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Inman Connect Las Vegas 2024 was a landmark event that brought together the brightest minds in real estate to discuss the future of the industry. My session, “The Team of 2030,” explored how real estate teams could evolve over the next decade. Here are the key insights and takeaways from that session, providing a roadmap for real estate professionals looking to future-proof their teams.
Today’s disruption: Navigating a complex landscape
The real estate industry is currently facing a multitude of disruptions that are reshaping the market landscape. These include higher interest rates, political polarization, class action lawsuits, limited inventory, low availability of skilled labor, inflation and shifting consumer perceptions of agent value. These factors are creating a challenging environment that requires real estate professionals to adapt and innovate continuously.
From amateurs to professionals: The need for specialization
As the industry evolves, there is a growing need for real estate agents to transition from generalists to specialists. Specialization is becoming key, with agents focusing on niche markets or specific aspects of the real estate process. This shift is accompanied by a move towards a fee-for-service model, where fees are variable and based on performance. Relationships will remain crucial, but professionals who can build and maintain strong relationships will create a significant separation from lower-tier agents.
The next team: Evolution of team structures
Historically when there is disruption in any industry new business models arise. The key to thriving in a changing market is to be aware of what is possible, and be the change the industry needs to see. The structure of real estate teams is also set to change dramatically.
Currently, a typical team might consist of one listing partner and three buyer’s agents and an administrator or client care coordinator. However, the future team might include three listing partners and six to eight salaried buyer’s representatives, who will be compensated hourly — plus bonuses.
This shift reflects a move towards more stable and predictable income for team members while focusing on the area of real estate where there is no confusion on who or how an agent will get paid. Listing-focused teams will dominate in the marketplace and find new ways to show homes and represent buyers.
Lead generation strategies will also evolve. While current teams focus heavily on buyer leads, future teams will need to leverage AI and predictive analytics to generate high-quality listing leads. These advanced technologies will become premium tools that differentiate successful teams from the rest.
We see that by simply changing the focus from buyers to a more seller focus, teams have found that the sellers are hiding in the buyer leads — meaning that there is an abundance of leads if you are skilled at conversion, as well as relationship building.
Tiered service model and profit share: A new approach to compensation
Future real estate teams may adopt a tiered service model, offering different levels of service and compensation. Operational costs and salaries will be covered first, with remaining profits shared among team members based on predetermined criteria such as seniority, performance, role, and contribution to the company’s revenue. Team agents will be compensated based on the service level sold, with higher compensation for higher-tier packages, similar to a law firm’s structure.
Investor equity model: Aligning interests for success
Another innovative approach is the investor equity model, where teams partner with investors for equity and profit sharing. This model aligns the interests of the team agent and investors in the success of the property. Instead of traditional commissions, team compensation is tied to the higher returns generated by successful property investments on both the buyer and seller sides of the transaction
Uberization of buyer’s agents: On-demand services
The concept of “Uberization” is set to revolutionize the role of buyer’s agents. Imagine buyers being able to download a free homes for sale app, similar to a Zillow, Homes.com or even your public-facing MLS app, that includes all listed homes, “For Sale By Owner” (FSBO) properties, and expired listings (with opt-in).
Buyers can schedule showings with agents — whose ratings, reviews and fees are posted. This model offers on-demand services, with fees ranging from $50 to $100 plus additional a la carte services such as making offers, handling inspections and transaction management.
With this model, agents close to a home may get more opportunities to have a paid single-home agreement with the buyer and then develop a relationship and convert that buyer into a long-term buyer’s agreement.
The collaborative team structure: A shift from hierarchy
Future real estate teams may find ways to operate more like collectives, with no hierarchical structure. Decision-making responsibilities will be shared, and compensation will be distributed more equally. Additional rewards will be given for leadership roles and mentorship within the team. This collaborative approach fosters a more inclusive and supportive team environment.
So what … now what?: Adapting to new realities
The real estate industry has evolved from broker-centric models of the 1970s, where brokers controlled lead flow and splits were favorable to the brokerage, to team-centric models of the mid-2010s to 2020s, where significant margins moved to team leaders. The future will be consumer-centric, focusing on serving clients regardless of the opportunity. Team leaders who contribute to the overall success of their agents will have a massive advantage. Teams and brokers that do not contribute to their agents’ success will not survive, while those providing massive opportunities and innovation will thrive under new business models.
Refuse to pause: Embracing innovation
Real estate professionals must pay attention to ongoing changes and adapt accordingly. Partnering with innovative people and companies, and being open to new models and ideas, is crucial. Leaders would be well served to define what success looks like in advance and be committed to innovation; even if most attempts don’t work, agents will appreciate the proactive growth strategies.
Consistency in creating awareness, defining results, and making course corrections is essential. Those who wait on the sidelines for the industry to provide opportunities will be left behind.
The call to innovate
I’ve always said, “Those who innovate, are well-coached, and proactive have tremendous opportunities to take market share and thrive amidst uncertainty.” These agents, brokers, and team leaders will be the pioneers of the next decade. The choice is clear: innovate and lead, or stand quietly by and watch those who do.
Inman Connect Las Vegas 2024 provided a glimpse into this exciting future, offering valuable insights for real estate professionals looking to stay ahead of the curve. The team of 2030 will be defined by its ability to adapt, innovate and provide exceptional value to clients in a rapidly changing landscape.
Verl Workman is founder and CEO of Workman Success Systems. Connect with him on LinkedIn or Instagram.
