Real estate workplaces are closing all over the country. Real estate agents happen to be hanging up their licenses atlanta divorce attorneys state. The traditional bricks-and-mortar property brokerage can be hemorrhaging, and all that continues this archaic business model alive is consolidations. As offices in close proximity, 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 large franchise office closes it’s doors, no longer able to keep the lights on after greater than a year of operating in the red. The agents are worried sick, not knowing what they’ll perform, until their savior walks in the door.
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 realtor pays $600 monthly and keeps 100% of their commissions. The agents sigh in relief and rapidly sign the new agreements like sheep to the slaughter.
Since the broker can’t generate enough prospects for the agents, and since the agents aren’t selling enough to make the broker enough funds on commission splits, any type of split wouldn’t seem sensible for the broker nowadays. keenans estate agents great harwood A sharp agent will charge each agent a monthly rate. He laughs all the way to the bank, because with 60 brokers paying $600 per month, he’s making $36,000 per month just for living.
Three years ago I sat across the desk from a franchise broker who viewed me and mentioned, “Well, we’re feeding the business enterprise every month. You have to do that when times are tough. But we have been through a down economy before, and we always come out okay.” I recall thinking to myself that has been a silly thing to state from the man who told me he previously no business plan, no budget for marketing, and no written vision for the future of his business. However, that same broker simply just issued a press release that he is permanently closing the doorways of his bricks-and-mortar and you 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 might take a while for individuals on the Titanic to awaken. Bricks-and-mortar real estate brokerages that stubbornly won’t bridge the gap to a completely new business model will die a sluggish and painful death. It’s one thing for brokers to ride their own ship down, but it is fairly another thing altogether for those brokers to market tickets to real estate agents with promises they can not keep.
Probably the most unfortunate thing about all this is that the brokers who think they are doing what must be done to survive are only re-arranging the deck chair on the Titanic. Most of them truly have no idea or comprehend how precarious their fate is certainly. Many of them do have a distressing feeling, and they know something is wrong with their business model. Exactly like so lots of the passengers on the Titanic close to the end who smiled and kept expressing, “Don’t worry, everything always works out alright,” traditional agents continue to greet people who have a smile and wait for the phone to ring. But the ship is tilting, plus 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 brokers who have operated inside a traditional brokerage model for quite some time battle to think in entirely new methods. What makes this especially problematic for so many is their soreness with technology and the Internet. Some simply won’t learn the technologies. I understand of a high producer who refuses to adjust, and he sincerely believes he can delegate a lot of the responsibilities to his assistant. Very few assistants are likely to spend night and day learning and adapting for a boss, and if they do and abandon someday, where does that leave the real estate agent? Even successfully delegating leaves serious issues in bridging the gap, which I will share later.
There’s been an enormous change, however, not all agents and agents recognize what is happening. Most do not comprehend that they are in the center of a major earthquake. Therefore, they continue to do what they always have done. Underlying all these changes is something very big that traditional agents are missing. Just as it really is powerful forces that step tectonic plates deeply below the earth’s surface, we have been experiencing powerful forces leading to an earthquake in the true estate world. Much like so much in living, what we see on the surface is merely a symptom of a deeper and many more significant movement that is actually the driving force. It is this driving force that lots of brokers and agents have not recognized.
This is actually the first tectonic force that is at the root of all these changes effecting the true estate industry: a change in consumer behavior. Granted, it is a huge change in consumer behaviour. It’s so big with therefore many implications, most people don’t comprehend it.
The full description of these changes in consumer behavior would be quite long, but here is a brief summary in the context of the real 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. Consumers have had it with professional conflicts of interest. They’re sick and tired of only getting partial information upon which to base their most important decisions. Customers want and demand freedom to regulate their own destiny. They don’t really like being controlled. They don’t like being manipulated.
The second tectonic force effecting such spectacular changes in the real estate industry is strong in its own right, but also functions as a catalyst for the alterations in consumer behavior.
The catalyst which has empowered customers and is forcing these improvements which are the death knell of classic property brokerage is… advances in technologies.
The traditional brokerage business design has been totally unequipped to deal with these tectonic shifts. The effect 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 identical. The recession has acted such as a diversion, however, distracting real estate agents from the real cause of their doom.
I’m reminded of the newspaper salesman who tried to sell me expensive print advertising just lately. I ask him, “Why would I market in the newspaper when it hasn’t sold any of my real estate listings in the past year or so? Help me out. Why should I advertise in your papers?” His reply while soft-spoken and polite, has been of exactly the same mindset as many real estate brokers 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 more than ever!” That’s when I possibly could no longer include myself, and I broke out laughing. We used that collection in sales 30 years ago. Are they nevertheless using that line? Yes, they are.
Apparently, that kind of sales pitch still works with many real estate agents and brokers, because like flies bouncing off the plate glass windows in a futile energy to flee from bondage, many agents remain doing what they admit fails very well any more. Whatever we were doing that was not working before should be done twice as fast right now. If the ship you’re on is sinking, be quick about your business and join another ship just like the last one. Such behavior is definitely insanity and a ticket to inability.
More real estate agents have filed for bankruptcy protection before two years than at any time in U.S. Record. And the earthquake have not ended as many bricks-and-mortar brokers will be on the verge of closing their doors soon.
It is the early adopters of new business models and new technologies who’ll be the millionaire realtors in the years to come. Because time can be truncated with the accelerating speed of the growth of systems and the usage of the Internet, those that pause too long to think about doing something will be left so far behind, they may never catch up. Think about a space ship going into warp speed. Those that missed the flight will see themselves light yrs behind their colleagues. This is one way it will be for traditional realtors who insist upon staying behind.
There is an answer, and it means embracing technology, new marketing methods, new tools to reach clients, and mastering the web as a powerful medium.