Should I Work Solo or With a Real Estate Team?

In many markets, the traditional model of a lone real estate agent has shifted towards a more team-oriented approach. It’s crucial to weigh the pros and cons of each model before making a decision on what type of brokerage works for you. Here’s a look at working with a real estate team to help you make an informed choice.

Key Takeaways

• Working solo offers greater independence, flexibility, and the ability to keep all commissions, but it comes with financial risks and the challenge of managing everything alone. In contrast, working with a team provides shared responsibilities, reduced financial risk, and opportunities to learn from experienced agents but requires sharing commissions and may limit personal branding.
• Your decision should align with your long-term career goals and preferred work environment. Consider whether you thrive in a more independent setting or prefer the collaborative nature and support of a team.
• Solo agents can build strong personal brands and keep all their earnings. At the same time, team members might find it challenging to establish their own identity within the team but benefit from shared income and reduced expenses.
• Teams can offer structured learning, support during busy times, and potential for growth into new niches, while solo agents must rely on their own resources and reputation to expand their business.

Working Solo in Real Estate

If you’re new to the industry, note that real estate agents must work under a broker’s supervision, though they operate independently within the brokerage. While agents may belong to the same brokerage, they manage their own clients and commissions.

Related Article: 16 Questions to Ask When Interviewing a Real Estate Broker

Historically, most real estate agents worked solo, but the industry has seen a significant shift towards team structures. According to an independent national study by Workman Success Systems, 85% of real estate agents believe that being on a team provides a competitive edge, and 77% reported a “positive” or “very positive” experience working as part of a team. Despite this trend, working solo has its advantages and drawbacks.

Pros and Cons of Being a Solo Real Estate Agent

Pros:

• Flexibility: Set your own schedule based on personal preferences.
• Unlimited Earning Potential: Keep all commissions from transactions you close.
• Independence: Choose clients and marketing strategies independently.
• Sense of Ownership: Enjoy the rewards of your individual successes.
• Client Relationships: Develop close, personal connections with clients.

Cons:

• Competition: Compete with other agents within and outside your brokerage.
• Income Stability: Slow periods can be financially challenging without sufficient savings.
• Long Hours: Manage all open houses and client meetings, which can affect work-life balance.
• Financial Risk: Cover all business expenses, including advertising and marketing, regardless of sales.

Working in a Real Estate Team

Real estate teams can have various structures. Some teams work together and benefit from a steady flow of referrals from past clients and a robust lead-generation program. The team distributes leads for follow-up by team members, who may become the primary contact for those clients.

Other teams assign specific roles to each agent. For example, one agent may handle client presentations, another may write sales listings, and a third may oversee lead generation.

Some teams have members specializing in different niches, such as commercial properties, investment properties, or specific types of residential real estate.

Pros of Joining a Real Estate Team:

• Learning Opportunity: Gain knowledge from experienced agents and improve your skills.
• Shared Expenses: Split costs for support staff, promotional materials, and other resources.
• Shared Profits: Reduce financial risk by sharing income and responsibilities.
• Shared Responsibility: Benefit from a more flexible schedule and support during busy seasons.

Cons of Joining a Real Estate Team

• Personal Branding: Building a personal brand can be challenging if the team’s identity dominates.
• Brand Differentiation: Ensure the team’s focus aligns with your niche to avoid conflicts.
• Team Dynamics: Manage relationships with various personalities within the team.
• Smaller Commission Cut: Share commissions with your broker and team lead, which may reduce your earnings.

Joining a Real Estate Team vs. Working Solo: Which Do I Choose?

Consider these questions before deciding:

• What are my long-term career goals?
• What type of environment do I thrive in?
• What support and resources do I need?
• What is the team culture and track record?
• What opportunities for growth and advancement are available?
• How will joining the team impact my personal brand?

If you’re looking to expand a successful practice, consider:

• Do you have enough name recognition to support additional agents and staff?
• How will the team help you expand into new niches or market areas?
• Do you have well-defined branding that can transition into a team brand?
• Do you have a talent for managing and developing others?
• Do your referral sources expect your personal attention, or would they be open to working with team members?

Consider both your immediate needs and long-term objectives. Consult a mentor or colleague with experience in solo and team environments to gain valuable insights. For career growth and education, explore opportunities with Key Realty School, which offers Nevada-approved continuing real estate education to enhance your skills and boost your income.