The Art of Hiring Real Estate Agents: Building a Team That Grows

Navigating the real estate market can be akin to a high-stakes chess game – each move must be strategic, weighing risk and reward with precision. Nowhere is this analogy more appropriate than when you build a real estate team. The difference between a rook and a pawn can spell the difference between a checkmate deal or a stalemate disaster. So, how do you recruit top-tier real estate agents who will elevate your brokerage?

The first step is recognizing why real estate agents leave their current positions. In 2023, the median years of experience for real estate agents was 11, but the median tenure at the present firm was six. That means most experienced agents change their affiliation at least once.

Common reasons for jumping onto a new team include disillusionment with the lack of growth opportunities, insufficient financial agreements, and feeling unsupported within a brokerage. Proactive real estate managers looking to grow their teams need to build a culture around these areas. It’s not just about attracting talent but also retaining top talent.

Set up your real estate business by:

Know Who You Are

First off, none of what follows will work for growing your real estate team if you don’t clearly grasp what your real estate team does, how they do it, and where they want to go. Simply put, what’s your team culture? You need to be 100% on point with the kind of culture you want and 100% sure that’s the actual culture you have. Show self-awareness and have the right practices in place.

Keri Shull founded her team and grew it to no. 21 in the nation by having exactly that philosophy. “I think how we build our team depends on being really honest with ourselves about what our strengths and weaknesses are,” Shull said in the Reside Platform Podcast. “I was very confident in my ability to make it rain leads, but I did not want to follow up with the leads.” In other words, she had strong marketing strategies but set up a real estate team structure where another agent handled the follow-up. She knew what she was good at and where someone else could help.

Know the team culture you want and the kind of people you want to work with. If you don’t want to work with onboarding and training brand-new real estate agents, why recruit them to your sales team? Or if your team is built around a culture of accountability, with weekly team meetings and check-ins, why hire a real estate agent who isn’t interested in attending these?

The secret to recruiting success lies in identifying and attracting the most suitable candidates who align with your team dynamic. It’s not about meeting and recruiting with every individual agent who expresses interest.

Finding Your Real Estate Team Structure

Real estate teams have many types of structures: a mentor-mentee model, team leader, or lead team. There is no one way to build a successful team; it’s about playing to your skills and creating a team structure around that.

Generally speaking, in a team leader model, there’s a team leader with supporting cast members under them, like transaction coordinators, marketing managers, listing agents, and sales agents. When you’re the team leader, you pick the types of roles you want that will best support the entire team’s success. Growth shouldn’t be on a whim but guided by a detailed plan and organizational structure.

A lead team model emphasizes lead generation by using the brand to drive attention. As the leader, you’ll then assign these leads across your team of listing and showing agents, who then close them with a transaction coordinator’s help.

Write into your real estate business plan what team roles will be added, when, and how that role will accelerate growth. Carefully measure when the right time is to add to your operations team or to bring on a new listing manager or buyer agent. A virtual assistant could handle some administrative tasks, or a full-time hire may be required, depending on your sales volume.

Creating a Culture of Growth

Like everyone else, real estate agents seek personal and professional growth. To attract and keep the best, demonstrate that your brokerage is the place they can grow. What that growth looks like differs from person to person, but generally, it has to do with:

• Mentorship programs where newer agents learn from top producers about the selling process
• Continuous education and training beyond the basics
• Clear pathways for advancement, whether in position, title, or responsibility, like a move from inside sales agent to transaction coordinator to buyer agent to team leader.

Let aspiring agents see your team model has the space and support to climb a ladder of success. They’ll be more likely to establish roots with you and stick around.

Financial Incentives That Matter

If your financial agreement is not competitive, you’ll likely lose high-performing agents to more appealing offers from other brokerages.

Balance is key here. Agents want to be rewarded for their hard work, but they also want to feel that the commission split is fair and that the support received is worth the value. Craft a commission rate structure that rewards their performance.

But also look hard at what tools and supports your team provides them for the commission split. Ensure your brokerage offers robust administrative task support, state-of-the-art technology, marketing, and legal resources. A robust support system sets up your agents for success and demonstrates your commitment to their professional success.

Relationships First, Recruitment Second

There’s a reason the real estate industry emphasizes the role of personal connections – it’s a business built on client relationships. Sure, the tools and technology streamline the whole process, but they don’t replace the personal touch.

Don’t jump into the pitch for your brokerage; cultivate a relationship with the individual agent first. Bringing in the right personality types and complementary skill sets matters. If their work ethic and approach to real estate seem right, keep the conversation going. Learn their goals and challenges. Then, align their ambitions with how your brokerage can help them achieve them. Maybe you can demonstrate how your marketing efforts generate a steady stream of leads or how your admin team environment will help them handle before transactions a year and, therefore, have a higher commission income.

Leverage Your Brand and Reputation

A strong brand and a good reputation attract talent. Recruitment starts with what you do daily: creating an exceptional experience for clients buying and selling real estate. It continues through the positive and professional interactions with the agents on the other end of the deal.

When other experienced agents see your brokerage’s impact and growth in the marketplace, they’re more likely to want to be part of it.

Highlight your brokerage’s successes through its marketing materials as part of building a real estate dream team. Be clear about your unique selling propositions and promote the wins of your current agents. Word will get around that your brokerage is a positive place for real estate agents to thrive.

The Onboarding Process: Making a Good First Impression

Your relationship-building efforts don’t end once an agent agrees to join your team. The onboarding process is your opportunity to make a lasting impression, set expectations, and show that you’ll continue to invest in their success.

Design an onboarding process that is comprehensive but not overwhelming. Delineate clear steps and checkpoints to guide new agents through the first months on the job. Consider having different tracks for brand-new agents, agents with some experience eager to accelerate their careers, and top producers.

Continuous Feedback and Dialogue

Real estate is a dynamic industry that changes rapidly. Agents value regular feedback and open communication. Establish a culture of dialogue with your team, where success and challenges are openly discussed, and support and resources are adjusted as needed.

Recruiting the right way means building relationships. Creating trust and showing your recruiting prospects you care ensures you attract successful agents. It also increases your chances of retaining agents after you have invested a lot of time and money in onboarding and training them.

Prospecting Real Estate Agents

Ready to strategically grow your real estate team? Understand the needs of your agents, build a culture of support and growth, and demonstrate the unique advantages your brokerage offers. Remember, the recruitment process is as much about the new agent as your team culture. The combination of personal and professional growth, a competitive financial agreement, and unwavering support will make your brokerage irresistible to real estate talent.

Updated July 2024