Real estate office buildings are closing from coast to coast. Real estate agents will be hanging up their licenses atlanta divorce attorneys state. The traditional bricks-and-mortar real estate brokerage is usually hemorrhaging, and all that retains this archaic business design alive is consolidations. As offices close, some agents quit, however the survivors move their licenses to another sinking ship, a ship that looks similar to the last one and often with the very same name on the bow.
A big franchise office closes it’s doorways, no longer able to keep carefully the lights on after more than a year of operating in debt. The agents are worried sick, not knowing what they’ll perform, until their savior walks in the door.
A broker from the large bricks-and-mortar anywhere with the same franchise offers to take all of the agents in with the exact same contract terms: each realtor pays $600 monthly and keeps 100% of these commissions. The agents sigh in relief and quickly sign the new agreements like sheep to the slaughter.
Since the broker can’t generate enough potential clients for the agents, and because the agents aren’t selling enough to help make the broker enough funds on commission splits, any type of split wouldn’t seem sensible for the broker right now. houses for sale in blackburn lancs A sharp broker will charge each realtor a monthly cost. He laughs all the way to the bank, because with 60 brokers paying $600 monthly, he’s making $36,000 per month just for living.
Three years ago I sat across the desk from the franchise broker who looked at me and said, “Well, we’re feeding the business 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 was 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. Sadly, that same broker simply just issued a press release he is permanently closing the doors of his bricks-and-mortar and you will be hanging his license 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 plenty of leaks, and it may take a while for individuals on the Titanic to wake up. Bricks-and-mortar property brokerages that stubbornly won’t bridge the gap to an entirely home based business model will die a gradual 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 all those brokers to market tickets to realtors with promises they can’t keep.
Probably the most unfortunate thing about all of this is that the brokers who think they are 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 is certainly. Many of them do have a distressing feeling, plus they know something is wrong with their business model. Exactly like so lots of the passengers on the Titanic close to the stop who smiled and kept declaring, “Don’t worry, everything always works out alright,” traditional agents continue to greet people who have a smile and await the phone to ring. But the ship is tilting, and 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 outside of oneself. Traditional brokers and agents who have operated within a traditional brokerage model for many years battle to think in entirely new methods. What makes this especially problematic for so many is their distress with technology and the web. Some simply refuse to learn the technologies. I know of a top producer who refuses to adapt, and he sincerely believes he can delegate a lot of the responsibilities to his assistant. Several assistants are going to spend night and day studying and adapting for a boss, and when they do and keep someday, where does that depart the broker? Even successfully delegating leaves critical difficulties in bridging the gap, which I will share later.
There’s been a huge change, but not all agents and agents recognize what’s happening. Most do not comprehend that they are in the middle of a significant earthquake. Therefore, they continue steadily to do what they will have done. Underlying each one of these changes is something very large that traditional agents are missing. Just as it is powerful forces that shift tectonic plates heavy below the earth’s surface, we have been experiencing powerful forces leading to an earthquake in the true estate world. Much like so much in lifetime, what we see at first glance is merely a symptom of a deeper plus much more significant trend that is actually the driving force. It is this driving force that lots of brokers and agents have not recognized.
Here is the first tectonic force that is 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 will be quite long, but this is a brief overview 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 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 experienced conflicts of interest. They’re sick and tired of only getting partial information where to base their most important decisions. Customers want and demand freedom to regulate their own destiny. They don’t really like being controlled. They don’t really like being manipulated.
The second tectonic force effecting such dramatic changes in the true estate industry is strong in its own right, but additionally acts as a catalyst for the alterations in consumer behavior.
The catalyst which has empowered consumers and is forcing these alterations that are the death knell of conventional property brokerage is… advances in technologies.
The traditional brokerage business design has been totally unequipped to cope with these tectonic shifts. The influence of the true estate recession has accelerated this process to be sure, but only in time. Had it not been because of this recession, the impact of the changes in consumer behavior would have taken longer, but the impact would ultimately be the same. The recession has acted like a diversion, however, distracting realtors from the real cause of their doom.
I’m reminded of the newspaper salesman who tried out to sell me expensive print advertising lately. I talk to him, “Why would I advertise in the newspaper when it hasn’t sold any of my real estate listings in past times calendar year? Help me out. Why must i advertise in your paper?” His reaction while soft-spoken and polite, was basically of the same mindset as many real estate agents today, “Well, you don’t want to be left out whenever your competition is advertising, can you?” In response to my blank stare, he pleaded, “When business is slow, it isn’t the time to avoid advertising. It’s the time to advertise more than ever!” 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 nevertheless using that line? Yes, they’re.
Apparently, that kind of sales page still works with many realtors 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 longer. Whatever we were doing that has been not working before should be done twice as fast now. If the ship you’re on is sinking, stop wasting time about your business and join another ship similar to the last one. Such behavior will be insanity and a ticket to disappointment.
More real estate brokers have filed for bankruptcy safeguard in past times two years than anytime in U.S. Record. And the earthquake has not ended as many bricks-and-mortar brokers are usually 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 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 about a space ship going into warp speed. Those who missed the flight will see themselves light a long time behind their colleagues. This is one way it’ll be for traditional realtors who insist upon 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.