Saturday, January 21, 2012

Real Estate Teams - Do Buyers want to Play?

Real Estate Teams are growing in popularity and size. It used to be a Team was two maybe three people; today some Teams can have 30 or more members! Many of these Teams may be "Top Producers", meaning they close a lot of deals - great for real estate companies!


The book The Millionaire Real Estate Agent, by Keller Williams founder Gary Keller and co-authors Dave Jenks and Jay Papasan has been instrumental in promoting the Real Estate Team concept. A "Team" typically divides it's members; some work with Sellers, some with Buyers. The Team usually works out of a larger real estate office/company (Brokerage). The key is cordinating all the different members of the Team to maximize the number of closed deals so that the Team makes enough money to support all it's members. Closing the deal, making the sale is the driving force in this form of Sales Organization.

The foundation of the Team is based on the typical Real Estate model of "Dual Agency". Dual agency is where the same real estate Brokerage represents both Buyers and Sellers. Part of the Team focuses on getting listings contracts - contracts to sell property for a property owner. These contracts create an obligation for the Brokerage as well as the Team to market, promote, display the Seller's property in the most favorable light and sell for the highest price possible. Another part of the Team works with Buyers.


From a Buyer's perspective how does this Team concept benefit the Buyer? The Buyer's main objective is to find the best property for the lowest price. A Team member will want to show and sell one of the Team's property listings - first. Buyers often complain that Team/Brokerage properties get "talked up" while other properties get "talked down" or are just not shown at all. Why? Because by selling a property the Team has listed the Team could double it's commission.

Can you imagine your Buyer Agent Team member "fighting" fellow Team mates to get the Buyer the best deal?

While many professions do have team concepts: surgeons, contractors, sports, etc.; these team members typically do not serve clients that have opposing objectives.