Although more than half of agents responding to a recent survey said they’d never consider joining a real estate team, the trend of real estate teams continues to grow in popularity, according to a new survey released by the National Association of REALTORS®.
NAR’s first-ever Teams Survey revealed that 26 percent of its nearly 3,500 respondents were members of a team. The median number of people on a real estate team is four people and the median year a team was established is 2014.
Of those not currently on a team:
- 58 percent have not considered joining or starting a real estate team
- 30 percent briefly considered doing so
- 9 percent have strongly considered it
NAR reported the main reasons so many agents haven’t considered joining a team include preferring their independence, organizational problems they’ve witnessed within teams, commission splits and the desire to control the entire transaction themselves.
Although the majority weren’t interested in joining a team, nearly 40 percent of respondents expressed a curiosity regarding teams.
Sam DeBord, the vice president of strategic growth at Coldwell Banker Danforth near Seattle, told NAR that number shows “a continuing potential for the growth of the team model.”
“The increase of teams in the real estate industry is an undeniable trend,” DeBord said.
Of current real estate team members, 80 percent reported that all members of their team have a real estate license, while 88 percent of those took on the role of an agent. Fifty percent of respondents acted as a broker, while 47 percent handled marketing and administrative tasks.
The majority of real estate teams (29 percent) are made up of only two people, which may come as a surprise to those who consider the team aspect a potential competitor to larger brokerages.
The full breakdown:
Number of People
Another key question surrounding teams is commission split, as several solo agents mentioned in the NAR survey. The majority of respondents (38 percent) reported having a fixed commission split under 100 percent, while 22 percent reported having a graduated commission split.
The survey results are the first definitive research into the growth of real estate teams, a trend Portland, Oregon broker/owner Kathy MacNaughton and DeBord believe will continue to rise.
“I am convinced that the team approach will continue to grow,” MacNaughton told NAR.
Said DeBord: “With its emphasis on efficacy and specialization of skills, in an increasingly competitive brokerage environment, the team model will continue to grow in its share of agents as well as the market.”
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