T
he real estate industry is undergoing a significant transformation, with teams emerging as the driving force behind growth and production. According to RealScout CEO Andrew Flachner, brokerages that prioritize solo agents over teams risk being left behind. To stay competitive, brokerages must offer flexible technology, administrative support, and marketing resources to attract and retain top-producing teams.

    Flachner warns that companies focused solely on short-term economics may miss out on long-term growth opportunities. He cites the example of Kodak, which failed to adapt to digital photography due to its focus on film sales. "Innovation is painful," Flachner says, "but doing what feels right now might actually be the wrong choice."

    A recent report by RealScout, T3 Sixty, and Tom Ferry highlights the growing importance of teams in real estate. The study found that 47% of eXp licensees are either team leaders or members, with some teams eclipsing brokerages in their market. Tech companies supporting teams, such as Follow Up Boss, have seen significant valuations.

    To succeed, teams require more than just leads and logos; they need integrated technology, administrative support, marketing resources, recruiting help, and cost offsets for startup costs. Brokerages can make it easier for teams to form by subsidizing startup costs, offering team-focused templates and playbooks, and sharing staff to reduce overhead.

    Flachner also emphasizes the importance of flexibility in tech solutions, recommending that brokerages adopt a "bring your own tech" approach. This allows teams to use their preferred systems, rather than being forced into a single, proprietary platform.

    For smaller and mid-sized brokerages, Flachner suggests considering bold options such as building an in-house team or becoming a team-rich brokerage. By doing so, they can attract new agents, partnerships, and marketing opportunities, while stretching existing resources further.