The Secret To Building An Effective Real Estate Team
Making an effective real estate team means taking into consideration various factors including hiring, team structuring, leadership, compensation, motivation, training, budgeting and lead generation according to Jeff Adams, the real estate expert.
Why Should You Build A Real Estate Team?
Reasons for building a team could include dramatically increasing production and income, providing better customer service or even in order to delegate some duties to other people, for more personal time. Real Estate Agents sacrifice a lot in form of relationships with family and friends, personal time, health or even compromising factors in their business like customer service.
Such sacrifices make an agent hit the natural ceiling beyond which they can no longer expand without making changes, since they cannot handle any more deals than they already have.
This leads to a repetitive trend of having booming business, then no business, then back to booming business and so on. Making a breakthrough past this ceiling involves making changes and that is often risky but it pays off, one must be willing to fail multiple times in order to learn and acquire real estate success. This leads to a habit of becoming uncomfortable until it is comfortable.
Once you reach this stage, it is time to let go as in, hiring an assistant and letting them fail too, so that they can use the real estate experience to learn and help you grow your real estate business.
When To Start A Real Estate Team
Many real estate agents make two common mistakes when establishing their teams. One is waiting for too long and working tirelessly without making significant improvements in their business and lifestyle. Others decide to move too quickly to bring on help, which leads to the hired becoming slaves of the business while the lead agent is faced with a situation of less work but extra wages to pay. These mistakes should be avoided through proper assessment using the three L’s.
The Three L’s
Leads, know your lead generation ratios and lead generation costs and focus on appointments booked and not the number of leads received. Market yourself and your agency, not your brokers. Listings, your business should initially focus on real estate listings since an agent can handle three times more active listings than buyers. Leverage, the first hire should be seen as an investment and time freed up by the new assistant should be filled with additional income producing activities.
The additional income should be able to pay the cost of the assistant and leave something on top for the agent. If your mathematics proves not, then you are not ready to hire and start a real estate team.
How To Structure Real Estate Team
According to Jeff Adams, an effective real estate team in today’s real estate market should consist of the leading agent, an administrative assistant, a buyer agent with two assistants and a listing agent with one assistant. This reduces the number of agents and therefore the amount spent on wages. It means maximizing the number of transactions by doing more with less.
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