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 retains this archaic business design alive is consolidations. As offices in close proximity, some agents quit, however the survivors move their licenses to another sinking ship, a ship that seems just like the last one and frequently with the exact same name on the bow.
A big franchise office closes it’s doorways, no longer able to keep carefully the lights on after greater than a year of operating in debt. The agents are worried sick, not knowing what they will perform, until their savior walks in the door.
A broker from a large bricks-and-mortar across town with the same franchise offers to take all the agents in with the same contract terms: each real estate agent pays $600 monthly and keeps 100% of their commissions. The agents sigh in relief and swiftly sign the new agreements 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 help make the broker enough cash on commission splits, any sort of split wouldn’t make sense for the broker today. bungalows for sale in ainsdale A sharp agent will charge each agent a monthly payment. He laughs completely to the bank, because with 60 agents paying $600 monthly, he’s making $36,000 per month just for living.
3 years ago I sat across the desk from a franchise broker who looked at me and explained, “Well, we’re feeding the business every month. You need to do that when times are tough. But we have been through tough times before, and we always come out okay.” I recall thinking to myself that was 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 he is permanently closing the doorways of his bricks-and-mortar and will be hanging his permit with another bricks-and-mortar. Another consolidation.
This broker is only jumping from one sinking ship to one 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 refuse to bridge the gap to a completely new 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 fairly another thing altogether for those brokers to sell tickets to real estate agents with promises they can’t 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 just re-arranging the deck chair on the Titanic. Many of them truly have no idea or comprehend how precarious their fate is usually. Many of them do have an uncomfortable feeling, plus they know something is wrong with their business model. Exactly like so many of the passengers on the Titanic near the finish who smiled and kept saying, “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 dilemma of being stuck. It is the classic inability to think outside of oneself. Traditional brokers and agents who have operated within 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 won’t learn the technologies. I understand of a high producer who refuses to adapt, and he sincerely believes he can delegate most of the responsibilities to his assistant. Very few assistants are going to spend night and day understanding and adapting for a boss, and if they do and leave someday, where does that leave the agent? Even successfully delegating leaves considerable challenges 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 usually do not comprehend that they are in the center of a significant earthquake. Therefore, they continue steadily to do what they always have done. Underlying each one of these changes is something very big that traditional agents are missing. Just as it is powerful forces that step tectonic plates deeply below the earth’s surface, we are experiencing powerful forces causing an earthquake in the true estate world. As with so much in living, what we see on the surface is merely a symptom of a deeper plus much more significant movement that is actually the driving force. It really is this driving force that many brokers and agents haven’t recognized.
This is actually the first tectonic force that is at the root of most these changes effecting the true estate industry: a big change in consumer behavior. Granted, it is a huge change in consumer behaviour. It’s so big with so many implications, a lot of people don’t comprehend it.
The full description of the changes in consumer behavior would be quite long, but this is a brief overview in the context of the true estate business. Consumers are no longer willing to be sold with obnoxious advertising and told what things 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. Consumers have had it with qualified conflicts of interest. They’re fed up with only getting partial information upon which to base their most important decisions. Consumers want and demand freedom to control their own destiny. They don’t like being controlled. They don’t really like being manipulated.
The next tectonic force effecting such dramatic changes in the real estate industry is strong in its own right, but also works as a catalyst for the changes in consumer behavior.
The catalyst which has empowered buyers and is forcing these alterations which are the death knell of classic property brokerage is… advances in engineering.
The traditional brokerage business model has been totally unequipped to manage these tectonic shifts. The impression of the true estate recession has accelerated this technique to be certain, but only in time. Had it not been because of this recession, the impact of the changes in consumer behavior would have taken longer, however the impact would ultimately be the identical. The recession has acted such as a diversion, however, distracting realtors from the real reason behind their doom.
I’m reminded of the newspaper salesman who tried to market me expensive print advertising just lately. I inquire him, “Why would I advertise in the newspaper when it hasn’t sold some of my real estate listings during the past calendar year? Help me out. Why should I advertise in your papers?” His reaction while soft-spoken and polite, had been 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, do you?” In response to my blank stare, he pleaded, “When business is slow, it isn’t 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 line in sales 30 years ago. Are they still using that line? Yes, they are.
Apparently, that kind of sales pitch still works with many real estate agents and agents, because like flies bouncing off the plate glass windows in a futile work to flee from bondage, many agents are still doing what they admit doesn’t work very well any more. Whatever we were doing that has been 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 similar to the last one. Such behavior is definitely insanity and a ticket to inability.
More real estate agents have filed for bankruptcy security in the past two years than anytime in U.S. Background. And the earthquake have not ended as many bricks-and-mortar agents are on the verge of closing their doorways soon.
It’s the early adopters of home based business models and new technologies who will be the millionaire realtors in the years to come. Because time is usually truncated with the accelerating rate of the growth of technology and the usage of the Internet, those who pause too long to think about doing something will undoubtedly be left so far behind, they could never catch up. Think of a space ship going into warp speed. Those who missed the flight will see themselves light years behind their colleagues. This is one way it’ll be for traditional real estate agents who insist on staying behind.
There is an answer, and it means embracing technology, new marketing techniques, new tools to reach clients, and mastering the web as a powerful medium.