Real estate offices are closing all over the country. Real estate agents are usually hanging up their licenses atlanta divorce attorneys state. The traditional bricks-and-mortar property brokerage is hemorrhaging, and all that helps to 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 similar to the last one and often with the 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 come to mind sick, not knowing what they’ll perform, until their savior walks in the door.
A broker from a large bricks-and-mortar anywhere with 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 their commissions. The brokers sigh in relief and rapidly sign the new contracts like sheep to the slaughter.
Since the broker can’t generate enough network marketing leads for the agents, and since the agents aren’t selling enough to make the broker enough money on commission splits, any kind of split wouldn’t make sense for the broker nowadays. highfield road A sharp broker will charge each broker a monthly price. He laughs completely to the bank, because with 60 brokers paying $600 per month, he’s making $36,000 a month just for living.
Three years ago I sat across the desk from the 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 turn out okay.” I remember thinking to myself that has been a silly thing to say from the man who told me he previously no business plan, no cover marketing, no written vision for future years 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 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 property brokerages that stubbornly won’t bridge the gap to an entirely home based business model will die a slow and painful death. It’s a very important factor for brokers to ride their very own ship down, but it is quite another thing altogether for those brokers to sell tickets to realtors with promises they can not keep.
Probably the most unfortunate thing about all this is that the agents who think they’re doing what it takes to survive are just re-arranging the deck chairs on the Titanic. Most of them truly do not know or comprehend how precarious their fate will be. Many of them do have a distressing feeling, plus they know something is wrong with their business model. Just like so many of the passengers on the Titanic close to the ending who smiled and kept stating, “Don’t worry, everything always computes alright,” traditional agents continue steadily to greet people with a smile and await the phone to ring. But the ship is tilting, plus they are at risk. They just have no idea what to do.
This is the great dilemma of being stuck. It’s the classic inability to think beyond oneself. Traditional brokers and agents who have operated inside a traditional brokerage model for several years battle to think in entirely new methods. What makes this especially problematic for so many is their pain with technology and the Internet. Some simply refuse to learn the technologies. I understand of a top producer who refuses to adjust, and he sincerely believes he is able to delegate many of the responsibilities to his assistant. Several assistants are going to spend night and day mastering and adapting for a boss, and if they do and leave someday, where does that abandon the real estate agent? Even successfully delegating leaves significant difficulties in bridging the gap, that i will share later.
There’s been an enormous change, but not all agents and brokers recognize what’s happening. Most do not comprehend that they are in the center of a major earthquake. Therefore, they continue steadily to do what they always have done. Underlying all these changes is something very major that traditional agents are missing. Just as it really is powerful forces that step tectonic plates heavy below the earth’s surface, we have been experiencing powerful forces leading to an earthquake in the true estate world. As with so much in life, what we see on the surface is merely a symptom of a deeper and much more significant movement that is actually the driving force. It really is this driving force that lots of brokers and agents have not recognized.
This is actually the first tectonic force that’s at the root of most these changes effecting the real estate industry: a big change in consumer behavior. Granted, it is a huge change in consumer habit. It’s so big with therefore many implications, most people don’t comprehend it.
The full description of the changes in consumer behavior would be quite long, but this is a brief summary in the context of the true estate business. Consumers are no more willing to be sold with obnoxious advertising and told what to buy and when to get 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 qualified conflicts of interest. They’re sick and tired of only getting partial information where to base their most important decisions. Buyers want and demand freedom to control their own destiny. They don’t really like being controlled. They don’t like being manipulated.
The second tectonic force effecting such dramatic changes in the real estate industry is strong in its own right, but additionally works 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 traditional real estate brokerage is… advances in systems.
The traditional brokerage business model has been totally unequipped to manage these tectonic shifts. The influence of the true estate recession has accelerated this process 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 function as identical. 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 tried out to sell me expensive print advertising just lately. I consult him, “Why would I advertise in the newspaper when it hasn’t sold some of my real estate listings previously year or so? Help me out. Why should I advertise in your paper?” His reply while soft-spoken and polite, was basically of exactly the same mindset as many real estate brokers today, “Well, you don’t desire to be left out when your competition is advertising, can you?” In response to my blank stare, he pleaded, “When business is slow, it’s not the time to stop advertising. It’s the time and energy to advertise as part of your!” That’s when I could no longer incorporate myself, and I broke out laughing. We used that range in sales 30 years ago. Are they nonetheless 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 cup windows in a futile work to escape 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 nowadays. If the ship you’re on is sinking, be quick about your business and join another ship just like the last one. Such behavior can be insanity and a ticket to inability.
More real estate agents have filed for bankruptcy safeguard previously two years than at any time in U.S. Background. And the earthquake has not ended as many bricks-and-mortar agents happen to be on the verge of closing their doors soon.
It is the early adopters of home based business models and new technologies who will be the millionaire real estate agents in the a long time. Because time can be truncated with the accelerating pace of the growth of technologies and the use of the Internet, those who pause too long to take into account doing something will undoubtedly be left so far behind, they may never catch up. Think about a space ship entering warp speed. Those that missed the flight will find themselves light a long time 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 methods, new tools to attain clients, and mastering the Internet as a powerful medium.