Don’t Believe It’s A Going Out Of Business Sale…Then Somebody’s Lying To You!
January 10, 2008
Okay, so yesterday, we post a story stating that the NAR basically announced a veritable going out of business sale and we get thousands of people to our blog, writing tons of emails and being so stunned they had to enlist the help of the National Association of Realtors legal counsel.
I’m sorry, we didn’t start the fire. Don’t shoot the messenger. We just reported what we read. So after a day of fielding calls from startled real estate agents, here we go again. If you don’t think the real estate business model as we now know it is about to become extinct, you simply have your head in the sand.
Late today we read a story on Yahoo News written that was the equivalent of Quasimodo sounding the bell. And for whom the bell tolls is your local real estate agent. I can only wonder what kind of call I will get from the NAR attorneys today.
Thousands of real estate agents across the US wandering with mixed emotions and uncertain prospects through the debris of a real estate gold rush.
As many train for new careers, return to old ones, or wait tables until prices rebound, the plight of the real estate agent - average age, 51 - reveals the human dimension of how loose lending, raw opportunity, and self-determination produced a housing bust that has stunned the US economy.
It seems as when the going gets tough, the not so tough have to be going now. The ride and lure of easy money in a rapidly appreciating market has come to an end. Accordingly, real estate agents, rather than LEARN the business and how to adapt, are leaving the business in droves.
Here are some pretty eye-opening numbers:
- In Atlanta, GA, the number of agents letting their licenses lapse is growing at a faster pace than the number of overall licenses held
- The Oregon Association of Realtors reports an 11.5 percent decline statewide of licensed agents in the past year.
- In Gilbert, Ariz., the fastest-growing city in the fastest-growing state, RE/MAX 2000 closed 13 offices throughout the Valley of the Sun, laying off at least 20 employees and scores of contract agents right before Christmas. The company couldn’t meet its expenses.
- In Cape Coral, Fla., 30 percent of the agents sold one home or less
- The story goes on to state that in some ways the declining housing market forced real estate agents, especially new agents, to face the cold reality of their own inadequacies as the inexperienced agent and experienced agent alike could not handle the drop in commissions, the upfront costs of being in business, marketing expenses, and association fees.
Where were the Brokers? Where was the help and training? Expecting an agent to thrive without the skills to succeed in today’s Web 2.0 world was very irresponsible and short-sighted.You could even call it lazy.
So now what? More calls from NAR attorneys? More emails from agents who really don’t have a clue. Maybe this Darwinistic cleansing is good for the business. Perhaps a declining market and agents levaing the business in droves is just what is needed.
I am all for working with the informed, educated, technologically savvy real estate agent. I think together there is a lot of profit to be made working with such an agent. Where are you? Where are you? Speak up. Be heard, there are a lot of us Buyers who are looking to forge relationships with you.
All you have to do is let your presence be known. But before you do, make sure you are prepared to meet the demands of an agent working in a Web 2.0 world. Otherwise, please indeed, as we said yesterday, turn the lights off on your way out.
You as an agent who wants to be successful have no excuse for not getting yourself prepared, educated and trained to enjoy success. Heck with 50% less competition you have a chance to basically double your income.
What’s it going to be?
What’s your definition of being a “prepared, educated and trained” Realtor? I have read your critiques about Realtor stereotypes like not returning phone calls or making a few, not spending marketing dollars and cashing commission checks. So if you think most Realtors are virtually useless then what, in your opinion, is the right amount of work for a Realtor to do to earn their money in a given transaction? I honestly would like to know.
I, like you, am very critical of my fellow Realtors and their work ethic. I like to think of myself as the 10% out of the 100% doing most of the business. Many Realtors don’t have what it takes to succeed in this business which is why they are quitting when the going gets rough. It’s also why more than 75% quit within the first 2 years in the business. Fine with me and I agree with many of your points. But some of your most valid points are not being heard through the bitterness.
Dear Barry,
You are very articulate on what is wrong with the Real estate Industry–I applaud you.
Now, please use this same articulation to bullet point 7 ways we can reach this new paradigm you describe–without the acrimony.
Your average age 51 yr old agent waiting for some guidance to help myself in this new market.
thanks, Bob
Even during the boom in some markets, I had always heard that 80% of first year agents did not renew their license for a second year. Maybe that’s because they found out it was actually work.
So many people get into this business thinking that buyers and sellers just magically fall from the sky. They sit in their office (if they even have one) waiting for phone to just ring out of thin air.
Living in market that is doing very well, I can’t be happier with where my business is going. I love how the average age in this business is 51, because by the time I get there, I will have been in this business for over half my life.
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