Why Building a Real Estate Team is So Hard

Building a successful real estate team might seem like the logical next step for a growing agent, but it’s often far more challenging than expected. Many agents dive into team building without fully understanding the complexities and demands it brings. From managing different personalities to juggling administrative tasks and navigating brokerage policies, leading a team requires a completely different skill set than selling homes. 

If you're thinking about taking the leap, it's crucial to know what you're getting into and how to set yourself up for success.

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You Need More Experience Than You Think

Most successful real estate team leaders have at least five years of experience before forming a team. While it might seem like a great idea to build a team early, many agents caution against it.

Leading a team requires more than just sales skills – it demands a deep understanding of the industry, strong leadership abilities, and the ability to solve complex problems. Without a solid foundation in your own business, guiding others can become overwhelming and ineffective.

Experienced agents emphasize the importance of learning from personal successes and failures before taking on the responsibility of leading a team.

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It's Not Just About Hiring People - It's About Providing Value

Bringing agents onto your team isn't as simple as handing them leads and expecting them to perform. Successful teams offer mentorship, support, and a clear path to success. If you can't provide value beyond what they could get on their own, they'll likely move on quickly.

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The Administrative Side is Overwhelming

Managing a team means managing paperwork, compliance, marketing, training, and more. It's a lot to juggle, and if you don't have the right systems in place, it can quickly become overwhelming. It will take time to assemble the right administrative team as time will teach you how to manage, spot talent and fire fast. 

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Brokerages Have Rules - And They Can Be a Buzzkill

Not all brokerages are team-friendly, and their policies can sometimes create obstacles you didn’t anticipate. From commission splits to branding restrictions, choosing the right brokerage that aligns with your team vision is crucial.

What most agents don't realize is that most brokerages lose money from teams. They are high producers who tend to use a lot of brokerage resources but have a ceiling on what they pay out to the brokerage annually. Don't expect special treatment if your broker sees you as less of an asset and more as an expense.

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Balancing Leadership and Sales is Tough

Many agents struggle with shifting from being a solo producer to a leader. Once you start building a team, your time isn't just your own anymore. Balancing leadership responsibilities while still selling and maintaining personal income can be a tough adjustment.

From running weekly meetings, troubleshooting more clients, delegating work to your team, kicking off initiatives while constantly setting the example for hard work and dedication is exhausting - until you build up your mental muscles for these areas. 

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Not Everyone Works Like You Do

One of the biggest surprises agents shared was realizing that not everyone has the same work ethic, motivation, or approach to the business. How you choose to run your team will define your culture and ultimately drive your level of success.

If everyone was like you, they would leave and start their own team! So you can hire team members, push them hard until they become super-productive or burn out. Or, you can take a more customized approach and accept that each team member is on their own journey with more individualized goal setting and counseling - which takes practice, wisdom and time to perfect.

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In Conclusions

Building a real estate team isn't for the faint of heart, and it's definitely not as easy as it looks from the outside. If this article has talked you "out" of starting a team, then you weren't ready to begin with! But if you are still planning to take the leap, it's best that you know the challenges that come with it from the start. Now go crush it!