There are three different real estate models, so which is best for you?
If you’re thinking about getting into real estate or making a change, there are three models you should consider: the traditional brokerage, a teamerage, and a highly specialized team. None of them are better than the others, they’re just different. The job of helping people buy or sell property has been around since the middle ages, but the first real estate team was only documented in 1991, and team models have since developed over the past 20 years.
The traditional brokerage model dates back to the 1940s and has evolved into companies such as Keller Willaims, RE/MAX, Berkshire Hathaway, etc. In this model, there’s a certain amount of compensation, support, and coaching provided to the real estate agents.
A teamerage (likely a term you haven’t heard before) is typically made up of a bunch of agents, and its compensation and support structure is very similar to that of a brokerage. They may operate under a team brand, but they don’t share much else. They may share support for one another, and it might be more specialized than the brokerage. This model has expanded over the last decade and is becoming more common.
“You have to assess which model is the best fit for you.”
The highly specialized team will usually have more support than the other two in the form of training, technology, lead generation, etc. They’ll have specialized roles such as administrative structures, inside sales associates, showing agents, listing specialists, and more.
My highly specialized team is part of a brokerage. This proves there are combinations of the three models too, so there’s a place for whatever you’re looking for. You have to assess which model is the best fit for you. Evaluate your options and interview people from all three models before you decide because each one is very different in how they pay and the type of support they offer.
Don’t forget about reputation; there’s nothing more important than reputation in this industry—it goes a long way. As you’re interviewing, look for references and ask questions. Questions I encourage you to ask are: What is the documented take-home pay, and can you show that to me? What support are you providing, and can you show that to me?
Once you have all these things lined up you can do an apples-to-apples comparison to determine which model is the best choice for you.
If you have any questions about our real estate team or brokerage, no question is a silly one. We’d be glad to have a conversation with you, just reach out to us via phone or email.