How to Build a Rockstar Real Estate Team in 7 Steps

Making a real estate team is not an easy feat. Many real estate agents only dream of it their entire career and cannot manage to achieve it. If you are looking to make a team, it means that you have managed to achieve the level of success that demands that you need more hands now.

Real estate agents that deal in freehold property for sale sometimes require more hands to carry out the deals as they are giving the whole ownership to the buyers.

A real estate team will not only bring more revenue but will also assist you in shouldering the burden. But you need to carefully analyze your current situation to evaluate what you need the most in your team. Figuring out the right skill sets and abilities needed to be in your team is only the first but most important step.

Here we have assembled a list for you to build a rockstar real estate team in 7 steps:

1. Ensure you are Ready for the Move

This is not something that you should do in the spur of the moment. Look at your clientele and your own needs to determine if you are ready for such a big move. Carefully analyze all the relevant aspects before making a conscious decision.

If you are making the team, you are the leader and you have to lead the team in the future. For that, you need to be aware of the added responsibilities and burdens that come with being a leader.

You cannot go blindly into this without considering all the respected issues. You need to make sure that you are equipped with adequate knowledge, skills, and resources to fully lead a team. Otherwise, it can go very badly.

For agents, there is an appropriate amount of clients per year that determine their success for the year. If you have handled and overseen over 40 transactions in a year independently, you are ready to make a team.

But solely sales cannot be the deciding factor for you to start looking for a team. As mentioned before, make certain that you are mentally and professionally capable to lead a team.

1. Plan & Set Objectives To Achieve

When we say that planning is three-fourths of the whole process of building a real estate team, we are not exaggerating. When you plan accurately and realistically, you achieve. The process of making plans and setting objectives help you in staying on the path as well as achieving results in the required time.

Start with the number of people you need on your team. Their specific skillset and abilities and what role would they be playing after joining the team etc. Try to look for people who are proficient in their industry and have the particular expertise that you are looking for.

Here, you need to be certain that you are not sabotaging the credibility of your team by hiring incompetent people. Many times it happens that saving money is the top priority, real estate agents look for people who have more than one skill so they can fulfill two or three positions with just one person.

This should not be practiced as it can compromise the professionalism of your team before you have even started. Hire a person who is skilled in their niche so they can aid you expertly.

1. Determine your Budget

Up until now, you are used to spending all the generated income by yourself while paying expenses and bills. But if you are deciding to create a team, you need to consider the monetary changes it will cause.

The money you are receiving now will be shared by your team members. This can impact not only your income but your current expenses and bills. When you include a showing agent, a buyer’s agent, a listing agent, etc, you have to distribute the current income among them.

For this reason, it is important that you carefully plan the financial budget so that you are not left with no income and just expenses. At first, it can be a bit difficult to generate enough income to cover all your expenses, and salaries and have profit on top of that.

But after some time, it will surely smooth out as you and your team will learn to work together harmoniously.

1. Hire at the Right Time

While hiring for the real estate team can be a bit overwhelming, do not get swayed by the obsession with hiring the whole team at the same time. This is the most common and biggest mistake that real estate agents make.

You need to be careful of the appropriate needs of your team. Look at what your team needs the most first, then hire accordingly. Just hiring the people because you think you may need them in the future will only lead you to have an overcrowded team that has in effect no use for you.

1. Oversee the Tasks but do not Micromanage

When you are making a team, you may want to oversee even the smallest tasks and details. As the team leader, it is expected of you. You should be aware of the activities and tasks performed by your team.

Try to be involved in the major decisions and other activities. Make sure there is a level of transparency among you, your team, and your clients. This way, you can prevent any mistakes from happening down the line.

But it should be done strategically and appropriately. You do not need to know every single small detail. You hired people and made the team because you deem them fit for their specific roles.

Now, if you micromanage everything they are doing, your team will not yield productivity. Trust your decision and trust the team that you have hired, they will provide you with profitable results in due time.

At the same time, try to create a balance between overseeing tasks and delegating activities. It is not practical or professional to delegate all your duties to your team. This will create an extreme imbalance in your tasks and will not give good results.

Delegate some tasks that you think can be handled by your team. Other than that, do not walk away from your responsibilities. Do what is expected of you and that demand the attention of a leader.

1. Establish a Culture & Enforce it

When you are starting the process of making a real estate team, make sure that you have a particular culture set in place. This culture is the culture of your company that includes, ethics, morals, and values of your company.

Try to be transparent about your company culture with your team from the beginning. The process of hiring should involve a clear explanation of how your company works and what is expected of the potential employees.

Through this, you can expertly filter out people who are not aligned with your company culture. This also makes it easier to achieve goals since everyone is acutely aware of their duties and responsibilities.

1. Measure Results

This is the most important step and is often overlooked. After you have successfully established a team, you need to measure the results to evaluate the effectiveness of you and your team.

Analyze results and measure them before and after to see if anything has changed for the better. Look at the metrics to make a calculated evaluation. If you do not see fruitful results you need to think of an alternative.

You can look at certain metrics to make the decision

• Operating Expense Ratio (OER)
• Return on Investment (ROI)
• Equity to Value Ratio (D/E)
• Payback Period
• Average Mortgage Ratio