5 Mistakes to Avoid When Growing Your Real Estate Team

November 18, 2021 Team Building

Have you ever bought something that needs to be assembled, but you skipped reading the instructions and just started putting it together…

…Only to realize you have to start all over because you weren’t doing it the right way?

Yeah, I think we’ve all been there.

I bring it up because that’s essentially what I see lots of agents doing when they attempt to scale their business and build their team.

The mistakes they’re making significantly slow their progress – until they eventually recognize they need to start over and get it right.

So I’m devoting today’s blog to five costly mistakes to avoid when scaling your real estate team. Let’s dive in.

Real Estate Team Building Mistake No. 1: No Clear Vision of What You’re Building

The first step of building your real estate team is establishing a clear picture of what, exactly, you want to create.

Do you want a large mega team?
Do you want a small, tight-knit artisan team?
Do you want to stay in production?
Will team members be responsible for their own production or will the team provide leads?
Will you hire an admin staff or licensed agents only?

These questions and many more must be answered before you begin building your team.

The more clarity you can create about what you want your team to look like, the faster and more effectively you can reach that goal. I talked about this in-depth on Day 2 of this year’s Success Summit, including deciding which team type is right for you. If you missed it, right now Summit OnDemand is available for just $199 in our Black Friday Sale.

On the flip side, the less you define what you’re building, the more hurdles you’re creating for your future self.

Get crystal clear about what you want. And only then start building.

Real Estate Team Building Mistake No. 2: No Clear Vision of Sales Engineering

Business is a simple math equation.

How much of X will create Y to earn Z?

Far too many agents start building a team without really figuring this out. Building a team involves overhead and other bottom line-impacting expenses that you might not have incurred as a single agent.

It basically means creating a fresh business plan for the team and reverse engineering how you’ll arrive at your desired financial outcome. Don’t skip that step!

>KEEP READING BELOW<<

Real Estate Team Building Mistake No. 3: Lacking Clear Expectations & Budget for Profitability

As an independent agent, you can negotiate your commission to your heart’s content – even if I wouldn’t recommend it.

I’m talking about the “Well, it’s only for this one deal” rationalization mentality.

As a single agent, the only person you’re impacting is yourself.

But when you have a team, suddenly everything changes. Teams need clear expectations around commissions, splits, budgeting, and more to achieve profitability.

In other words, no more winging it. Building a successful team requires even more structure and guidelines compared to being an individual agent. Make sure to put them in place.

Real Estate Team Building Mistake No. 4: Kneecapping the Rainmaker

“Kneecapping the rainmaker” might be a mixed metaphor, but I think you get my point.

If your team’s success requires its leader or Rockstar agents to “do their thing,” then they need to be able to do it without interruption or distractions.

Freeing those people up to perform at the top of their game often means hiring admin staff and/or delegating tasks to make sure your top performers can focus on what they do best.

Get the right people and any necessary resources in place to let your superstars flourish in their specific roles!

Real Estate Team Building Mistake No. 5: Failing to Diversify

The members in our Team coaching program are truly exceptional real estate professionals, many of whom are top performers in their markets.

And lately, I’ve been challenging some of even the most successful ones with an important question:

“Why don’t you have a dedicated investment division?”

When non-owner occupieds account for 16% of U.S. properties, there’s a huge opportunity in diversifying your business.

I’m talking specifically about devoting a portion of your business to catering to investors. Considering that many investors actively buy and sell properties much more frequently than the average residential home buyer or seller, it’s a no-brainer in my book.

Once you get your team up and running, don’t be afraid to explore new ways to continue growing other than simply hiring more and more residential agents.

I hope this blog helps you avoid these mistakes when building your team. Let me know your feedback in the comments below, including any real estate team building mistakes I might’ve missed. Thanks for reading!