Real estate offices are closing all over the countryside. Real estate agents are hanging up their licenses in every say. The traditional bricks-and-mortar real estate brokerage is 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 another sinking ship, a ship that looks just just as the last one and often with the exact same name on the ribbon.
A large franchise office closes it’s doors, no longer able to keep the lights on after more than the year of operating in debt. The agents are worried sick, not so sure what they will do, until their savior walks in the door. Jupiter real estate
A broker from substantial bricks-and-mortar across town with the same franchise offers to take all the agents alongside the exact same contract terms: each agent pays $600 per month and keeps 100% of their commissions. The agents sigh in relief and quickly sign the new contracts like sheep to the slaughter.
Since the broker can’t generate enough leads for the agents, and growing agents aren’t selling enough to do the broker enough money on commission splits, nearly every split wouldn’t seem for the broker today. A sharp broker will charge each agent a monthly fee. He laughs all the way to the bank, owing to 60 agents paying $600 per month, he’s making $36,000 a month exclusively for living.
Three years ago I sat across the desk from a franchise broker who looked at me and said, “Well, we’re feeding small business every month. You need to do that when times are tough. But we’ve been through tough times before, and we always come out great.” I remember thinking to myself that was a silly thing point out coming from you who told me he had no company plan, no cover marketing, and no written vision for future years of his business. Unfortunately, that same broker just issued an announcement that he is permanently closing the doors of his bricks-and-mortar and is actually going to 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 associated with leaks, and it may take a while for those on the Titanic to wake up. Bricks-and-mortar real estate brokerages that stubbornly typically bridge the gap to an entirely new business model will die a sluggish and painful decline. It’s one thing for brokers to ride their own ship down, but it’s very another thing altogether for those brokers to sell tickets to real estate agents with promises cannot keep.
The most unfortunate thing about all of this is that the agents who think they are doing what it takes to survive are basically re-arranging the deck chairs on the Titanic. Many of which truly do not know or comprehend how precarious their fate is. The majority of do have a less than comfortable feeling, and they are fully aware something is wrong with their structure. Just like so many of the passengers on the Titanic near the end who smiled and kept saying, “Don’t worry, everything always works out alright,” traditional agents continue to greet people along with a smile and wait for a phone to wedding ring. But the ship is tilting, and these kinds of at risk. They don’t really know what to perform.
This is excellent dilemma of being stuck. It could be the classic inability regarding outside of ourselves. Traditional brokers and agents who have operated within a traditional brokerage model for quite some time struggle to think in entirely new ways. What makes this especially difficult for so many is their discomfort with technology and the Internet. Some simply refuse to learn the features. I know of a top producer who refuses to adapt, and he sincerely believes he can delegate many of the responsibilities to his assistant. Few assistants are going expend night and day learning and adapting for a boss, and if they do and leave someday, where does that leave the professional? Even successfully delegating leaves serious challenges in bridging the gap, which I will share later.
There’s been an extensive change, but just about all agents and brokers recognize what is going on. Most do not comprehend that built in the middle of a major earthquake. Therefore, they continue to do what they always have done. Underlying each one of these changes is something very big that traditional brokers are missing. Just as it is powerful forces that move tectonic plates deep below the global surface, we have powerful forces causing an earthquake inside of the real estate place. As with so much in life, that which we see on the surface is merely a manifestation of a deeper and much higher movement that is actually the driving force. It is this driving force that many brokers and agents have not revealed.
Here is extremely tectonic force at this point at the reason behind all these changes effecting the property industry: a enhancements made on consumer behavior. Granted, it’s a huge change in consumer behavior. It’s just too large with so many implications, most particularly when comprehend it.
The full description of these adjustments to consumer behavior most likely quite long, but here is a quick summary in the context of real estate business. Consumers are no longer willing to be sold with obnoxious advertising and told what to buy and when to buy it. Consumers are sick and sick and interruption advertising, of billboards, of ruthless salesmen, of telemarketing, and of misrepresentations and boldfaced lies. Consumers have had it with professional 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 future. They don’t like being controlled. They detest being manipulated.
The second tectonic force effecting such dramatic changes in the real estate sector is powerful in distinctive right, but also acts as a catalyst for oftentimes in consumer behavior.
The catalyst which empowered consumers and this is forcing these changes that are the death knell of traditional real estate brokerage is. advances in technology.
The traditional brokerage business model may be totally unequipped to get on with these tectonic alters. The impact of the real estate recession has accelerated this process being sure, but only in time. Been with them not been in this recession, the impact of these variations in consumer behavior might have taken longer, but the impact would ultimately be the exact. The recession has acted like a diversion, however, distracting real estate agents from the real cause of their disaster.
I’m reminded of the newspaper salesman who tried to sell me expensive print advertising recently. I ask him, “Why would I advertise in the newspaper when it hasn’t sold any of my real estate listings in you will discover year? Help me out. Why do i need to advertise in your paper?” His response while soft-spoken and polite, was of the mindset as many real estate brokers today, “Well, talk to your to be disregarded when your levels of competition are advertising, do your family?” In response to my blank stare, he pleaded, “When business is slow, it’s not 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 joking. We used that line in sales 30 years within the. Are they still using that step? Yes, they are.
Apparently, that kind of sales page still works jointly with many real estate agents and brokers, because like flies bouncing off home plate glass windows in a futile effort to avoid from bondage, many agents are still doing how they admit fails very well anymore. Whatever we used to do that isn’t working before must be done twice as rapidly now. In the event the ship you are is sinking, be quick about your business and hop on another ship just as good as the last one. Such behavior is insanity including ticket to failure.
More real estate brokers have declared bankruptcy protection in the past two years than at any time in Ough.S. History. And the earthquake doesn’t have ended as many bricks-and-mortar brokers are near closing their doors in the future.
It will be the early adopters of clients models and new technologies who should be the millionaire real estate agents in many years to you should come. Because time is truncated but now accelerating pace of aims of technology and the use of the Internet, those who pause too long to think about doing something will end up so far behind, informative never catch up. Think of a space ship visiting warp speed up. Those who missed the flight will wind up light years behind their colleagues. This is the way it is actually going to for traditional real estate agents who put in force staying underneath.
There can be an answer, yet it means embracing technology, new marketing methods, new tools to reach clients, and mastering the world wide web as a very good medium.