Real estate workplaces 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 property brokerage is definitely hemorrhaging, and all that keeps this archaic business model alive is consolidations. As offices close, some agents quit, but the survivors move their licenses to some other sinking ship, a ship that appears similar to the last one and frequently with the same name on the bow.
A large franchise office closes it’s doorways, no longer able to keep the lights on after greater than a year of operating in the red. The agents come to mind sick, not knowing what they will do, 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 of the agents in with the same contract terms: each real estate agent pays $600 per month and keeps 100% of their commissions. The agents sigh in relief and quickly sign the new agreements like sheep to the slaughter.
Since the broker can’t generate enough network marketing leads for the agents, and because the agents aren’t selling enough to make the broker enough funds on commission splits, almost any split wouldn’t make sense for the broker right now. house for sale in blackburn bb1 A sharp broker will charge each agent a monthly charge. 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 over the desk from the franchise broker who viewed me and stated, “Well, we’re feeding the business every month. You need to do that whenever times are tough. But we have been through tough times before, and we always turn out okay.” I recall thinking to myself that was a silly thing to say from the man who told me he had no business plan, no cover marketing, no written vision for the future of his business. Sadly, 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 merely jumping from one sinking ship to 1 that hasn’t sunk yet. The new ship has a lot of leaks, and it might take a while for people on the Titanic to awaken. Bricks-and-mortar real estate 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 fairly 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 brokers who think they are doing what it takes to survive are just re-arranging the deck chair on the Titanic. Many of them truly do not know or comprehend how precarious their fate will be. Many of them do have an uncomfortable feeling, and they know something is wrong making use of their business model. Exactly like so lots of the passengers on the Titanic close to the conclusion who smiled and kept saying, “Don’t worry, everything always works out alright,” traditional agents continue to greet people who have a smile and wait for the phone to ring. But 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 beyond oneself. Traditional brokers and brokers who have operated inside a traditional brokerage model for several years struggle to think in entirely new techniques. What makes this especially problematic for so many is their irritation with technology and the Internet. Some simply refuse to learn the technologies. I understand of a top producer who refuses to adapt, and he sincerely believes he can delegate most of the responsibilities to his assistant. Few assistants are going to spend night and day learning and adapting for a boss, and if they do and abandon someday, where does that abandon the real estate agent? Even successfully delegating leaves significant difficulties in bridging the gap, which I will share later.
There’s been an enormous change, but not all agents and agents 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 will 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 heavy below the earth’s surface, we have been experiencing powerful forces resulting in an earthquake in the true estate world. Much like so much in lifestyle, what we see on the surface is merely an indicator of a deeper and much more significant trend 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 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 habit. It’s so big with therefore many implications, most people don’t comprehend it.
The full description of these changes in consumer behavior would be quite long, but this is a brief overview in the context of the real estate business. Consumers are no longer ready to be sold with obnoxious marketing and told what things to buy and when to get it. Consumers are sick and tired of interruption advertising, of billboards, of ruthless salesmen, of telemarketing, and of misrepresentations and boldfaced lies. Customers have had it with professional conflicts of interest. They’re sick and tired of only getting partial information where to base their most significant decisions. Consumers want and demand freedom to regulate their own destiny. They don’t 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 also acts as a catalyst for the improvements in consumer behavior.
The catalyst that has empowered buyers and is forcing these changes which are the death knell of standard real estate brokerage is… advances in technologies.
The traditional brokerage business design has been totally unequipped to manage these tectonic shifts. The affect of the real estate recession has accelerated this process to be certain, but only with time. Had it not been for this recession, the impact of these changes in consumer behavior could have taken longer, however the impact would ultimately function as similar. The recession has acted such as a diversion, however, distracting realtors from the real cause of their doom.
I’m reminded of the newspaper salesman who tried out to market me expensive print advertising recently. I consult him, “Why would I promote in the newspaper when it hasn’t sold any of my real estate listings previously 12 months? Help me out. Why should I advertise in your paper?” His reply while soft-spoken and polite, seemed to be of exactly the same mindset as many real estate agents today, “Well, you don’t want to be left out when your competition is advertising, can 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 and energy to advertise more than ever!” That’s when I could no longer comprise myself, and I broke out laughing. We used that series in sales 30 years ago. Are they nonetheless using that line? Yes, they are.
Apparently, that kind of sales page still works with many realtors and brokers, because like flies bouncing off the plate glass windows in a futile effort to escape from bondage, many agents remain doing what they admit doesn’t work very well any longer. Whatever we were doing that was not working before must be done twice as fast today. If the ship you’re on is sinking, stop wasting time about your business and jump on another ship similar to the last one. Such behavior can be insanity and a ticket to failure.
More real estate agents have filed for bankruptcy safety before two years than at any time in U.S. History. And the earthquake have not ended as many bricks-and-mortar agents happen to be on the verge of closing their doors soon.
It’s the early adopters of home based business models and new technologies who’ll be the millionaire realtors in the a long time. Because time is certainly truncated with the accelerating tempo of the growth of technology and the use of the Internet, those that 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 entering warp speed. Those that missed the flight will find themselves light decades behind their colleagues. This is one way it will be for traditional real estate agents 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.