• When showing raw land, wear long pants, and don’t wander off into unmarked areas. Pay attention to weather conditions before touring large parcels.
• Watch out for slick sidewalks and steps, and follow any posted warning signs.

Car Accident Safety Tips

• Set your phone to Do Not Disturb while driving. If you must take a call, find a safe place to pull over.
• Keep using hands-free or talk-to-text phone features to a minimum since it’s still easy to get distracted.
• Preview your route before traveling to a new location. Check for road work, inclement weather, and delays.
• Keep up with auto maintenance. You don’t want to get stranded!

Bringing It All Together

September is NAR Realtor Safety Awareness Month, but you should practice real estate agent safety throughout your career. Stay alert, be diligent, and use our articles and guides to stay safe. Do you have any unique strategies you’ve used to keep safe? Share in the comments below. We’d love to hear from you!

The post Realtor Safety Month: Resources for Agents & Teams appeared first on The Close.

For the past 10-plus years, I’ve coached agents on how to attract and retain high-net-worth clients and the truth is, breaking into the world of luxury real estate is surprisingly simple. It does take some creativity, hard work, and tenacity, but mostly, you need a real passion for all things luxury. In this article, I’ll teach you how to become a luxury real estate agent using my 15 favorite tried-and-tested methods—and you can start today!

Download Our Checklist for Breaking Into the Luxury Market

First Things First: Understanding Today’s Luxury Real Estate Market

What Is Luxury Real Estate?

What Is the Luxury Real Estate Market Like Right Now?

Getting Started: What You Need

So you’re ready to tackle luxury real estate. You should know that it’s a different type of animal. To start, you’ll need to be knowledgeable about the luxury market and have a strong personal brand. And while you might want a few years of experience under your belt, it’s not an absolute requirement. 

Above all else, what really matters is your commitment to becoming a luxury real estate agent. Those who excel in the high-end market provide service, consistency, and excellence. You’ll need to be passionate, creative, dedicated, and authentic every single day. And you can start right now with my proven tips below!

1. Adopt a Fancy Hobby

The best way to meet high-net-worth clients is by doing something you already enjoy. This can be as easy as joining a local antique car group, attending a few fine art shows, sipping your way through wine tastings, or finding a local polo club.

While you might not be in a position to buy your own polo pony, there are many ways to be an enthusiast. No 1955 Jaguar D-Type? No problem. Educate yourself on antique cars and attend meetups and car shows to show off your knowledge. Then, if you are attending a vintage car race, you can bring a list of luxury properties in your area that feature large garages or outbuildings that would be perfect for a vintage car collector.

But—and I cannot stress this enough—start with a hobby you actually enjoy or at least find interesting. No one likes a poser.

2. Make Luxury Part of Your Personal Brand

A key step to breaking into the luxury market is to make sure all your marketing materials—including your business cards, website, advertising, and social media—are cohesive and sophisticated. 

Attract the attention of high-end homebuyers by showing them the best of the luxury lifestyle in your farm area. Marketing the luxury lifestyle is easier than ever before with social media as the perfect place to “fake it until you make it.” It won’t cost you a lot of money to feature and discuss high-end restaurants, gallery openings, or golf tournaments on your social media accounts. 

If you want to take your website marketing and branding to the next level, we recommend Agent Image. Trust the experts at Agent Image to create a stunning, performance-driven IDX website. Agent Image uses state-of-the-art digital marketing services including search engine optimization (SEO), social media management, and pay-per-click ads to help you stand out. Click the button below for 20% off.

3. Get Involved With Charities & Causes

It’s no secret that affluent people often support causes, attend charity events and auctions, volunteer, and fundraise. Target an issue that means something to you and get involved. Organize a toy drive, chair an event, join a board, or start donating a portion or your commission to a specific cause. 

Relationships and opportunities will develop naturally when your dedication to the cause shines through. From there, you can build a network that will lead to new opportunities.

This is another strategy that requires authenticity and sincerity. Don’t fake a love of rescue dogs if you don’t like animals—people will see right through you.

4. Sweat the Small Stuff

In a property worth millions of dollars, every detail is important. You need to be ready to point out the luxury finishes, from the big obvious indoor basketball court to the tiniest cutting-edge audio speaker. You need to know about the Italian quarry where Calacatta marble is found, which high-end French range is en vogue, and how a property’s eco-friendly green roof is not just cool—it cools.  

If, for example, you work in a market with lots of expensive historic homes, you need to have the proper vocabulary: know a cornice from a corbel and the difference between balusters and the balustrade. And be familiar with easements and zoning boards that may get a say in future renovations and restorations. 

On the water? Know your boat lifts and dock permits. In the mountains of Colorado, what are the fire risks, and where are the best ski lodges and stocked trout streams? If someone is going to pay a premium for high-end property features, you need to become the luxury agent who knows what they are and why (or if) they’re worth it. 

Again, social media is key to showing off your expertise. If posting to social media doesn’t come naturally, you can get thousands of real estate social media templates from Coffee & Contracts. Sign up to get new Facebook and Instagram posts designed for real estate agents for every day of the month, plus lots of bonus material to keep your social accounts fresh and engaging.

You can get started for $54 per month, which includes access to all content plus membership to the private Facebook mastermind group. As a special thank you to our readers at The Close, use promo code THECLOSE for $15 off your first month.

Visit Coffee & Contracts

5. Consider Breaking Into Luxury Leasing

Even in the luxury market, the life of a real estate agent is ruled by the ebbs and flows of those commission checks. That’s why breaking into high-end leasing can help you diversify your income stream and your network. Even though these are rentals, the value of the lease can make the financial incentive comparable to a small property in your area. 

Working in luxury leasing also lets you bump elbows with affluent clients and owners. You’ll learn about the luxury market and its clientele. These connections can be valuable in long-term client relationships and generating referrals. For example, helping a high-net-worth individual find a rental for six months in a new city when they get established will foster that relationship for both when they’re ready to settle down and buy and for referrals down the line. 

Along with establishing your network and knowledge of the luxury market, you can use luxury leasing as a stepping stone to advance into selling luxury properties. Ingratiating yourself into the culture and context of the high-end market enables you to brand yourself as a luxury agent. When clients see success in this niche, it builds your brand in a way that only experience can. Shift your mindset into positioning yourself as the luxury market expert in order to pave the way for more opportunities in the future. 

6. Solve a Problem Specific to the Wealthy

If you want to make the leap from real estate agent to luxury real estate agent, you must offer more profound knowledge and broader expertise. Here is a list of common concerns for high-net-worth individuals, which often dovetail perfectly with your real estate services.

• Real estate investing
• Legal tax avoidance mechanisms and tax consequences of property purchases
• Asset appraisal, privacy, protection, and preservation
• Insurance
• Zoning and land use
• Development
• Non-traditional banking jumbo loans
• Common property and prenuptials

Think of one (and only one) problem that a luxury client may have that you can solve. You can then position yourself as the one person in your market who solves this problem for affluent clients. Reflect on your career and experiences and ask yourself the following questions:

• What experiences, skills, and knowledge are valuable to a luxury client?
• Which luxury clients would benefit from my skills and experience?

Then, write a positioning statement to use on all your marketing. For example:

“I help high-income individuals create, acquire, and manage a diverse property portfolio.”

If you need help ensuring your online reputation reflects your specific expertise, consider Birdeye. Grow your visibility, increase your rate of review collections, and enhance your clients’ experience all from one platform. With Birdeye, your testimonials will help you shine online, increasing your chances of becoming the go-to luxury agent with your specific talents.

Grow Your Online Reputation With Birdeye

7. Teach a Relevant Course 

Once you know which specific problem you are uniquely qualified to solve, get out there and start educating your prospective clients. High-net-worth individuals may desire a deeper knowledge of real estate investing, 1031 exchanges, recent zoning changes, second home purchases, or development opportunities—and you can be the one to teach them.

Position yourself as the real estate educator and local authority by creating a 30- to 45-minute presentation or workshop. Ideally, you want to share all the ways that they can solve the problem without telling them exactly how to do it. End with a simple call to action: If they would like more information, they will need to schedule a meeting with you.

Focus on educating without getting anything in return. Even if you don’t set any meetings at first, you will eventually become a trusted authority on your chosen subject, leading to opportunities in the future.

Don’t forget to bring snacks! Offering cookies, coffee, or even wine and cheese can go a long way toward breaking the ice.

8. Master the Art of Networking & Self-marketing

In luxury real estate, your network is your net worth. Being actively engaged in the community (and business events) is crucial to building your professional sphere. Regularly attend Rotary Club meetings and perhaps join a high-end athletic club. Explore your area to see if there’s a chamber of commerce that aligns well with your real estate niche. 

Don’t forget to include private lenders and wealth managers in your network. After all, they’re often already working with high-net-worth individuals. This way, you can gain insights into the luxury market—and perhaps even referrals. Invite them to an upcoming client appreciation event to help them build their base as well. Make sure you’re building mutually beneficial relationships so you’re the go-to real estate agent for their clients. 

Remember that effective networking isn’t just about attending events, though. It’s about following up, engaging with your community, and showing genuine interest in their activities. Find ways to provide value and help them commemorate milestones in their lives like anniversaries, birthdays, and important events—a small gesture goes a long way. Strengthening these relationships can pave the way for long-term opportunities. It won’t happen overnight.

9. Level Up With Designations

If you want to become a respected luxury real estate agent, you need proof that you have the knowledge, skills, and experience to handle such an expensive asset. There are several designations and certifications explicitly designed for agents in the luxury real estate market.

• Luxury Homes Certification
• Coldwell Banker Global Luxury Certification
• Certified Luxury Home Marketing Specialist
• Accredited Luxury Home Specialist

While these won’t provide you with a luxury client as soon as you complete the course, they will provide you with a solid foundation to attract those luxury clients. Again, in luxury real estate, it’s all about networking. Clients in this space tend to value personal referrals and convey trust through connections. 

These programs often come with mastermind groups on Facebook and private referral networks. You’ll also be able to discuss market insights in depth with other agents. This continuous learning and exchange of ideas can help get your brain thinking about client acquisition. Plus, hearing success stories from how other agents broke into the market can keep your resolve going while trying to do the same yourself.

10. Understand & Adapt to High-end Client Communication

In the world of luxury real estate, speaking the language of your clients goes beyond just knowing what to say. It’s about understanding their needs, preferences, and expectations. High-net-worth individuals often have specific ways of communicating and conducting business. If you get emails or texts with just short, one-word responses, don’t take it as rude or curt. Your clients are most likely very busy people and every second counts. So it’s important for you to be able to adapt to your clients (and not the other way around!).  

With luxury real estate comes an increased potential for global clients, meaning your understanding of cultural differences is key. This means being aware of and respecting different norms, customs, and communication styles. For example, understanding the importance of formal titles and when to shake hands: Many cultures around the world shake hands when beginning and ending a conversation. Notice and study these subtleties so they don’t catch you off guard. 

While many real estate pros recommend customizing your communication methods for each client, this is a must if you want to make it in the luxury market. Some might prefer a weekly detailed email update, while others might opt for a quick text or phone call with their assistant. Pay attention to these preferences to show respect for your client’s time—and how they conduct business. 

But the most important aspect of adapting to speaking their language is listening. Understand their desires, motivations, and concerns by listening carefully to what your clients are saying. Pick up those breadcrumbs throughout the conversation to help you tailor your advice and communication and build a stronger relationship with your client.

11. Hitch Your Wagon to a Star via Co-listings

You can gain serious skills and connections by helping other luxury agents with their marketing, events, and open houses. When you can show your well-to-do peers that you are hungry, they will be more likely to take a chance on you as a referral partner when they’re too busy to give their high-end clients the attention they often demand. 

Don’t be too proud to co-list, either. If someone is too busy to take on a luxury listing, offer to jump in and do the grunt work. Half of the commission of a luxury listing is well worth it. Plus, you’ll have the opportunity to learn from a more experienced agent. It’s not just about sharing the workload—you’ll be able to gain insights into the nuances of luxury deals, from client interactions to closing the deal. 

Plus, being associated with a high-end listing will instantly build your credibility and reputation in the luxury real estate community. You’ll now be able to associate your brand with a high-end property—use this to your advantage to boost your luxury profile.

12. Mine Expired Luxury Listings & FSBOs

Luxury homes can take two to three times longer to sell than the average home because fewer people can afford them. Plus, many are custom designed and have unique features, making them more difficult to price correctly the first time. Some luxury listings can sit on the market for years and change listing agents multiple times before they sell. 

Luxury for sale by owner (FSBO) sellers can also find it difficult to attract “real” homebuyers for their premium-priced homes. This means that there is opportunity for savvy agents to prospect for both expired luxury listings and FSBOs. When I coach agents on how to get listings by prospecting expired luxury listings and FSBOs, I encourage them to present themselves as ambitious (yet professional) luxury real estate agents who offer the ultimate solution to a client’s problem. Listen to their issues and above all, be prepared to talk data. After all, there’s a reason that the first agent didn’t work out (or why they’ve decided not to list with an agent!).

13. Claim New Construction as Your Own

Hustling to become the representative for a new residential construction project is one of the fastest ways to establish yourself in the luxury market. If a developer has one project and likes the work you’ve done to sell it, chances are they’ll have another one … and then another one. 

Once again, networking is key here. Take any opportunity you can to get in front of developers and show off your skills. It might even be possible to consult on projects before they ever begin. After all, you’re the real estate expert and have plenty of knowledge about what the market will bear. It’s a mutually beneficial relationship that can grow and develop over time.

14. Dress for Success

Or should we say, dress to impress? In luxury real estate, appearances matter. Observe how your clients act and dress and aim to mirror their style—while keeping different cultural norms and expectations in mind. It’s not just about imitation; it’s about showing respect and understanding to your clients. 

However, don’t go overboard. It’s essential you stay true to yourself and your personal brand. Your clients choose you for your authenticity and expertise, so while it’s important to present yourself well, don’t spend all of your next commission check on a new wardrobe or wear clothes you don’t feel comfortable in. 

When you dress appropriately, it shows respect for your clients but also reflects your professionalism. Remember, we may be dealing with global clientele here. Whether the situation is a high-stakes negotiation or you’re showing a listing, your attire should be chosen thoughtfully and intentionally to ensure you leave a positive, lasting impression.

15. Adopt a Service Mindset

High-net-worth individuals are used to a certain level of service. Promptly responding to emails and texts and answering the phone is just the beginning. Exceptional service is all about making the client feel like they are your first—and most important—priority. 

We’re not talking about splashing out on fancy gifts or splurging on expensive meals. Showing clients you care is often about the smallest details. Remembering birthdays, anniversaries, and children’s names (and their hobbies or favorite sports teams) can go a long way. A simple handwritten note can speak volumes about the kind of agent you are. 

Too busy at the polo fields or charity auctions for handwritten notes? A service like Handwrytten crafts personalized messages and uses proprietary technology to recreate your handwriting to send a note that looks just like the real thing.

Bringing It All Together 

Becoming a luxury real estate agent sounds daunting, but in the end, it’s pretty simple. Connect with your passion. Be genuine in your pursuit of relationships and networks. Create a plan to meet affluent people who share the same excitement for luxury real estate properties that you have. Brand yourself appropriately, work hard, and provide a professional, unparalleled client experience. Take these steps and you’re already on your way to becoming a luxury real estate agent. 

Remember that, in today’s world, luxury is not strictly about price—it’s about the uniqueness of an experience and elite level of service. Do you have a way to break into luxury that we didn’t mention here? Let us know in the comment section!

Download Our Checklist

The post How to Become a Luxury Real Estate Agent in 2024 appeared first on The Close.

When I knew I needed to make a change, I had no idea which brokerage I would choose, when the right time would be, or where to start. And would people still want to work with me? That’s why I wrote this step-by-step checklist to take away the stress—so that you can focus on the excitement and growth ahead of you! Plus, I want you to feel confident that you can make the switch without losing clients. If I did it, so can you!

But let’s be honest: Getting out of our comfort zones isn’t easy. Still, nothing great comes easy, right? Let’s jump in make sure you’re prepared to make the transition to a new brokerage as smooth and efficient as possible. 

1. Make a Pros & Cons List

Remember, the grass isn’t always greener on the other side. If you are thinking about switching brokerages just to get more clients, then my advice would be to sit down with your team leader or broker and have an open conversation with them about your wants, needs, concerns, and goals. If you like the people you work with, and they can support you in achieving your goals, then it may not be time to make a change. 

But if there’s something that you know is absolutely not aligning, and you’d truly be a better Realtor and better serve your clients elsewhere, then I’d say it’s time to make the switch.

I’d like to challenge you to think deeply about why you want to make a switch. Do you want to go from being a solo agent to joining a team, or vice versa? Do you need more support, more advanced technology tools, more marketing opportunities, or more commission? Would you like to place yourself in a different location or niche area? Are your goals and direction not aligned with your brokerage or team anymore? I do believe that if you’re not growing together, then you’re growing apart.

If you find yourself having a lot of back and forth thoughts about your decision, I find it’s best to write it all down. Make a list of all the pros about working with your current brokerage, and then make a list of all the cons. Also, write down your goals for 2024! Do the targets set by your current brokerage align with your goals?

 You can find more insight on knowing when it’s time to make a switch in the article below.

2. Meet With Potential New Brokerages

Keep an open mind at this point. You need to start having these conversations before you decide whether you are making a switch. Connecting with other companies may make you realize you want to stay with your current brokerage.

In Person or Phone Calls?

Have as many in-person meetings as possible. This is a big decision, and in person is the best way to get to know what someone is like and how they run their business. If you can’t meet the actual broker in person, then try a Zoom meeting or phone call. Email is the least desirable option, but may be necessary at some larger companies. 

Meet the Other Realtors

Speaking with other agents in the brokerage is important. Get as much inside information and honest feedback about what it’s like to work there as you can. Ask how long they’ve worked there and about their pros and cons in terms of the brokerage. Also, meet with the team leads in the brokerage—even if you are not joining a team—as well as any other employees they may have (transaction coordinators, office managers, and coaches).

3. Meet With Your Current Brokerage

If you’ve found a new company with more pros than cons, it’s time to share your decision with your current brokerage face to face. I know this can be nerve-wracking, but take a deep breath, and feel confident about your decision. I promise they will respect you for speaking with them in person. 

Don’t Burn Bridges

When giving notice, be honest and open. Thank them for the prior opportunity to work with them. My team lead ended up telling me that I was always welcome to come back if I wasn’t happy with my decision, and so I still have a good relationship with those team members. 

While you do want to be honest about why you’re moving on, there’s no need to burn any bridges. You never know when you could come across an opportunity to work with them in the future. What if they have a home listed that your client is interested in? You’d want to be on good terms, right? 

Deals Currently Under Contract

During this time, you will also discuss details of deals you may currently have under contract or listings that haven’t sold yet. Your contract with your brokerage or team should include details on how these situations will be handled. They differ from brokerage to brokerage, but it’s best to talk them through during this discussion to make sure that everyone is on the same page. Here are some important questions to ask:

• Will my current listings stay with the brokerage, or will I take them with me? If they stay with the current brokerage, you may just be able to continue selling as normal and keep your regular split upon closing. If you were to take it with you, you may need to give a referral fee to your current brokerage. 
• What kind of referral fee will I pay my team lead or broker if a lead from their database calls me to take care of them? It may be tempting to keep this quiet, but if a client from your old database calls you, tell your old broker or team lead right away! 
• How will my sphere-of-influence contacts be handled? Be sure that your personal contacts will be exported and sent over to you in some format that will allow you to take these clients with you. Also, confirm that they will be deleted from any previous drip campaigns or brokerage marketing emails.

Again, these terms all differ from brokerage to brokerage. And you all may decide that another plan outside of those terms will work best for a particular situation. From my personal experience switching brokerages, the deal that I had under contract just stayed and closed with my old brokerage, and they mailed me the commission check as normal. Honestly, the most important part for me was that my clients didn’t feel any shift or lack of care during my transition. 

4. Make It Official

Congratulations on completing (what I think is) the hard part—now onto the paperwork! Here’s a checklist of the little things you’ll need to take care of at this stage:

5. Switching Out the Swag

You will need to give any items you may still have back to your old brokerage, and yes, this includes the lockboxes you forgot you had in the trunk of your car. Don’t forget open house signs, for sale signs, swag, postcards, etc. 

The exciting part is ordering new items! You’ll need new sign riders and swag. If your brokerage doesn’t provide lockboxes, then go ahead and purchase one to prepare for that new listing you’ll be getting soon. Again, this will vary from brokerage to brokerage. Some may provide these items, and some may not. 

6. Schedule New Headshots

There’s something about taking your new headshots that really makes it all feel real! If your brokerage doesn’t have a photographer that they already use, then I recommend asking someone who knows you and can bring out your confidence. Make sure to wear a color, style, and fit of clothing that is going to make you feel your absolute best. Or choose a color from your new brokerage brand colors. If you’re not sure what to wear, then you can hire a personal stylist to help!

7. New Email Signature & Business Cards 

Once you have your new photos, you can order new business cards! If you don’t want your photo on your cards, then you can go ahead and order them back in step five. You can also use your new headshot to set up your new email signature and social media profiles.

8. Finally, Let’s Get Social!

Now for the most fun part of your big transition. You can go ahead and make that social media announcement that you have joined a new brokerage! Of course, you can post stories throughout your entire journey, building excitement in real time and sharing behind-the-scenes footage. But below I’ll give tips on making official announcements over multiple social media platforms.

If you want to use my version as a jumping off point for writing your own, here’s a template you can copy, paste, and edit in Insta:

copy to clipboard

I am ecstatic to join {new brokerage name} and continue my growth as a Realtor!

So grateful for the people that have helped me get here and extremely thankful for the people that are providing new opportunities.

Consistent growth personally and professionally is what it’s all about! This is what allows me to provide clients with the absolute best experience possible.

I’m here and ready to help you with all things REAL ESTATE. Don’t hesitate to reach out!

The Close Recommends

If you’re not sure how to make a big splash with your announcement, check out Coffee & Contracts. They have templates for all kinds of common situations in real estate, including telling your sphere about your big move.

Check Out Coffee & Contracts

9. Set Up Your New CRM

Typically, brokerages already have a customer relationship management (CRM) platform for you to use, but if for some reason they don’t—or you want to use a different one—there are a ton of good options available out there!

As soon as you’re logged in, start building your new CRM! Import your existing list and add in as many family members, friends, business partners, or anyone else you can think of that you had put off adding in to your old CRM. This is a very important step to building your foundation at your new brokerage without losing clients or prospects. 

10. Email Announcement 

Use your excitement to get others excited about their real estate goals! Now that you’ve got your sphere in your CRM, it’s time to send out an email announcement about your big move.

I’d recommend a short introductory video, with a written-out email below it, and a link to your new website. Try to keep the video portion under one minute. Your CRM program should have a form of email blast marketing template, but if it doesn’t, then you should use a program outside of your CRM that is video-friendly!

11. Get to Know Your New Tribe

Time to get to know your new fellow Realtors, if you don’t already! Join your new brokerage text message groups, Facebook groups, team meetings, and happy hours as soon as possible. This is your new tribe, and it will make for a smoother transition for you if you feel connected!

12. More Social Media Announcements

Keep the excitement going! Create another social media post announcement and make it a fun reel or video this time. Below is a boomerang reel I posted on Instagram when I received my new brokerage sign riders. I shot it in my new office (to the song “If You Need Me, Call Me”). This could also be a video of you showing off your new business cards. Get creative!

13. Go Make It Happen, Captain

Now that you’ve completed all the steps and you’re settled into your new brokerage, it’s time to get to work! I believe that you’ll be able to help even more people in the new year than you did the last. If you make a shift the right way and for the right reasons, you’ll soon see that you didn’t lose any clients from making the switch, and you’ve actually gained even more.

14. Pop the Champagne

Oh, yeah: Don’t forget to pop the champagne and celebrate your accomplishments. Congratulations, you did it!

It’s important that you don’t underplay this moment in your mind. What you just accomplished is hard! I realize what it takes, and empathize with you on the pain points of making the change. It can feel as if you’re having to start all over again in a way. But let me remind you that you aren’t. All of your experience that has gotten you to this point will remain as your foundation.

It can also be a daunting thought to have to make the time to switch all of your marketing, complete the paperwork, and so on. But I hope this article challenged you to change your perspective and think about it as an investment of your time in order to create a larger return on investment than you are currently seeing. 

When I made the switch, I struggled with the idea of potentially losing my clients and the connections I had built. But after making the switch to a new brokerage a year ago, I have found that people actually never associated me with the brokerage I was with—they simply want to work with me because they like who I am as a person and they trust me.

I’ll leave you with two of my favorite quotes for inspiration as you start your journey ahead.

• “If it doesn’t challenge you, it won’t change you.” – Fred DeVito
• “If it’s both terrifying and amazing, then you should definitely pursue it.” – Erada

The post How to Switch Real Estate Brokerages in 2024 (+ Template & Checklist) appeared first on The Close.

While I’ve since moved on to a management role at Keller Williams, that brokerage is still one of the fastest-growing real estate brokerages in Colorado, and adds an average of 40 new agents every year. The biggest lesson learned: You must have a strategic plan and know how to recruit real estate agents. This article covers my strategy for poaching producing agents from other brokerages, as well as some retention strategies to help build on your recruitment success.

Why You Need a Plan for Recruiting Real Estate Agents

Over time, all teams and brokerages will lose agents. Attrition in this industry is inevitable. The National Association of Realtors (NAR) reports that the median tenure of Realtors at a brokerage is just six years. But fewer agents in your brokerage means lower potential revenue, and reduced revenue means fewer services available to your remaining agents. Even if you only want to add two or three agents a year, you need a viable recruitment plan.

Recruiting the right way means building relationships. Creating trust and showing your recruiting prospects that you care ensures that you attract the right agents. It also increases your chances of retaining agents after you have invested a lot of time and money in onboarding and training them.

How to Identify the Ideal Agents to Recruit 

Before you make a recruiting call or send an email, identify what type of agents you need in your organization and make a plan for how you will support them. Agents in different phases of their careers have different needs. Let’s look at strategies for both new agents and top producers separately.

Finding & Recruiting New (or Newer) Real Estate Agents

You can get in front of prospects who aren’t licensed yet early by placing ads on employment websites like ZipRecruiter, Indeed, Career Builder, and Craigslist. You can direct high-funnel candidates to your favorite real estate licensing school when they reach out. Keep in touch so they are sure to interview with you once they earn their license.

Find lower-funnel leads by contacting local real estate schools and asking them if you can introduce your team or brokerage to their classes. They will usually ask you to bring lunch or snacks for the students in exchange for a 15-minute presentation.

If you want to recruit brand-new agents, ZipRecruiter is the way to go. It’s the number one rated job search app on both Apple and Android devices, which means you’ll cast the widest net possible for new talent.

Visit ZipRecruiter

How to Support New Agents

If you plan to recruit brand-new agents or ones who have only sold a few homes in the past year, be prepared to spend a lot of time training them in marketing, buyer and seller presentations, managing a database, and writing and negotiating contracts.

If you choose to hire more than a few new agents at a time, you’ll need a designated mentor or trainer and a detailed educational program at your brokerage. Otherwise, their needs will impact your personal real estate production. In short, if you don’t have the resources to train new agents, don’t recruit them.

Finding & Recruiting Producing Real Estate Agents

If you’re recruiting top producing agents (typically, those who sell more than 30 homes a year), you need their contact information and an idea of their production levels. Assuming they’re active in your area, you can see what they’ve been up to by manually searching your multiple listing service (MLS). Most MLSs offer the ability to search closed transactions.

Begin with a search of recently sold homes in your target territory. Download the list and sort by the listing agent’s name, which shows how many closings each agent has had in your area. For example, in a sample search of 1,500 closed transactions, I identified more than 100 producing agents in my territory—great potential leads who sold two or more properties in the past six months. 

You can also find producing agents in just a few clicks with recruiting software like BrokerMetrics. BrokerMetrics starts at $200 a month for the basic tools. In addition to agent production and contact information, BrokerMetrics can also provide market share and trend reports.

How to Support Producing Agents

Producing agents are the easiest agents to manage but also the easiest to overlook—which makes them susceptible to getting poached by other brokerages. You’ll need to provide them with a good website, an excellent customer relationship management (CRM) tool, lead generation support, and a sense of community.

Attracting, Recruiting & Retaining Top-producing Real Estate Agents

Opportunities

This one varies depending on the person. For top producers, opportunity could mean a leadership role, impressive title, learning something new, or accessing better training or mentors.

Recognition

Some top producers (like me!) thrive on the approval of others. And believe it or not, many companies aren’t good at giving credit or recognition. But, because top producers typically invest more time and money into their businesses than other agents, helping to grow your brokerage brand, I believe they deserve special treatment.

You don’t need to kiss their butts; they just need to feel appreciated. Create unique, exclusive experiences like inviting them to sporting events or on vacations. I once took my top agents to see Tony Robbins in Palm Springs. They still talk about this trip 17 years later.

Compensation

Many top producers negotiated their compensation plan long before becoming top producers. Think Steph Curry and his rookie NBA contract. Now they’re MVPs who are paying a large share of their commissions to their brokerage and are looking for a better deal. 

So great! Poach top producers by creating an advantageous split just for them, right? Wrong. Changing your compensation model to accommodate a top producer could lead to resentment among other agents on your team and divide your brokerage.

Instead, build your team or brokerage compensation plan to attract financially conscious top producers. If you already have an established compensation model, consider offering an upfront signing bonus.

Marketing Tools

If you want to keep your producing agents from jumping ship, investing in a top-shelf website can have an outstanding ROI. Trusted by Real Trends award-winning teams like the Oppenheim Group, Agent Image websites offer stunning design and state-of-the-art digital marketing services that can give boutique brokerage sites a run for their money. Click the button below to get 20% off.

The Best Scripts for Recruiting Real Estate Agents

If you only learn one thing about recruiting scripts from this article, it should be this: The best script is the true script. So get very clear about who you are and are not. 

If you are a top-producing team that wants to build your brokerage brand, make that clear in your script. You might not appeal to a top producer who wants to grow their own personal brand, but you will attract mid-level agents who want to be part of something exciting and who aren’t concerned about being the top dog.

The key to recruiting success is not to get appointments with everyone with a real estate license. You want to find the right candidates to join your organization. Think of your scripts as a means of weeding out the agents who don’t fit your goals and culture. With this in mind, here are the most effective scripts I have used to recruit producing agents to my brokerages.

The Best ‘New Office in the Area’ Recruiting Script

Once you’ve gathered a list of recruiting leads using the MLS or BrokerMetrics, use this script when you reach out to them. The secret to success with this script is to start with curiosity in your voice.

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Hello {agent name}. This is {your name} with {team or brokerage}. I see that you have recently sold {number} homes in the {specific location} area. Do you specialize in {that location}? Are you looking to do more business there?

If they say yes, shift your voice to excitement!

Great! The reason for my call today is that we recently opened a new office in {location}, and we are looking to invest in a few agents to help them grow their business. Would you like to have a conversation about that? Are you available at {time/day}?

Many recruiters would say that this script is too direct. But that’s just because companies often reward recruiters for the number of appointments they set and not the quality of the lead or conversation. 

Another concern I hear with this script is with the word invest. Recruiters say things like, “I don’t have money to give them” or “We don’t buy agents.” But there’s no need to be so literal. You can devote your time to mentoring them, provide extra leads, or pay out financially. However you choose to invest is up to you.

After all, if you don’t plan on investing in agents in some way, you are going to have a hard time recruiting talented agents and retaining the ones you have.

The Most Effective Area Specialist Recruiting Script

Use this script with agents working in a specific community, neighborhood, or town. Begin by paying attention to their advertising on Facebook, newspapers, and listing signs. When you see an agent who is marketing a unique message or new listing, contact them with the following script.

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Hello {agent name}. This is {your name} with {team or brokerage}. I saw your {listing ad or marketing campaign} and I was impressed by {the message, quality, or professionalism}.

Wait for a response.

I see you have a listing in {specific location}. Do you sell most of your homes in {specific location}? Are you interested in getting more listings in {specific location}?

Wait for a response.

We are also looking to grow in {specific location}, and we are looking to invest in a few agents to help them grow their business there. Would you like to have a conversation about that?

Wait for a response.

Are you available at {time and day}?

This is one of my favorite recruiting scripts because it works on Facebook Messenger, text, and even on Slydial, as long as you are honest and transparent. 

Best Script for Social Media Intros

Sometimes the best way to connect with an agent is through Facebook, Instagram, or LinkedIn. I recommend spending some time following the agent you’ve targeted for recruitment and like and comment on their posts. After you’ve become a familiar presence, send a direct message (DM).

DM After They Post Something Creative

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Hey {agent name}. I saw your post on {social media platform}, and I was impressed. I love creative social media marketing ideas. I have some creative marketing ideas of my own that I would be happy to share with you. Would you be interested in meeting to discuss?

DM After They Post a Listing Ad

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Hey {agent name}, I saw your ad for your {listing address} on {social media platform}. What a great listing! Do you sell most of your homes in {area}?

Wait for a response.

We are looking to invest in a few agents to help them grow their business in {area}. Would you be interested in meeting to discuss?

The Best Networking & Seminar Recruiting Scripts

Holding events and seminars is an outstanding way to attract learning-focused real estate pros. These agents are likely either newer to the business or mid-level agents looking for new ideas.

• Keep it small, and don’t hold it in your office. Agents will be intimidated to come into the lion’s den.
• It’s best practice if you present the information or host the panel, which positions you as the expert … everyone wants to know the expert.
• Trendy topics work best, like social media strategies (especially TikTok), paid Facebook Ads, business planning, and cryptocurrency.

Here is the script I use to get real estate agents to my events:

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Hello {agent name}. This is {your name} with {team or brokerage}. The reason for my call is {vendor} and {team or brokerage} is holding an event for real estate agents called {event name}, where we will go into detail about how to {specific goal}. Are you interested in attending?

Wait for a response. If they are interested, they will ask what day and time the event is.

The event is on {date and time} at {location}. It is limited to {number} agents. Can I mark you down to hold your seat?

The secret to successfully recruiting at events is conversion. Think of your event like a lead magnet on your website. You need to offer something attendees want, but your end goal should be to convert them into recruitment leads.

The event is mainly for you to build trust through familiarity. The agent sees you at an event, then later sees you at an association meeting, and when you later call them to have coffee, they are more likely to listen to your recruitment pitch.

Try the Columbo Script

You may remember the TV detective series “Columbo,” where the main character would say, “Just one more thing…” before revealing the secret that solves the mystery. Add this to the script above to build anticipation.

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I am hosting this event because I am looking to grow my brokerage in {location} and want to {result you want to achieve}. I am looking for agents who want to {result you want to achieve} as well.

Just one more thing… If you want to be more effective with {the event topic}, then approach me afterward for a {script, template, or worksheet}. This will help you achieve {the result you want to achieve} faster.

The Best Script for Recruiting Top-producing Agents

A recruiter’s greatest challenge is signing top-producing agents because their usual techniques often don’t resonate. That’s because successful agents usually have their own processes and systems, a great personal brand, and tons of business.

Top producers are attracted to three things: opportunities, recognition, and compensation. As such, the secret to recruiting them is providing the special treatment they’ve earned. Be direct, clear, and concise. Either pick up the phone or walk into their office. An email or text doesn’t work for this script.

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Hello {agent name}. This is {your name} with {team or brokerage}. You may not have heard of me, but I sure have heard of you.

The reason I am calling you today is to invite you to an opportunity that is only available to a select few top-producing agents like yourself. Are you available {date and time}?

Pause. They will probably ask what the opportunity is.

This is an exclusive opportunity, and due to privacy reasons, I can’t share with you specifically what it is. But I can tell you that it’s limited, it’s real estate-related, and it’s a once-in-a-lifetime opportunity. Can you make it on {date and time}?

At this point, they will reluctantly agree to meet or politely reject your offer.

I am sure you are wondering what the opportunity is, right? That’s completely up to you to decide. Offer the opportunity to meet someone influential in the industry, get in on a new development, or join your organization on the ground floor before it reaches the next level. Whatever you decide, this script will help get them in the door.

Recruiting Real Estate Agents: How to Handle Common Objections

No ultimate guide to recruiting agents would be complete without addressing the common objections real estate agents present and how to counter them. Remember, you’re playing the long game. It’s important not to burn relationships by being too pushy. If you overuse objection handlers, you can come across as insensitive. The secret to responding to objections is to listen and be empathetic.

I’m too busy to move at this time. 

Honestly, as a successful, busy agent, there is never a good time to make a move. The good news is we can help make the transition easier. The sooner you can make the move, the sooner we can implement your new plan.

I am loyal to my broker or office. I’m happy where I am.

I respect the fact that you are loyal. In fact, that is exactly why I am interested in working with you. But let’s be honest, if you were getting the support you needed, would you even be talking with me right now?

I don’t want to leave my colleagues.

If I could demonstrate that we are not only a good fit for you, but it would also be good for them, how would you feel about bringing them by to meet me?

I don’t want to deal with the hassle of changing companies.

I understand completely. Many busy agents who have already joined us had the same concern. That is why we help you with the process. Let’s go over our brokerage’s transition plan together.

I don’t know how I can support myself without the leads my broker gives me.

What percentage of your leads are coming from your company? What is your split on those leads? If I can show you how to generate more income without having to be handed leads, would you look at joining my team?

Your company costs more than I pay now. 

To make more money, you must increase revenue, not simply cut your expenses. It doesn’t matter if your expenses are $0 if you’re not generating enough income. I will show you how to make enough money that the additional expense won’t matter.

I think I can sell more homes if I stick with a better-known company.

NAR statistics show that consumers choose an agent because of the company only 5% of the time. So if we can show you how to increase your business by 20%, would you be OK with a lesser-known company?

Recruitment Lead Nurturing

Effective recruitment (done the right way) is about building trust through open and honest communication. This takes time. Recruitment leads need nurturing just like prospective clients. Make an effort to recognize your prospects and their hard work so that when you’re ready to make your pitch, you already have a warm relationship.

Here are some examples of professional ways to reach out. You can send these notes through social media, email, text, phone calls, or voicemail. 

Congratulations on an Award

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Hi {agent name}, I wanted to be one of the first to congratulate you on winning the {name of award}. It’s a real honor and recognition for your hard work and integrity. Our industry needs more {agents or brokers} like you.

After Meeting at an Open House

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Hi {agent name}, just a quick note to let you know how much I enjoyed meeting you at your recent open house. I’m hopeful that one of our buyers will be a good fit for the property and will connect soon to schedule a showing. I look forward to working with you more in the future.

Congratulations on a New Listing

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Hi {agent name}, I just wanted to send you a quick note of congratulations on your new listing at {address}. It’s well priced and professionally marketed. We’ll do our best to get one of our buyers on it quickly. Again, great job, and I hope we work together on this one.

Thanks After Cooperating Sale

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Hi {agent name}, I’ve been hearing from {cooperating agent name} about how well the closing went on {property address}. I just wanted to thank you for your hard work, expertise, and professionalism. Please know that your exceptional dedication has not gone unnoticed, and we look forward to many more deals together.

Key Takeaways: Recruiting Real Estate Agents to Your Team or Brokerage

All teams and brokerages face attrition. Losing agents over time means you’ll need a plan for recruiting real estate agents to maintain market share. Ultimately, your success lies in your ability to clearly communicate the services your team or brokerage provides to the right type of agents.

Your script is the first step in narrowing the field of agents in your territory. A good script is direct and to the point. It attracts or repels, allowing you to quickly sort the real estate pros who are a good fit from the agents who are not.

Bringing It All Together 

I hope this guide helps you become successful in recruiting agents to your team or brokerage. What are your secrets to recruiting real estate agents? Let us know in the comment section.

The post The Ultimate Guide to Recruiting Agents for Your Team or Brokerage (+ Scripts) appeared first on The Close.

Luckily, real estate coach Trevor James and I are here to help. In this article we’ll walk you through the nine skills we learned to build our own careers in real estate. We’ll also show you a few underappreciated skills managing brokers we know are looking for this year.

1. Resilience

With inflation hitting a 40-year record high and a recession looming, succeeding as a real estate agent in 2023 is harder than ever. The one skill that can predict success in today’s market better than any other is resilience—aka the ability to bounce back quickly after rejection and failure. Also referred to as grit or conscientiousness, resilience is fast becoming the most important skill brokers look for in new agents.

How to Build Resilience to Upgrade Your Real Estate Career

2. Communication Skills

We’ve all heard the saying, “communication is key.” This rings especially true in real estate, because every client is different. Luckily, communication skills are easier to build than resilience—you just need to learn to be a good listener. Ask questions and be curious. Don’t be distracted by your phone or the emails coming in while you’re with a client. There’s a time and place for virtual communication—if you’re face-to-face, make the most of that gift and be present. 

A customer relationship manager (CRM) can help you stay in consistent communication with your clients. If you’re not operating your business with a CRM to stay on track, you are doing yourself and your clients a disservice.

How to Build Your Communication Skills

3. Negotiation Skills

Since both buyers and sellers have access to more information than ever before, negotiation skills are becoming increasingly important for real estate agents. The crucial lesson to remember about negotiating is that your goal is not to win, but to get a deal done. To do that, you will have to come up with a solution that will satisfy both the buyer and the seller. Of course, you also need to remember that the agent you’re negotiating with might be someone you will need to maintain a professional relationship with in the future.

How to Build Your Negotiation Skills

4. Short-form Video Skills

Over the past few years, we’ve watched the length of videos that do well on social media shrink from 10 minutes to five minutes, and recently, to about 30 seconds(!) on apps like TikTok. While this may sound like good news for agents who hate making long videos, the truth is that the shorter your video, the harder it is to educate or entertain your audience. This means sharpening your short-form video skills can make you a more attractive candidate for top teams and brokerages in 2023.

How to Build Your Short-form Video Skills

5. Teamwork

If you ask anyone who thinks about the real estate industry for a living, most of them will tell you the days of the lone-wolf agent are quickly coming to an end. The National Association of Realtors’ 2023 Member Profile noted that nearly one-fifth of members, or 17%, belong to a team. Teamerages—hybrids of teams and brokerages—have also been crushing it.

How to Build Your Teamwork Skills

6. Creativity

Like resilience, creativity is another skill that has become more important for agents over the last few years. When things change fast, you need to innovate to keep up. Whether it’s chopping your YouTube videos into short-form clips to use on Instagram Reels or hiring a hot dog truck to drive traffic to your open house, creativity is fast becoming a crucial skill for real estate agents.

How to Build Your Creativity Skills

 7. Data Analysis

When it comes to access to information, buyers and sellers can’t hold a candle to the reams of data available to real estate agents these days. If you want to know more about pretty much any aspect of your local market, chances are you can find a service to provide it for you—often for free. That means agents who develop skills to analyze data will have an edge over those who don’t.

How to Build Your Analytical Skills

8. Empathy

Empathy might seem like a straightforward skill, but ask any agent and they’ll say the toughest part of the job is dealing with clients. People don’t always know what they want, and for many folks, buying a home is just as much of an emotional decision as it is a financial one. You’ll also be dealing with many people’s private lives. 

Moving is stressful, and it’s often done for a reason. Your clients may be grappling with their own feelings during the process, and it’s your job to walk them through it with ease and grace.

How to Build Your Empathy Skills

9. Patience

This last skill might seem a little odd for a fast-paced industry like real estate. But it takes time and hard work to build every single skill we’ve outlined so far—and you need to stick with it until it pays off. 

This applies to soft skills and hard skills. Whether it’s cold calling or Facebook advertising, patient agents win the day. Selling homes is a long cycle, and there is a lot of ground to cover before you receive your commission check. Patient agents are successful agents.

How to Build Your Patience

Over to You 

Which skills have served you well in your real estate career? If you’re a leader in the industry, what skills do you look for in your new agents? Sound off and let us know in the comment section below.

The post What Brokers Want: 9 In-demand Real Estate Agent Skills appeared first on The Close.

Let’s take a look at the three most successful real estate team models so you can make an informed decision and build your own multimillion-dollar team. 

But if you’re already itching to make your first hire to start building your team from scratch, I recommend ZipRecruiter, an all-in-one app for recruiting and hiring both agents and support staff. It’s the number one rated job-seeking app on Apple and Android, which is helpful when you’re looking to cast the widest net and find hidden talent.

Visit ZipRecruiter

The Best Real Estate Team Structures for 2023

Before deciding which real estate team model is best for you, you have to understand the financial risks, difficulties, and potential outcomes of each one. Traditionally, the three most successful real estate team models include the mentor-mentee model, the team leader model, and the lead team model. Here’s a quick comparison of each structure:

As we dive into each of these models in greater detail, think about your motivations for starting a team, the strengths and weaknesses you bring to the table as a leader, and your expectations for the local market in the coming year. These individual circumstances will help you craft a structure that will work well for your particular situation.

1. The Mentor-Mentee Model

If you are looking for a low-cost, low-risk real estate team structure, look no further. In this model, you mentor newer agents into the business in exchange for a percentage of their commissions for a specific period (typically 12 to 24 months). After that, the new agent will leave the team and pursue their solo real estate career. 

As the mentor, you provide structure, set expectations for success, and answer questions. However, you are not providing leads, paying for marketing, or managing team members. This is a common real estate team model for brokerages that offer revenue sharing from their multilevel marketing (MLM) or downlines, like Keller Williams, Exit, and eXp.

Organizational Chart

As you can see in this chart I created for my personalized coaching business, 16 Strategies, the organizational model is simple. As the mentor, you recruit new team members to your brokerage, train them to be successful, and then you transition them into your downline. To maximize your downline further, teach your team members to do the same. This will grow your downline exponentially and provide you (and them) with long-term residual income.

Lead Generation Strategy

The objective of the mentor-mentee model is to teach new agents to fish (sure, a bit of a cliché—but when it works, it works). They pay you a portion of their commission for access to your lead generation knowledge and experience, not for actual leads or marketing. As a mentor, you can teach outbound prospecting, sphere of influence (SOI) calls, strategic planning, and even how to host an effective open house.

Services & Expectations

Mentors and mentees set their own individual goals. Ultimately, you want your mentees to be successful, so you’ll want them to keep all clients and leads they generate while on your team.

You may choose to provide administration or transaction coordination services, but it’s not required. Team members are responsible for their marketing and advertising. Remember, the value of your team is your time and training, not the resources you are providing. 

Team member retention is intentionally low because it purposefully moves new agents into solo production. When your mentees transition into your downline, you receive a portion of the brokerage’s revenue or profit generated from that agent’s transactions, even after they leave your team. However, this long-term income only accrues if you’re part of a brokerage with an MLM commission structure.

Splits & Costs

This real estate team structure teaches its members to become independent agents. Junior associates are responsible for all the expenses associated with being an agent, including marketing, office costs, MLS fees, and brokerage split.

The splits in this model are lower for you than other real estate team models because you are not paying their expenses. Therefore, you can only expect to get between 10% and 30% of their commissions.

The mentee should receive at least 50% of the total commission after the brokerage takes its portion and the split is paid to you. This ensures that your team member makes enough money to stay in business.

Is This Team Structure Right for You?

If you like to teach, are part of an MLM-style brokerage, and want to produce a continuous source of productive agents to fill your downline, this is a perfect model. 

However, if you are not building a downline at your brokerage, think twice about this structure. Inherent turnover means you are constantly training new agents, taking time away from your production. You might find that the small portion of commission you earn for training a new agent doesn’t compensate you for the time you could’ve been making sales.

2. The Team Leader Model

The team leader model is centered around actively promoting the team leader or their brand. This traditional real estate team structure also often focuses its efforts around a neighborhood or community.

As the team leader, you provide structure and resources to team members, and team members promote the team leader’s brand, not themselves. Because you’re building a brand around a specific community, high standards and unmatched customer service are essential.

Organizational Chart

The team leader model is divided into operations and sales. The team leader is typically the lead listing agent, and team members take on showing-agent roles. The sales side of the organization may also include a telemarketer and a second listing agent.

On the operations side, this team structure requires at least one employee and one business manager, but is most effective with an additional marketing manager and transaction coordinator.

Lead Generation Strategy

As the team leader, you set lead generation goals, team member expectations, and standards. You are also responsible for leads for the team. Client referrals are the secret to success, so maintaining relationships and providing unmatched service is crucial. Keep lead generation costs low so you can spend those savings on making your client experience second to none.

This structure works best when targeting specific areas, but it can be expanded upon once it’s established and successful. Dawn McKenna (pictured above) is a great example of how a top producer in Chicago expanded her team to the surrounding suburbs and then all the way to Naples, Florida.

An all-in-one platform like CINC can make targeting leads in specific areas easy. Unlike most IDX websites, CINC’s lead generation technology helps you generate hyperlocal leads from specific neighborhoods, school districts, or even gated communities. Once your new site captures a lead, CINC uses AI lead nurturing trained by top producing agents to get them out of your CRM and into your agent’s cars.

Lead Ownership

You may, at times, feel the need to allow the team members to retain clients after closing. But don’t—this could be a huge mistake! You took the time to create the team, assumed the risk of hiring employees, and covered the operational costs. Therefore, every client should remain a client of the team, not individual agents. 

This ensures that if and when a team member leaves, the lead will continue to be marketed to by the team and not by the former team member. This must be clear in writing when inviting a new member onto your team.

Services & Expectations

Since this real estate team model is based on maintaining a high level of customer service, you’ll want to provide full-time administrative support so the rest of the team can focus on sales activities. You should also provide all marketing materials to ensure brand quality and uniformity. 

How to Set Expectations & Reduce Turnover

Team members should have specific weekly or monthly productivity goals around number of contacts, leads, contracts, and closings.

Generally, team members should produce four to six transactions their first year and eight to 12 transactions thereafter. Half of their business should come from their sphere of influence, while the other half will come from team lead generation activities.

This real estate team structure should have higher retention rates, as long as you’re carefully hiring for a team’s cultural fit. But if a team member fails in customer service or has a poor attitude, it reflects on you and your brand. “Hire slow and fire fast” should be your motto for this team model! 

Splits & Costs

Member splits are typically 50-50 or 60-40 (with 40% going to the team), depending on the source of business. You might give a larger split if the team member provided the lead from their sphere. 

Remember that your split must be enough for you to provide support and marketing for the rest of the team. If your split is too low, you may end up using your entire commission income on expenses.

As far as costs go, team members should be responsible for their phones, cars, and National Association of Realtors (NAR) dues. However, depending on the percentage of commission you take, you may choose to cover some common business expenses, like office bills, errors and omissions insurance, business cards, MLS dues, and lockbox fees. 

Is This Team Structure Right for You?

This is an excellent real estate team structure for someone with an established brand (or someone who has a strong vision for building a brand). You’ll also need high standards, enjoy working with others, and have proven techniques that generate business. Setting expectations is essential, as is selecting the right team members.

However, there are some challenges with this team structure. For example, if you don’t take the time to appreciate your team members, it could lead to resentment and jealousy. To have long-lasting success, you will need to check your ego at the door. Don’t let emotions cloud the bigger picture: total community dominance!

3. The Lead Team Model

Similar to the previous structure, the lead team model is divided into sales and operations but further distributes salespeople into two halves:

1. Inside sales: On the operations team, they deal with inbound leads, follow-up, and prequalification.
2. Outside sales: On the sales team, they handle showings, negotiations, and contracts.

This real estate team structure is expensive and requires high transaction volume to keep the machine moving. It’s the riskiest to operate, but when done correctly, there’s absolutely no limit to your success.

Organizational Chart

This model is operations-driven, not sales-driven. The operations team oversees sales, instead of the other way around. It’s essential to have both a business manager for operations and a lead listing agent for the sales team.

The inside sales team on operations follows up on leads from your advertising efforts and ensures lead qualification and assignment. The outside sales team is responsible for showings, negotiations, and contracts. 

Lead Generation Strategy

The lead team model’s primary source of lead generation is advertising, which is expensive. You could easily start off paying $500 a month and eventually scale up to more than $20,000 monthly. Your advertising budget should include sites like Zillow and Google, or lead acquisition platforms like Zurple, BoomTown, and kvCORE (see my kvCORE review here).

If you prefer prospecting, your team can reach out to expired and FSBO leads using software like REDX and Landvoice. Just keep in mind that the cost and strategy of lead generation for the entire team is your responsibility.

Services & Expectations

Expensive lead generation products and tight profit margins mean you need to have higher expectations of team members and create rigid daily or weekly milestones that must be met. It’s reasonable to expect each team member to close a minimum of one transaction per month, with a stretch goal of three. 

Turnover in this structure can be higher than with the team leader model. To protect your brokerage, be sure to write into your team agreements that clients remain with the team if an agent leaves. 

Splits & Costs

Because this real estate team structure is high volume and heavily reliant on systems (not skills), it’s pretty ideal for brand-new agents. 

As you hire, look for team members who are highly driven and looking for the right opportunity. You may want to consider covering some of their administrative costs, like MLS and NAR dues, so they can focus on your leads instead of taking a part-time job.

Inside Versus Outside Sales Compensation

Be sure to comply with state employment requirements, including minimum wage, tax withholding, and whether certain team members should be classified as employees or independent contractors. NAR’s legal team put together a useful FAQ on this topic.

Outside salespeople should receive 25% to 30% of the commission or a flat fee of $800 to $1,500 per closing. This may seem low, but remember that the outside salesperson doesn’t have any expenses. Nor do they handle the lead acquisition, manage the lead once it’s under contract, or assume the financial and legal risks that you do.

With this setup, they could easily build up to three to six transactions a month and make $40,000 to $60,000 their first year. You should compensate inside salespeople with an hourly rate plus a bonus for appointments set or successful closings. 

Is This Team Structure Right for You?

If you want a large real estate team, but don’t want to embody a brand or meet with every client, this is perfect for you. The lead team model operates on systems that can manage hundreds—if not thousands—of leads every month, which means you can build a scalable business that can generate millions in commissions. 

However, you will need significant startup capital. This is the most expensive of all the models to set up and operate, so there is substantial financial risk if you don’t get it right. The most common mistake is overpaying team members. Because the advertising costs are so high for this structure, the margins are just too thin to overpay your team.

FAQs

Once relatively rare, teams have really become the backbone of our industry. Now that you have a better sense of the three most successful team models, let me address some other common questions I get about real estate teams, and take a look at what real estate teams look like in 2023.

How do you know it’s time to start your own real estate team?

What are some other real estate team roles?

Should new agents join a team?

What does being part of a team mean in 2023?

Bringing It All Together

There are thousands of successful real estate teams across the nation, and each has its own unique structure. The three I outlined here are among the most common models, and if you follow my advice, they will give you the best chance of success in building a successful real estate team.

Know of a real estate team structure that we overlooked? Let us know in the comment section!

The post 3 Foolproof Team Models: Hiring, Splits, Lead Gen + More appeared first on The Close.