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Home » Is selling your home with a team better

Is selling your home with a team better

February 16, 2021 By Ariette

Tanja van de Kamp & Ariette van Pelt Calgary RealtorsIn recent years, Calgary’s real estate has seen a shift in the way realtors work. More often realtors form a team and work together. In Calgary, there are many teams and sizes differ from 2 up to 50 realtors. Why have teams become so popular, and are they better at selling homes than sole agents?

First, a short answer to this last question. In our opinion, real estate teams, big or small, are not any better in selling or buying a home than the sole agent. A good agent is simply based on his or her personality, motivation and experience in real estate.

Why realtors team up

A good agent is simply based on his or her personality, motivation and experience in real estate

Realtors team up for different reasons. Once a realtor gains traction and gets busier, it is sometimes difficult to service every client well. Everything takes time in real estate: showing homes, listing presentations, networking for client acquisition, preparing market evaluations, attending open houses, continuing education and so forth. The work goes on in evenings and weekends, as well. Besides work, many realtors have a family needing attention. So, working with a spouse, partner or friend can lighten the load by sharing the work.

We personally see the advantage of being a team of two, rather than a solo realtor. All our clients know both of us, and we can service most clients together. Therefore, we service clients better, and with more dedication.

Joining a large real estate team for a reason

Realtors in larger teams usually pay up to 50% of their commission to the team owner

Realtors who join a larger team may have different reasons, as well. Usually, finding clients takes a lot of time networking, and not all agents have a large group of friends and family to keep them afloat. All marketing, including finding buyers and sellers is taken care of by the team owner. Realtors in larger teams usually pay up to 50% of their earned commission to the team owner, in return for the marketing and leads. For many newer agents, joining a team may be a perfect way to learn the ropes of real estate.
 
 

Why only teams can claim to be the #1 realtor

Many solo realtors do more transactions per year than the agents in a team

Many solo realtors do more transactions per year than the agents in a team. However, real estate teams can claim every home sale under the name of the team owner. So, the more agents per team, the more transactions, and all in the name of just the one realtor. As a result, this team owner can promote doing hundreds of transactions, and therefore be a #1. And since a team owner receives up to 50% for every transaction from a team member, large marketing budgets are created to promote being #1. However, as mentioned in this article, large marketing budgets are merely for self-promotion and not so much to sell your home.

Don’t confuse a brokerage with a team

A team is a business model within a brokerage

A brokerage is not considered a team. The brokerage is the entity that holds the licenses of a realtor. A realtor can choose any brokerage and must work under that flag. As of January 2021, the Calgary Real Estate Board counted around 500 brokerages and well over 5000 realtors. Every brokerage charges a monthly fee, and usually also charges a deal fee and a percentage per transaction. A team owner is one realtor within a brokerage. However, all team members must be part of the same brokerage. A team is just a business model within a brokerage.

Is selling or buying a home with a team the best option?

Realtors are allowed to combine all transactions under one name to become #1

There is no good, right or better option. It is just a personal preference for a realtor. Some agents love to work solo, some work happily in a team of two, and some realtors can only thrive while working in a larger team, and all for different reasons. Some solo realtors choose to aim for 10 transactions per year, while some sell or buy 40 homes per year.

However, the fact remains that many solo agents in Calgary do more transactions than the team member in these large teams who claim to sell hundreds of homes per year. That is just a way of marketing. In our opinion, it is a public misconception that buying or selling a home with a real estate team is the best option

Selling or buying a home successfully stands or falls with the experience and dedication of the person, whether working in a team, duo or solo.

Read more about Misleading marketing in real estate – Choosing a realtor and brokerage and 18 questions to ask a realtor.

Filed Under: Selling

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