Teams are becoming more common in the real estate industry, and an increasing number of National Association of Realtors® (NAR) members consider themselves a member of a real estate team, according to a new survey by NAR.
NAR’s 2018 Teams Survey found that 1 in 4 respondents (26 percent) were part of a real estate team while 73 percent were not.
The definition of a real estate team varies, and some states describe it as two or more real estate salespeople or licensees who work together to provide real estate services, or who hold themselves out to the public as a member of a team. Many Realtors who choose to join a team say it helps boost sales productivity by letting individual team members thrive with their own strengths and skill sets.
“The transformation of the real estate landscape continues to change the way Realtors do business,” says NAR CEO Bob Goldberg. “Over the last few years, Realtors have continued to embrace changing technology and business tactics that are modernizing the industry. Real estate teams are an increasingly popular business model in response to consumer demand for a wide range of specialties from their Realtor, as they expect constant support throughout the real estate transaction
The median year that current real estate teams were established was 2014, and Realtors typically joined their current real estate team in 2016, according to the report. Nearly 30 percent of Realtors had two people on their real estate team, with a median number of four team members.
Among respondents not currently on a real estate team, 16 percent had previously been on a team and 84 percent have never been a member of a real estate team; nine percent have strongly considered the prospect of teamwork, and 30 percent have briefly considered joining or starting a real estate team.
The survey gave team-member Realtors a list of activities to help explain their primary functions on a team. The most common answer was agent (88 percent), followed by broker (50 percent), marketing (47 percent), administrative (47 percent) and transaction coordinator (34 percent).
“This growing trend not only helps our members share workloads and responsibilities, but also allow Realtors to benefit from the experience of fellow professionals,” says NAR President Elizabeth Mendenhall. “The synergies of a well-functioning team are often an incentive to relinquish some of the independence of a solo practitioner, and (it offers) many attractive features for both licensees and their customers.”
The most common compensation arrangements within a real estate team were fixed commission split (38 percent), graduated commission split (22 percent), and 100 percent commission split (13 percent).
As real estate teams become a fixture of the contemporary real estate environment, it’s important to understand that real estate teams will attract the attention of real estate regulators, adds Mendenhall: 24 states have statutes or formal regulations in place that address real estate teams. “These regulations may continue to be relatively minimal, limited largely to advertising rules. Yet, as teams continue to develop and as the practice continues to evolve, it’s possible that more extensive regulations will also develop and evolve.”
In July 2018, NAR invited a random sample of 50,436 active Realtors to complete the Real Estate Teams survey. A total of 3,483 useable responses were received for an overall response rate of 6.9 percent. At the 95 percent confidence level, the margin of error is plus-or-minus 1.66 percent.
© 2018 Florida Realtors®