realestate

Real Estate Teams Drive Sales through Personal Networks

New Survey by RealScout Uncovers Diverse Team Structures with Varied Outcomes.

M
ajor real estate brokerages are shifting their focus towards acquiring new teams to boost sales volumes and agent counts in a post-settlement market. This strategy allows them to efficiently grow their headcount, but a recent survey reveals that team structures and outcomes vary significantly.

    The survey, conducted by RealScout with Tom Ferry and T3 Sixty, gathered insights from 350 team members on lead generation, organizational diversity, and broker sentiment. It found that smaller teams (2-5 agents) spend less on lead generation due to limited budgets and operational capacity. In contrast, larger teams have more resources to invest in leads and convert them into sales.

    However, the survey also highlights a common oversight: sphere-of-influence (SOI) leads, generated through relationships with friends, family, and former clients, are often neglected. Despite SOI being the primary source of deals for 80% of small and large teams, many respondents reported basic or nonexistent systems in place to capitalize on these leads.

    Despite a challenging market and uncertainty surrounding the National Association of Realtors' antitrust settlements, team members remain optimistic about their future prospects. Many expect the new settlement rules to have minimal impact on their business, and some even anticipate easier recruitment due to the changes.

    The survey also sheds light on team structure, with median team sizes increasing from five in 2022 to six in 2024. Large teams are more likely to staff for recruiting, agent support, coaching, and operations, while smaller teams focus on marketing and transaction management roles. In terms of legal structures, most teams operate as LLCs or S-Corps.

    As the market adjusts to falling commissions due to the settlements, smaller brokerages may be less affected by declining revenue. With lower overhead costs, they can maintain profitability even in a challenging environment.

Real estate professionals leveraging personal networks to drive sales in local markets.