The Playbook on Building and Scaling Real Estate Teams

Real estate teams are becoming more common across the industry. Many real estate professionals are choosing to work in teams rather than as solo agents.

There are several reasons why this model has grown over the past decade, including changes in client expectations, technology, and how brokerages support agents. This article explains how real estate teams work, why they matter, and how to build and manage one effectively.

Each section breaks down a key part of the team model, from daily operations to legal structures. The goal is to provide a clear overview of how real estate teams function and how they are structured.

What Is a Real Estate Team and Why Does It Matter?

A real estate team is a group of licensed real estate professionals who work together under a lead agent or broker. They share resources, leads, and tasks to help clients buy and sell properties more efficiently. The team may include agents, administrative support, marketing staff, and other specialists.

This team-based model offers a different structure from the traditional solo agent approach. Instead of one person handling every transaction, team members focus on specific roles. For example, one person might handle marketing while another manages showings or paperwork.

Real estate teams began to grow in popularity in the early 2000s. As client expectations increased, it became harder for individual agents to manage all tasks alone. Teams allow for division of labor, faster response times, and a more consistent client experience.

Key reasons real estate teams have become more common:

• Increased workload and complexity in transactions
• Greater demand for fast communication and service
• Ability to specialize roles (e.g., buyer’s agent, listing coordinator)
• Structured systems to handle more clients at once

How Real Estate Teams Work Day-to-Day

Real estate teams operate with defined roles and shared responsibilities. Most teams are led by a team leader who oversees operations, lead assignment, and performance. Team members focus on tasks based on their roles, such as showing homes, handling paperwork, or managing listings.

Leads are distributed in different ways depending on the team’s structure. Some teams use round-robin systems, where leads are assigned in rotation. Others distribute leads based on performance, availability, or specialization such as buyer leads or seller leads.

Client relationship management is often handled through a shared CRM system. This allows team members to track conversations, manage follow-ups, and stay updated on each client’s status.

Daily activities on a real estate team often include:

• Responding to new leads
• Following up with current clients
• Attending showings and open houses
• Preparing listing materials and marketing content
• Managing contracts and transaction paperwork
• Participating in team meetings or training sessions

When to Consider Starting a Real Estate Team

Business Volume Threshold

A real estate team often becomes necessary when a solo agent handles more transactions than they can manage efficiently, prompting consideration for building a team. Agents typically begin to consider building a team once they reach 40 or more transactions per year.

Warning signs that it’s time to build a team include:

• Missed opportunities: You’re unable to follow up with all leads
• Service quality issues: Clients are waiting too long for responses
• Work-life imbalance: You’re working evenings and weekends consistently
• Revenue plateau: Your income has stopped growing despite more work

Leadership Readiness

Starting a team requires leadership skills beyond selling homes. Before forming a team, ask yourself:

• Can I delegate tasks and trust others to follow through?
• Do I have systems in place to support other agents?
• Am I willing to shift from production to leadership responsibilities?

Financial Considerations

Launching a real estate team requires upfront investment. Common startup costs include:

• Salaries or stipends for administrative staff
• CRM and lead management tools
• Marketing materials (signage, branding, digital ads)
• Office space or virtual office tools
• Legal services for agreements and contracts

Real Estate Team Structure Basics

Roles and Responsibilities

Real estate teams are made up of different roles that work together to complete transactions. Each person focuses on specific responsibilities.

Common roles on a real estate team:

Types of Team Models

There are several common ways to structure a real estate team:

• Mentor-Mentee Model: One experienced agent mentors one or more newer agents
• Partnership Model: Two agents with equal experience and shared responsibilities
• CEO Model: A lead agent acts as the CEO, managing staff and agents
• Team Within a Brokerage: A group of agents works as a team but operates within a larger brokerage
• Hub-and-Spoke Model: The lead agent is the central point, with team members handling specific roles

How Do Real Estate Teams Split Commission?

Traditional Splits

Traditional commission splits are the most common structure used by real estate teams. In this model, the team leader provides leads and resources, and team members share a portion of their earned commission.

Typical ranges:

• New agents or those receiving most leads from the team leader: 40%–50% of the gross commission
• More experienced team members who generate their own business: 60%–70%
• Team leaders retain the remaining portion to cover overhead costs

Example: A $10,000 commission with a 50/50 split results in $5,000 to the agent and $5,000 to the team leader.

Tiered Splits Based on Production

Tiered commission splits adjust based on the agent’s performance. As a team member closes more deals or generates more revenue, their commission percentage increases.

Common tier structures:

• 0–$100,000 GCI (Gross Commission Income): 50% split
• $100,001–$200,000 GCI: 60% split
• $200,001+ GCI: 70%+ split

These thresholds are set by the team leader and may reset annually or quarterly.

Hybrid Commission Models

Some real estate teams implement hybrid commission agreements. These models combine elements of traditional and tiered approaches or introduce new performance-based incentives.

Examples include:

• Higher splits for self-generated leads, lower for team leads
• Bonuses based on client reviews or team contributions
• Base salary plus lower commission split

Pros and Cons of Real Estate Teams

For Team Leaders

Advantages:

• Scale operations by delegating tasks to multiple agents
• Increase transaction volume by leveraging team members
• Focus on leadership and strategy while others manage client work
• Build brand recognition that attracts talent and clients

Disadvantages:

• Administrative overhead increases as the team grows
• Responsibility for onboarding, training, and managing performance
• Fixed costs such as salaries and technology rise with team size
• Less time for client work as leadership duties expand

For Team Members

Advantages:

• Access to structured training and mentorship
• Leads are often provided by the team, reducing prospecting time
• Exposure to systems, tools, and workflows that support learning
• Defined career paths with opportunities for advancement

Disadvantages:

• Commission splits may be lower than those earned by solo agents
• Less control over branding and business strategy
• Performance expectations set by leadership
• Dependence on the team’s lead source for consistent income

Steps to Build and Scale a Team

Define Your Vision

A team vision explains why the team exists and what it aims to achieve. A mission statement explains how the team will accomplish its goals. Together, these statements guide team decisions and align everyone around shared values.

Examples:

• “To help first-time homebuyers in Austin feel confident and supported from search to close.”
• “To become the most trusted real estate team for move-up buyers in Northern Virginia.”

Recruit and Onboard Agents

Recruiting starts with identifying agents who align with the team’s values and goals. This may include new licensees, experienced agents, or specialists.

Interview questions to consider:

• How do you handle high-pressure situations with clients?
• What are your long-term goals in real estate?
• How do you manage your daily schedule?
• What role are you most interested in within a team?

Onboarding best practices:

• Provide written role expectations and performance benchmarks
• Set up CRM access, email, and tech tools on day one
• Assign a mentor or team member for early support
• Schedule check-ins during the first 30, 60, and 90 days

Establish Systems and Workflows

Workflows are step-by-step processes that guide how tasks are completed. KPIs (Key Performance Indicators) are measurable values that show whether team members are meeting expectations.

Recommended KPIs by role:

• Buyer’s Agent: Number of showings, client responses, transactions closed
• Listing Agent: Listings taken, listing-to-sale ratio, days on market
• Inside Sales Agent: Dials per day, appointments set, conversations logged
• Transaction Coordinator: On-time closings, error rate, response times

Key workflows to document:

• Lead intake and routing
• Listing launch and marketing
• Buyer consultation and tour process
• Offer submission and negotiation
• Contract-to-close steps

Legal Essentials for Real Estate Teams

Commission Agreements

A commission agreement outlines how commission is earned and divided among team members. It helps ensure each person understands how they are paid for their work on the team.

Each commission contract should include:

• Commission split percentages for different lead sources
• When and how commissions are paid
• Commission tiers based on performance or tenure
• Policies for commission if an agent leaves the team before closing
• Dispute resolution process

Team Agreements

A team agreement explains how the team operates and what is expected from each team member. It includes details about commission, lead handling, responsibilities, and exit procedures.

Recommended practices:

• Use clear language for all terms and responsibilities
• Include a description of roles, reporting structure, and performance benchmarks
• Define what happens when someone leaves the team
• Clarify ownership of marketing materials and client data
• Make sure all agreements are signed and updated as needed

Team Technology and Systems

CRM and Lead Management

Customer Relationship Management (CRM) systems help real estate teams organize contacts, manage leads, and track communications in one place.

Key features to look for:

• Lead routing and assignment
• Contact tagging and segmentation
• Task reminders and automated follow-ups
• Integration with IDX, email, and text messaging
• Reporting and performance dashboards

Team Communication Platforms

Team communication platforms support daily collaboration, file sharing, and internal messaging. These platforms help teams stay organized and reduce dependency on email or text threads.

Popular options include:

• Slack: Organizes conversations by channel
• Microsoft Teams: Integrates with Microsoft 365
• Zoom: Used primarily for video meetings
• Google Chat and Meet: Included with Google Workspace

Growing Your Team for the Future

Building a successful real estate team involves decisions about structure, leadership, systems, and long-term goals. Teams can help distribute tasks, provide support, and increase capacity, but they also introduce new responsibilities.

Technology plays a central role in how teams function. Systems for lead management, communication, training, and marketing impact team performance and client experience. A strong online presence helps teams share a consistent message, attract new clients, and support recruitment efforts.

The right website platform can support branding, lead generation, and collaboration. AgentFire offers website solutions for real estate teams that include tools for content creation, IDX integration, and team member pages that connect back to a central brand.

To explore how AgentFire can support your team’s online presence, Schedule A Demo.

Frequently Asked Questions About Real Estate Teams

How do real estate teams split commission with new agents?

New agents on real estate teams typically receive a 50/50 split when the lead is provided by the team, and up to a 70/30 split if they generate the lead themselves. The exact rate depends on experience, role, and how the client was sourced.

What makes a successful real estate team structure?

A successful structure includes clearly defined roles, consistent systems for managing tasks and clients, and leadership that provides direction and accountability. Teams with operational clarity and regular communication perform more consistently.

How many agents should be on a real estate team?

Real estate teams often range from 2 to over 20 agents, but teams with 5 to 7 members and defined responsibilities across roles are the most common and stable size for effective operations.

What are the legal requirements for forming a real estate team?

Legal requirements vary by state and usually include registering the team name with the local licensing authority, following team advertising rules, and ensuring all members are affiliated with the same brokerage. Some states also require team agreements or disclosures.