Real estate workplaces are closing from coast to coast. Real estate agents are usually hanging up their licenses atlanta divorce attorneys state. The traditional bricks-and-mortar real estate brokerage is certainly hemorrhaging, and all that continues this archaic business model alive is consolidations. As offices close up, some agents quit, however the survivors move their licenses to another sinking ship, a ship that appears similar to the last one and frequently with the very same name on the bow.
A big franchise office closes it’s doors, no longer able to keep carefully the lights on after more than a year of operating in the red. The agents are worried sick, not knowing what they’ll carry out, until their savior walks in the entranceway.
A broker from a large bricks-and-mortar anywhere with exactly the same franchise offers to take all of the agents in with the exact same contract terms: each agent pays $600 monthly and keeps 100% of their commissions. The brokers sigh in relief and rapidly sign the new contracts like sheep to the slaughter.
Because the broker can’t generate enough potential clients for the agents, and since the agents aren’t selling enough to help make the broker enough funds on commission splits, any type of split wouldn’t make sense for the broker nowadays. houses for sale longcroft A sharp agent will charge each realtor a monthly charge. He laughs completely to the bank, because with 60 agents paying $600 monthly, he’s making $36,000 per month just for living.
3 years ago I sat over the desk from a franchise broker who looked at me and said, “Well, we’re feeding the business every month. You have to do that whenever times are tough. But we’ve been through a down economy before, and we always come out okay.” I remember thinking to myself that has been a silly thing to state from the man who told me he had no business plan, no cover marketing, no written vision for future years of his business. Unfortunately, that same broker only issued a press release he is permanently closing the doors of his bricks-and-mortar and will be hanging his license with another bricks-and-mortar. Another consolidation.
This broker is only jumping from one sinking ship to one that hasn’t sunk yet. The brand new ship has plenty of leaks, and it may take a while for individuals on the Titanic to awaken. Bricks-and-mortar real estate brokerages that stubbornly won’t bridge the gap to an entirely new business model will die a gradual and painful death. It’s one thing for brokers to ride their very own ship down, but it is fairly another thing altogether for all those brokers to market tickets to real estate agents with promises they can not keep.
The most unfortunate thing about all of this is that the agents who think they’re doing what must be done to survive are just re-arranging the deck seats on the Titanic. Many of them truly have no idea or comprehend how precarious their fate can be. Most of them do have an uncomfortable feeling, and they know something is wrong making use of their business model. Exactly like so lots of the passengers on the Titanic close to the stop who smiled and kept saying, “Don’t worry, everything always works out alright,” traditional agents continue steadily to greet people with a smile and await the phone to ring. However the ship is tilting, and they are at risk. They just don’t know what to do.
This is the great issue of being stuck. It’s the classic inability to think beyond oneself. Traditional brokers and agents who have operated within a traditional brokerage model for several years struggle to think in entirely new ways. What makes this especially problematic for so many is their soreness with technology and the Internet. Some simply refuse to learn the technologies. I know of a top producer who refuses to adjust, and he sincerely believes he can delegate many of the responsibilities to his assistant. Few assistants are going to spend night and day studying and adapting for a boss, and if they do and abandon someday, where does that depart the realtor? Even successfully delegating leaves major problems in bridging the gap, that i will share later.
There’s been a huge change, but not all agents and agents recognize what’s happening. Most do not comprehend that they are in the center of a significant earthquake. Therefore, they continue steadily to do what they always have done. Underlying each one of these changes is something very large that traditional brokers are missing. Just as it is powerful forces that step tectonic plates deep below the earth’s surface, we are experiencing powerful forces creating an earthquake in the true estate world. As with so much in living, what we see at first glance is merely a symptom of a deeper plus much more significant trend that is actually the driving force. It is this driving force that many brokers and agents haven’t recognized.
This is actually the first tectonic force that is at the root of all these changes effecting the real estate industry: a change in consumer behavior. Granted, it is a huge change in consumer habits. It’s so big with thus many implications, a lot of people don’t comprehend it.
The full description of the changes in consumer behavior would be quite long, but here is a brief summary in the context of the true estate business. Consumers are no more willing to be sold with obnoxious marketing and told what to buy and when to buy it. Consumers are sick and tired of interruption marketing, of billboards, of high pressure salesmen, of telemarketing, and of misrepresentations and boldfaced lies. Customers have had it with experienced conflicts of interest. They’re sick and tired of only getting partial information where to base their most significant decisions. Buyers want and demand freedom to control their own destiny. They don’t like being controlled. They don’t really like being manipulated.
The second tectonic force effecting such dramatic changes in the true estate industry is effective in its own right, but additionally functions as a catalyst for the changes in consumer behavior.
The catalyst which has empowered consumers and is forcing these changes that are the death knell of conventional property brokerage is… advances in engineering.
The traditional brokerage business model has been totally unequipped to cope with these tectonic shifts. The influence of the real estate recession has accelerated this technique to be certain, but only with time. Had it not been because of this recession, the impact of these changes in consumer behavior would have taken longer, but the impact would ultimately be the very same. The recession has acted such as a diversion, however, distracting realtors from the real cause of their doom.
I’m reminded of the newspaper salesman who tried to market me expensive print advertising recently. I talk to him, “Why would I promote in the newspaper when it hasn’t sold some of my real estate listings before yr? Help me out. Why should I advertise in your papers?” His response while soft-spoken and polite, seemed to be of the same mindset as many real estate agents today, “Well, you don’t want to be left out whenever your competition is advertising, do you?” In reaction to my blank stare, he pleaded, “When business is slow, it’s not the time to avoid advertising. It’s the time and energy to advertise as part of your!” That’s when I could no longer have myself, and I broke out laughing. We used that line in sales 30 years ago. Are they nevertheless using that line? Yes, they’re.
Apparently, that kind of sales page still works with many real estate agents and brokers, because like flies bouncing off the plate glass windows in a futile effort to flee from bondage, many agents are still doing what they admit fails very well any more. Whatever we were doing that was not working before must be done twice as fast today. If the ship you’re on is sinking, be quick about your business and jump on another ship just like the last one. Such behavior is definitely insanity and a ticket to failure.
More real estate brokers have filed for bankruptcy coverage in the past two years than at any time in U.S. History. And the earthquake have not ended as many bricks-and-mortar agents will be on the verge of closing their doorways soon.
It’s the early adopters of home based business models and new technologies who will be the millionaire realtors in the a long time. Because time is usually truncated with the accelerating tempo of the growth of technology and the usage of the Internet, those who pause too long to think about doing something will undoubtedly be left so far behind, they could never catch up. Think of a space ship entering warp speed. Those who missed the flight will see themselves light decades behind their colleagues. This is how it will be for traditional real estate agents who insist on staying behind.
There is an answer, also it means embracing technology, new marketing techniques, new tools to attain clients, and mastering the Internet as a powerful medium.