Real estate office buildings 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 real estate brokerage will be hemorrhaging, and all that will keep this archaic business design alive is consolidations. As offices close, some agents quit, however the survivors move their licenses to some other sinking ship, a ship that appears just like the last one and frequently with the same name on the bow.
A big franchise office closes it’s doors, no longer able to keep the lights on after more than a year of operating in the red. The agents are worried sick, not knowing what they will carry out, until their savior walks in the entranceway.
A broker from a large bricks-and-mortar across town with exactly the same franchise offers to take all of the agents in with the exact same contract terms: each real estate agent pays $600 monthly and keeps 100% of these 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 help make the broker enough money on commission splits, any kind of split wouldn’t seem sensible for the broker nowadays. keenans estate agent blackburn A sharp agent will charge each real estate agent a monthly fee. He laughs all the way to the bank, because with 60 agents paying $600 monthly, he’s making $36,000 a month just for living.
3 years ago I sat over the desk from the franchise broker who looked at me and said, “Well, we’re feeding the business enterprise every month. You need to do that whenever times are tough. But we’ve been through a down economy before, and we always turn out okay.” I remember thinking to myself that has been a silly thing to state coming from a man who told me he previously no business plan, no budget for marketing, no written vision for future years of his business. Sadly, that same broker just simply issued a press release that he is permanently closing the doors of his bricks-and-mortar and you will be hanging his permit with another bricks-and-mortar. Another consolidation.
This broker is merely jumping from one sinking ship to 1 that hasn’t sunk yet. The new ship has a lot of leaks, and it may take a while for individuals on the Titanic to wake up. Bricks-and-mortar real estate brokerages that stubbornly won’t bridge the gap to an entirely home based business model will die a gradual and painful death. It’s one thing for brokers to ride their own ship down, but it is quite another thing altogether for all those brokers to market tickets to realtors with promises they can’t keep.
Probably the most unfortunate thing about all this is that the agents who think they are doing what it takes to survive are just re-arranging the deck chair on the Titanic. Most of them truly do not know or comprehend how precarious their fate is usually. Many of them do have an uncomfortable feeling, and they know something is wrong with their business model. Just like so many of the passengers on the Titanic near the conclusion who smiled and kept saying, “Don’t worry, everything always works out alright,” traditional agents continue to greet people with a smile and await the phone to ring. However 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 several years struggle to think in entirely new methods. What makes this especially problematic for so many is their distress with technology and the web. Some simply won’t learn the technologies. I understand of a high producer who refuses to adjust, and he sincerely believes he can delegate most of the responsibilities to his assistant. Several assistants are going to spend night and day understanding and adapting for a boss, and if they do and abandon someday, where does that abandon the agent? Even successfully delegating leaves serious difficulties in bridging the gap, that i will share later.
There’s been a huge change, but not all agents and agents recognize what is happening. Most do not comprehend that they are in the middle of a major earthquake. Therefore, they continue to do what they always have done. Underlying each one of these changes is something very major that traditional brokers are missing. Just as it is powerful forces that step tectonic plates deeply below the earth’s surface, we have been experiencing powerful forces causing an earthquake in the real estate world. Much like so much in existence, 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 really is this driving force that many brokers and agents have not recognized.
Here is the first tectonic force that’s at the root of most these changes effecting the true estate industry: a change in consumer behavior. Granted, it is a huge change in consumer habit. It’s so big with consequently many implications, a lot of people don’t comprehend it.
The full description of the changes in consumer behavior will be quite long, but this is a brief summary in the context of the real estate business. Consumers are no more willing to be sold with obnoxious advertising and marketing and told what things to buy and when to buy it. Consumers are fed up with interruption advertising, of billboards, of ruthless salesmen, of telemarketing, and of misrepresentations and boldfaced lies. Customers have had it with expert conflicts of interest. They’re fed up with only getting partial information where to base their most significant decisions. Buyers want and demand freedom to regulate their own destiny. They don’t like being controlled. They don’t like being manipulated.
The second tectonic force effecting such spectacular changes in the true estate industry is powerful in its own right, but also acts as a catalyst for the changes in consumer behavior.
The catalyst which has empowered buyers and is forcing these alterations that are the death knell of conventional property brokerage is… advances in systems.
The traditional brokerage business model has been totally unequipped to cope with these tectonic shifts. The impact of the true estate recession has accelerated this process to be certain, but only in time. Had it not been because of this recession, the impact of these changes in consumer behavior could have taken longer, however the impact would ultimately function as same. The recession has acted like a diversion, however, distracting real estate agents from the real cause of their doom.
I’m reminded of the newspaper salesman who attempted to sell me expensive print advertising lately. I ask him, “Why would I market in the newspaper when it hasn’t sold some of my real estate listings previously yr? Help me out. Why should I advertise in your document?” His reaction while soft-spoken and polite, seemed to be of the same mindset as many real estate brokers today, “Well, you don’t wish to be left out when your competition is advertising, do you?” In response 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 could no longer include myself, and I broke out laughing. We used that collection in sales 30 years ago. Are they still using that line? Yes, they’re.
Apparently, that kind of sales pitch still works with many real estate agents and brokers, because like flies bouncing off the plate cup windows in a futile effort to escape from bondage, many agents remain doing what they admit doesn’t work very well anymore. Whatever we were doing that has been not working before must be done twice as fast now. If the ship you are on is sinking, be quick about your business and join another ship similar to the last one. Such behavior is usually insanity and a ticket to failing.
More real estate agents have filed for bankruptcy defense before two years than at any time in U.S. Background. And the earthquake has not ended as many bricks-and-mortar brokers are on the verge of closing their doorways soon.
It is the early adopters of new business models and new technologies who will be the millionaire real estate agents in the years to come. Because time can be truncated with the accelerating speed of the growth of technologies and the use of the Internet, those who pause too long to take into account doing something will be left so far behind, they may never catch up. Think of a space ship going into warp speed. Those that missed the flight will find themselves light a long time behind their colleagues. This is one way 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 reach clients, and mastering the web as a powerful medium.