RISMedia's Real Estate Magazine

FEB 2019

Real Estate magazine is the industry's leading source for real estate news and information since 1980. Published monthly by RISMedia, Real Estate magazine offers timely and relevant real estate news to the industry's top brokers and agents.

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34 February 2019 RISMedia's REAL ESTATE "We have been an S corp for the past 11 years, formerly an LLC. At the advice of our accountant, we switched to the S corp for a more favorable tax situation," says Leigh Reed, senior vice president/partner of Heller Coley Reed at Long & Fos - ter Real Estate. "Once the S corp paperwork was drafted, before it was filed with the state, we did have to pass it through the Long & Foster legal department to be sure we had their blessing, so they would be able to pay us as a corporation." Reed has worked in the real es - tate industry for 30 years. Her team is made up of three partners, three staff members, one assistant and 11 agents. When it comes to teams that work in more than one state, the legali - ties of broker-imposed regulations can become a little more complex. Guidelines vary between states and are changing quickly. "In Maryland, we do have a few ex - tra layers of broker supervision that do not yet exist in Washington, D.C., or Virginia," says Reed. "Some of this has to do with advertising rules in Maryland relative to team disclo - sure, and some is the contract law that forms the legal chain from the individual agent in a transaction, to their team leader or associate bro - ker, to the sales office manager, to the state broker of record." Setting Expectations and Goals With Core Values Although not always written out, core values are a set of goals and rules by which all companies run their busi - ness. When forming a team, these values can be the glue that holds all members together. Most teams use their core val - ues as a type of contract by which their agents must abide. Jeff Ruff, president of Vutech Ruff at HER REALTORS®, formed his team in 1993 with his wife, Marilyn. The team currently has 11 licensed agents. "We look for team members with very good communication skills," he explains. "We are very specific about the personalities of our team mem - bers and their work ethic, as the reputation of each person is critical to our team's reputation." Todd Crockett, partner at The Crockett Team of Howard Hanna Real Estate, has worked in real es - tate for 40 years, 24 of which have been spent on a team. Currently, he manages a team of 20 agents, a marketing manager, a listing ser - vice manager and two closing coor- dinators with his wife, Judie, as his partner. The Crockett Team Core Behaviors were created as the team evolved, focusing around six guiding behaviors that set them apart from the competition: Collaboration, Inno - vation, Adaptation, Implementation, Clarification and Reiteration. "The Crockett Team lives and breathes the Core Behaviors that instill camaraderie amongst the team - mates," says Crockett. Tackling Financial Challenges Knowledge is power when it comes to numbers; therefore, it is impera - tive that team leaders stay up-to- date on finance language and the diverse options available for payroll, accounting, bookkeeping, etc. "We keep it very simple. Selling members are given a percentage of every deal and support members are paid hourly, plus bonuses on each listing and each closing. This way, everyone has skin in the game and stays excited," says Steve Abbe, co-team leader of Abbe/Mullinnix Distinctive Properties at Coldwell Banker Global Luxury in Florida. "The support members are paid as inde - "At the advice of our accountant, we switched to the S corp for a more favorable tax situation." LEIGH REED SVP/PARTNER HELLER COLEY REED LONG & FOSTER REAL ESTATE "We are very specific about the personalities of our team members and their work ethic, as the reputation of each person is critical." JEFF RUFF PRESIDENT, VUTECH RUFF HER REALTORS ® "The Crockett Team lives and breathes the Core Behaviors that instill camaraderie amongst the teammates." TODD CROCKETT PARTNER, THE CROCKETT TEAM HOWARD HANNA REAL ESTATE

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