By: Jennifer Weinberg

One enticing aspect of the real estate business is the wide variety of business models one can enter into. Under the brokerage umbrella, real estate agents work as solo professionals, join a team or choose to form partnerships. While most start out as solo agents, one of the other options might better fit an individual’s needs.

According to the NAR 2022 Member Profile, 22% of real estate agents are on a team, and those teams typically have four members. Teams are a popular option for newer agents, as 49% of the agents on teams have less than one year of experience.

Here are some things to think about when assessing which model is right for you:

Solo

Solo, or individual agents, work under a broker, typically by themselves. Some brokerages offer various services and technology to help with the day-to-day, but as a general rule, you are in charge of how you run your business. As a solo agent, you have to be an expert in all areas of the business. You are the go-to for your clients. You’re doing the lead generating, listing appointments, the walk-throughs and showings, the marketing, answering questions and fielding paperwork. You’re also your own accountant, tax person, social media manager and more.  Let’s face it: being a solo agent can be tough, and yet it’s also true that many agents thrive on their own!

If you are a solo agent and find that there are some aspects of your business you’d like to hand off, hiring an assistant might be the right move. Maybe there’s another solo agent at your brokerage who needs an assistant, too – many solo agents share one assistant to cut down costs (and provide enough working hours to the assistant). A contract-to-close coordinator is another option to take some things off your plate.

Ideally, you have enough support, either through your brokerage’s offerings or by hiring an assistant, to focus on the most important aspects of your business: providing superior customer service and selling homes.

Teams

A team typically comprises four or more agents, all working together. The team structure is usually led by a Team Lead. This person is the “face” of the team, and their name is usually front and center. Team Leads are usually responsible for lead generation as well, which is considered one of the toughest aspects of the business when getting started. Team members usually play a specific role based on their interests and strengths in the business: buyer’s agents, listing agents and contract coordinators are some examples. Specific team roles are well suited for those who want to be an expert in one aspect of a real estate transaction. If you love showing houses and showing potential value to a buyer, then being a buyer’s agent may be right for you.

Teams are attractive to agents with varying degrees of experience. New agents find that joining a team is a great way to become an expert in one aspect of the business. Those with more experience might find that after some trial and error, a team allows them to focus on what they like.

Partnership

You could consider a partnership as a two-person team, but partnerships are more about equal collaboration. Roles can be defined by individual strengths, and in general, agents in partnerships work together on things like transactions, marketing and contracts rather than one person focusing on one aspect of the business. This is a good structure for individuals who want to pool resources and have a good balance of strengths and compatibility.

Communication is paramount in a partnership structure. Having clearly defined expectations, from job tasks to financial responsibilities, ensures an honest and trustworthy partnership.

Pursuing the solo agent route means knowing yourself—strengths and weaknesses—and adapting as needed or hiring help so that you can make the most of your business. If you’re thinking about joining a team or creating a partnership with another real estate agent, here are some considerations to think about when weighing your options:

1. Understand your personality and the personality of the individuals with whom you want to collaborate. Evaluate individual characteristics and compare. There are various methods to assess traits: DISC, Myers-Briggs, Enneagram and just a few examples. Using one or more of these tests can help you understand your type and your potential partner’s or teammates’ type as well. Are the characteristics and personality types in sync, too similar or too combative?
2. Take an honest look at the goals you have for yourself for the next one to three years. Ask yourself these questions. Do the goals of the team/partner align with my own? Do I have what I need to reach my goals on my own? What benefits are there to joining a team or entering into a partnership?
3. Define what accountability and fair treatment means to you. These might be the two biggest influences on your decision. What expectations do you have of the team lead and vice versa? How do you feel about being accountable to another professional in your financial achievements? What feels fair to you? These are big questions that may take a little time to assess. Be honest with yourself and your potential team lead or partner.

Your real estate business will ebb and flow. You will likely enter into more than one business structure during your real estate career. Take the time to assess your current needs and long-term goals to determine the right move for you. Know, too, that barring contractual agreements and personal commitments, you have the flexibility to choose a different option if your needs or wants change.

Jennifer Weinberg is a licensed real estate professional, REALTOR® and partner in Living True Home Group at MW Real Estate Co in Nashville, TN. Living True Home Group empowers homeowners by offering real estate information and services in an approachable, compassionate and fun way. Their motto: No egos here. This women-led partnership makes sure all their clients feel listened to and cared for and well-informed.