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 is certainly hemorrhaging, and all that will keep this archaic business design alive is consolidations. As offices close up, some agents quit, but the survivors move their licenses to another sinking ship, a ship that seems just like the last one and often with the exact same name on the bow.
A large franchise office closes it’s doors, no longer able to keep the lights on after more than a year of operating in debt. The agents come to mind sick, not knowing what they will carry out, until their savior walks in the door.
A broker from the large bricks-and-mortar across town with exactly the same franchise offers to take all the agents in with the exact same contract terms: each real estate agent pays $600 per month and keeps 100% of their commissions. The agents sigh in relief and rapidly sign the new contracts like sheep to the slaughter.
Since the broker can’t generate enough prospects for the agents, and because the agents aren’t selling enough to help make the broker enough funds on commission splits, any sort of split wouldn’t make sense for the broker nowadays. houses for sale rishton A sharp broker will charge each broker a monthly cost. He laughs all the way to the bank, because with 60 brokers paying $600 monthly, he’s making $36,000 a month just for living.
3 years ago I sat across the desk from a franchise broker who viewed me and mentioned, “Well, we’re feeding the business every month. You need to do that when times are tough. But we’ve been through tough times 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 had no business plan, no budget for marketing, no written vision for the future of his business. Unfortunately, that same broker only issued a press release 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 in one sinking ship to 1 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 wake up. Bricks-and-mortar real estate brokerages that stubbornly refuse to bridge the gap to a completely home based business model will die a slow and painful death. It’s a very important factor for brokers to ride their own ship down, but it is fairly another thing altogether for those brokers to market 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 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. Most of them do have an uncomfortable feeling, and they know something is wrong with their business model. Exactly like so many of the passengers on the Titanic near the ending who smiled and kept expressing, “Don’t worry, everything always works out alright,” traditional agents continue steadily to greet people who have 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 is the classic inability to think outside of oneself. Traditional brokers and brokers who have operated inside a traditional brokerage model for many years battle to think in entirely new techniques. What makes this especially problematic for so many is their soreness with technology and the web. Some simply won’t learn the technologies. I understand of a top producer who refuses to adjust, and he sincerely believes he can delegate most 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 depart someday, where does that depart the realtor? Even successfully delegating leaves severe 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 center of a significant earthquake. Therefore, they continue to do what they will have done. Underlying all these changes is something very huge that traditional brokers are missing. Just as it is powerful forces that shift tectonic plates deep below the earth’s surface, we have been experiencing powerful forces triggering an earthquake in the true estate world. As with so much in lifestyle, 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 is this driving force that lots of brokers and agents haven’t 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 habits. It’s so big with thus many implications, most people don’t comprehend it.
The full description of the changes in consumer behavior will be quite long, but here is a brief overview in the context of the real estate business. Consumers are no longer ready to be sold with obnoxious advertising and told what things to buy and when to get it. Consumers are sick and tired of interruption marketing, of billboards, of ruthless salesmen, of telemarketing, and of misrepresentations and boldfaced lies. Buyers have had it with expert conflicts of interest. They’re fed up with only getting partial information where to base their most significant decisions. Consumers 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 true estate industry is strong in its own right, but additionally functions as a catalyst for the modifications in consumer behavior.
The catalyst which has empowered buyers and is forcing these improvements that are the death knell of conventional real estate brokerage is… advances in systems.
The traditional brokerage business model has been totally unequipped to handle these tectonic shifts. The impact 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 could have taken longer, but the impact would ultimately function as same. The recession has acted such as a diversion, however, distracting real estate agents from the real reason behind their doom.
I’m reminded of the newspaper salesman who attempted to sell me expensive print advertising recently. I request him, “Why would I promote in the newspaper when it hasn’t sold some of my real estate listings in the past 12 months? Help me out. Why must i advertise in your papers?” His reply while soft-spoken and polite, had been of the same mindset as many real estate agents today, “Well, you don’t want to be left out when your competition is advertising, do you?” In reaction to my blank stare, he pleaded, “When business is slow, it’s not the time to stop advertising. It’s the time to advertise more than ever!” That’s when I could no longer contain myself, and I broke out laughing. We used that series in sales 30 years back. Are they nevertheless using that line? Yes, they’re.
Apparently, that kind of sales page still works with many real estate agents and agents, because like flies bouncing off the plate glass windows in a futile effort to escape from bondage, many agents are still doing what they admit fails very well any longer. Whatever we were doing that was not working before should be done twice as fast today. If the ship you are on is sinking, be quick about your business and join another ship just like the last one. Such behavior is insanity and a ticket to disappointment.
More real estate agents have filed for bankruptcy safety in past times two years than at any time in U.S. Record. And the earthquake have not ended as many bricks-and-mortar agents are on the verge of closing their doorways soon.
It is the early adopters of home based business models and new technologies who will be the millionaire real estate agents in the years to come. Because time will be truncated with the accelerating tempo of the growth of engineering 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 how it’ll be for traditional realtors who insist on staying behind.
There is an answer, and it means embracing technology, new marketing methods, new tools to attain clients, and mastering the Internet as a powerful medium.