You may have heard a popular saying that says: “If you want to get there faster, walk alone. If you want to go further, go as a group”. Some real estate agents have understood that making real estate partnerships can be a way of strengthening sales, reaching further into the profession.
However, this issue still raises many doubts. Therefore, we decided to write an article with all the details present in this type of professional partnership.
If you want to understand about the subject, read the article until the end!
Real estate partnerships: the value of information
In practice, the great advantage of making real estate partnerships is having access to varied sources of information spread throughout the city. It is very difficult for a broker to know all the opportunities that exist in a region, mapping people interested in buying real estate and verifying owners who want to sell.
For this reason, many professionals come together, creating contact networks that support each other, generating sales opportunities.
Joining a group
One of the most common ways to make real estate partnerships is by looking for former co-workers. It is very important that brokers trust each other.
Some professionals resort to groups on social networks. In that case, talk to members of the group and check for complaints about the division of commissions.
Regardless of whether you are part of a virtual community or with people you already knew, it is very important that the form of profit sharing is clear.
The most common method for splitting commission on real estate partnerships is fifty-fifty. The broker who introduced the buyer gets half of the commission and the other part is for the professional who showed the property.
However, these two brokers are not always part of the same community. It is possible that a third professional is the link between the two. In this scenario, the commission can be divided as follows: 1% for the broker who introduced the two professionals and 2% for each of the two remaining brokers.
One last suggestion is to draw up a real estate partnership contract. This document must be written clearly, preferably with the support of a real estate lawyer.
The disadvantages of real estate partnerships
The main disadvantage is the profit sharing. If you have a good network, an established customer base and an efficient marketing strategy, you may not need real estate partnerships.
The possible disagreements caused by communication, personality or performance failures are another disadvantage of this process. Many professionals have different ways of acting and the partnerships end up going wrong for that.
The advantages of real estate partnerships
The main advantage is the optimization of sales, as the broker will have access to several properties and clients. Many brokers, newcomers to the market, do not have information, professional experience or an established network of contacts. This hinders sales, making them discouraged from brokerage.
Real estate partnerships can serve as a safety net for young professionals. Furthermore, in a time of economic recession, it may be more advantageous to have half a commission than not to make any profit.
As we saw in this article, real estate partnerships can be used to increase sales and strengthen a realtor’s brand, enabling the growth of his performance.
If you liked this article, share it with your fellow brokers on your social networks. Who knows, maybe a partnership will emerge? To the next!