While working in real estate is highly rewarding and lucrative, you probably are looking forward to retirement. Succession planning is crucial in this case, as it allows you to identify the appropriate individuals with the right leadership skills to take over your job duties after you retire. Plan for the future and ensure the long-term success of your business by following these steps.

How to Form a Succession Plan

1. Get Started Early

Even if you're not planning on retiring any time soon, it helps to think about your successor in advance. Choosing the right candidate and getting them up to speed can take years in some cases. Accordingly, waiting until you're close to retirement may not provide enough time to make the best decision for your real estate business. Start identifying candidates now so you'll be ready when the time comes.

2. Think About Qualifications

Ask yourself what it takes to become an excellent real estate agent. Your successor will need to be knowledgeable, friendly, and proactive, and they'll need to have great communication skills. Make a list of characteristics going from most to least important, and use it to vet potential candidates. Be honest about criteria and whether or not a prospective candidate fits the bill. 

3. Train Your Candidate

Once you've made your decision, the next step is to begin passing your knowledge on. A hands-on approach is usually best in the real estate field, but you'll also want to share insights and advice you've gathered over the years. Even the best candidate must be brought up to speed before assuming the role, so don't neglect this portion of succession planning. 

EXIT Realty Upper Midwest makes it easy for their agents to perform proper succession planning. Those introducing recruits into the agency can earn a 10% sponsoring residual based on the recruits’ commission. Upon retirement, this is converted into a 7% retirement residual, which remains available as long as the recruit continues working for the company. This formula shows EXIT’s true dedication to its agents, who can work from any of their North Dakota, South Dakota, Iowa, Minnesota, Wisconsin, or Illinois locations. Visit their website for more information on residuals, or call (651) 505-3570 to speak with a team member today.