The sparse hunting grounds of the 2010 real estate market may be spurring a field of lone wolves to form into packs, as more brokerages find themselves hosting not only independent agents, but real estate teams as well.

During the industry’s recent rough patch, some may wonder why any agent would be willing to split a commission with a teammate. Commission splits vary from team to team. Some teams may work within a larger brokerage, divvying up the agent’s portion of their commissions among themselves, while still splitting fees with their broker.

But agents who have embraced the model say it offers many advantages, including the ability to leverage the unique skills and market knowledge of team members and to provide better client services.

And as teams grow more established and gain notoriety in a marketplace, they may eventually move on to form their own brokerage, retaining 100 percent of commissions for team members.

Peter Casey, broker-owner of Prudential Wilmot Whitney Real Estate said having a team based in a brokerage can be very beneficial for a broker. Although having to negotiate with more than one person can present complications, the client service advantages a well-functioning team presents can do much to improve the parent brokerage’s reputation as well.

Two For One

The arrangement also has personal benefits. For a client who has been debating when to move for a year, “when you’re finally ready to list your property in 30 or 60 days, there’s nothing more distressing than your agent being on vacation for two weeks,” said Joanne Paleo, of the Tom and Joanne Team of Weston’s Prudential Wilmot Whitney Real Estate. Being part of a team allows an agent to take a few days off without worrying about offending a client and losing a lead.

Having a fellow agent with which to discuss marketing plans and listings prices can also bring new insights.

“The clients love that,” said Sherrie Calvano of Team Calvano in Lancaster, a partnership with her husband. “You’re getting two agents for the price of one.”

More importantly, forming a team allows both agents and their support staff to specialize in the areas in which they excel, processing listings more efficiently. A team member whose strength lies in marketing may design ads, while the better negotiator or people person handles showings and closings, for example.

Such efficiencies allow teams to handle more listings, improving deal flow.

“As much as the high-end market is a very attractive and lucrative place to work, 50 percent of the transactions out there are first-time homebuyers,” Paleo said. Being able to handle more listings allows teams to cultivate both types of clients, helping to establish a network for future sales. Paleo’s team closed 30 deals last year and recently won an award from their brokerage for being among the top-selling 3 percent of Prudential agents nationwide.

Constance Cervone of Cervone Deegan & Assoc. agrees. Cervone and her partner, Janet Deegan, have a dedicated associate who handles smaller properties and much of the back-end support work. This, in turn, frees up Cervone and her partner to focus on high-end clientele.

“Agents who have 25 years of experience don’t spend a lot of time selling small units,” she said. “But you need those units to keep your business balanced.”

With the Internet replacing traditional marketing techniques and requiring agents to learn new technologies and find new ways to promote their listings, Cervone said, “there’s just so much more to do, and I don’t know how a single agent does it.”

Like A Machine

Many teams are partnerships. But a two- or three-person team is not the only model; further expansion allows for further specialization and allows agents to offer more professional services.

Donna Chase moved to the team model in 1996 after years in the industry, and now runs The Chase Team, an 11 person shop for which she is the broker-owner. Her team includes listing agents, buyer’s agents, a marketing manager, a client care manager and field staff that put up signs, maintain flyer boxes, and take measurements and photos of listings.

With such a wide-ranging staff, properties can be prepared for market right away and interested buyers can quickly arrange showings.

“It’s like a machine,” she said. “It really works very well.”

Chase also points out that sharing commissions prepares the way for sharing other information. Independent agents might be reluctant to share know-how on how to handle unusual sales or tips on what appeals to buyers in a certain neighborhood to a potential competitor, but that’s not a problem in her office.

But there are disadvantages to be wary of.

“Real estate’s a tough field because there’s so much ego involved, so it can be hard,” to find a partner comfortable with splitting commissions equally, said Tom Matthews, Paleo’s partner.

“You have to negotiate everything,” said Cervone. “You can’t just do everything you want to do your way. If you’re a team player, that works. If you’re not, it’s more challenging.”

Costs are also a factor. For newer agents still seeking the guidance and support of a broker, forming a partnership means splitting commissions but still paying just as many fees.

“We pay double super-key, double everything,” said Calvano. “There’s no advantage to that.”

Larger teams with support staff face different issues.

“If it’s not a great year, we still have to pay [our associate],” said Cervone, “and that’s expensive.”

But with the Internet providing endless avenues for agents to make a name for themselves, while at the same time requiring more technical and marketing expertise to stand out, being a part of a successful team may become more important than being part of a brand-name brokerage.