So you have decided to take control of your real estate business by forming your own team. Congratulations! You are on the right path to achieving more success than would ever be possible alone. As a team leader, it is important to build value in your team. Taking time to build a solid foundation for your real estate team is something that you will thank yourself for again and again down the road. We have collected and reviewed the eight most common mistakes that team leaders make when building their teams, so that you don’t have to.
1. Not Keeping Lenders Accountable
Not having a platform to know the status of your lenders and communicate directly with them puts you at risk for dropping the ball with potential clients. You should be able to easily track exactly how long it takes for your lenders to claim their leads, how much time passes before they reach out to their leads by phone and email, average response time, etc. The more information you are able to collect about how productive your lenders are, the better you will be able to serve your entire team. Without proper methods of tracking your lenders’ activity, you will likely waste time on lenders that are not producing for you. Spend more time working with people who are willing to work hard toward common goals. Make sure that your real estate CRM has these tracking features available to you.
2. Not Tracking ROI
Most agents have little to no time to spend tracking their ROI, and this mistake can be a costly one. If you don’t know exactly how many leads you are receiving from each of your marketing sources, you could very easily be throwing money away into something that is giving you precious little in return. Some agents calculate ROI on a monthly basis, but that won’t give you the whole picture. Tracking ROI doesn’t have to be a super time consuming thing. A good CRM will automatically calculate your return for you, informing your decisions as you go. Got money to burn? Ignore your ROI. Otherwise, figure out a way to make sure that your investments are working for you in a positive way.
3. Not Responding Quickly To Leads
According to various research studies, the ideal response time to your leads should be five minutes or less. This has been demonstrated time and time again. After that five minute mark, your opportunity to convert that lead drops significantly. Often times, leads are contacting you because they are interested in information about a particular property. They are used to immediate information at their fingertips, and if they don’t receive this, they will move on. And when you take into account any lag due to slow technology that might contribute to you not even receiving a lead’s contact info for several minutes after they submit a request, you might already be past that five minute mark! Timing is everything. Don’t let dated technology hold you back, and be ready to contact every lead as quickly as possible.
4. Not Providing Proper Training To Your Agents
One of the biggest misconceptions about starting out in real estate is that once you acquire leads or purchase online leads, everything will fall into place from there. That gathering leads is the “hard part”, and what you do with them is the “easy” part. Any seasoned agent would tell you that there is so much more to it than that. Agents need training on how to properly convert leads into clients. This includes making sure they understand how to use scripts, auto-responders, and any other tools that will allow them to be successful. If you do not take the time to thoroughly train your agents, you should not expect a whole lot of success out of them. Set high expectations for your team, and do what you can to help them succeed. Which brings us to our next common mistake…
5. Not Setting Proper Expectations For Your Team
As a real estate professional, you are probably a goal setter by nature. This is great! And the better you get at setting goals for yourself, the more likely you are to continue to succeed. Use this same skill to set realistic goals and expectations for your team, not just for yourself. Make sure to consider all aspects of the job that you want them to do, and be clear about how things are going to operate. I would sit down and create a list of goals and expectations for your team members, and revisit this list as a group during team meetings. How will leads be generated? Are the agents expected to get them, or will they be provided? What happens to the lead after the transaction closes? If they meet your expectations, what can they expect? What if they do not? These are just a few questions to ask yourself when setting expectations for your team.
6. Not Keeping Agents Accountable
You should have have clear and transparent ways of tracking your agents’ activity. This allows for full accountability of everyone involved. Using a CRM that allows you to track what your agents are doing is the easiest way to account for each of your agents. Pay close attention to how often your agents log in and interact with their portal, how quickly they respond to leads, their conversion rates, how well they convert leads into clients, etc. Also, listening to how well your agents are working on their scripts can help them know how to improve. Stay on top of your agents in a clear and fair way, and watch how they are willing to rise to the expectations you have set. Weekly and even daily meetings are a great way to keep everyone on the same page.
7. Not Having Proper Systems In Place
Are you trying to carry too much weight of your business on your shoulders? An easy way to know is if you are actually enjoying life outside of your real estate world. If not, you need to look into other systems that you can put to work for you, freeing up some of your time and allowing you to engage with life again! Some systems include real estate CRMs, dialers, assistants, transaction managers, auto-responders, and drip-campaigns and most importantly providers of financing. Hopefully you already have some of these systems in place, but if not, choose one to begin with and get going!
8. Not Leveraging Your Team
Beginning team leaders are often times not leveraging their team like they should. Part of setting expectations of your team is determining which agent each lead will belong to after the transaction closes. Letting your agents know beforehand that any leads that they close will still belong to you after the transaction closes is important for you to build your client database. Statistically, first-time or move-up homebuyers will move every three to seven years. Keeping in touch with these clients throughout the years, via email or phone call, as well as creating a great buying experience for each client, will make sure that you will be hearing from them again once they are ready to move. Maintain a bigger piece of your pie. Leverage your team for your benefit.
Stay tuned over the next few days as we dive deeper into each one of these mistakes. Best of luck as you build your rock star real estate team!