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 can be hemorrhaging, and all that continues this archaic business design alive is consolidations. As offices in close proximity, some agents quit, however the survivors move their licenses to some other sinking ship, a ship that looks just like the last one and often with the same name on the bow.
A big franchise office closes it’s doorways, no longer able to keep the lights on after more than a year of operating in the red. The agents are worried sick, not knowing what they will perform, until their savior walks in the entranceway.
A broker from a large bricks-and-mortar anywhere with the same franchise offers to take all of the agents in with the exact same contract terms: each real estate agent pays $600 per month and keeps 100% of their commissions. The brokers sigh in relief and swiftly sign the new contracts 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 help make the broker enough money on commission splits, any type of split wouldn’t make sense for the broker right now. manchester road accrington A sharp broker will charge each realtor a monthly payment. He laughs all the way to the lender, because with 60 agents paying $600 monthly, he’s making $36,000 a month just for living.
Three years ago I sat across the desk from a franchise broker who looked at me and stated, “Well, we’re feeding the business every month. You have to do that whenever times are tough. But we have been through a down economy before, and we always come out okay.” I remember thinking to myself that has been a silly thing to state from the man who told me he had no business plan, no budget for marketing, no written vision for the future of his business. However, that same broker just issued a press release that he is permanently closing the doorways of his bricks-and-mortar and you will be hanging his permit with another bricks-and-mortar. Another consolidation.
This broker is only jumping in one sinking ship to 1 that hasn’t sunk yet. The brand new ship has plenty of leaks, and it might take a while for folks on the Titanic to awaken. Bricks-and-mortar property brokerages that stubbornly won’t bridge the gap to a completely new business model will die a gradual and painful death. It’s one thing for brokers to ride their very own ship down, but it is quite another thing altogether for all those brokers to sell tickets to realtors with promises they can not keep.
The most unfortunate thing about all of this is that the agents who think they’re doing what must be done to survive are only re-arranging the deck seats 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 making use of their business model. Just like so many of the passengers on the Titanic near the end who smiled and kept declaring, “Don’t worry, everything always works out alright,” traditional agents continue to greet people with a smile and wait for the phone to ring. However the ship is tilting, plus they are at risk. They just have no idea what to do.
This is the great issue of being stuck. It is the classic inability to think outside of oneself. Traditional brokers and agents who have operated inside a traditional brokerage model for several years struggle to think in entirely new ways. What makes this especially difficult for so many is their soreness with technology and the Internet. Some simply refuse to learn the technologies. I understand of a top producer who refuses to adjust, and he sincerely believes he is able to delegate many of the responsibilities to his assistant. Very few assistants are likely to spend night and day understanding and adapting for a boss, and if they do and abandon someday, where does that depart the broker? Even successfully delegating leaves serious difficulties in bridging the gap, which I will share later.
There’s been a huge change, however, not all agents and brokers recognize what’s happening. Most do not comprehend that they are in the middle of a major earthquake. Therefore, they continue to do what they will have done. Underlying all these changes is something very huge that traditional agents are missing. Just as it really is powerful forces that maneuver tectonic plates deeply below the earth’s surface, we have been experiencing powerful forces resulting in an earthquake in the real estate world. Much like so much in lifetime, what we see at first glance is merely an indicator of a deeper and much more significant movement that is actually the driving force. It really is this driving force that lots of brokers and agents have not recognized.
This is actually the first tectonic force that is at the root of all 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 thus many implications, a lot of people don’t comprehend it.
The full description of the changes in consumer behavior would be quite long, but here is a brief summary in the context of the real estate business. Consumers are no longer willing to be sold with obnoxious marketing and told what to buy and when to buy it. Consumers are sick and tired of interruption advertising, of billboards, of ruthless salesmen, of telemarketing, and of misrepresentations and boldfaced lies. Consumers have had it with expert conflicts of interest. They’re fed up with only getting partial information where to base their most significant decisions. Customers want and demand freedom to control their own destiny. They don’t like being controlled. They don’t really like being manipulated.
The second tectonic force effecting such dramatic changes in the real estate industry is strong in its own right, but additionally works as a catalyst for the changes in consumer behavior.
The catalyst which has empowered consumers and is forcing these adjustments that are the death knell of conventional real estate brokerage is… advances in technology.
The traditional brokerage business model has been totally unequipped to handle 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 would have taken longer, but the impact would ultimately function as identical. The recession has acted just like a diversion, however, distracting real estate agents from the real cause of their doom.
I’m reminded of the newspaper salesman who tried to market me expensive print advertising just lately. I consult him, “Why would I market in the newspaper when it hasn’t sold any of my real estate listings during the past yr? Help me out. Why should I advertise in your papers?” His reaction while soft-spoken and polite, seemed to be of the same mindset as many real estate agents today, “Well, you don’t wish to be left out whenever your competition is advertising, can you?” In reaction to my blank stare, he pleaded, “When business is slow, it isn’t the time to stop advertising. It’s the time to advertise as part of your!” That’s when I possibly could no longer include myself, and I broke out laughing. We used that range in sales 30 years back. Are they even now using that line? Yes, they are.
Apparently, that kind of sales page still works with many real estate agents and agents, because like flies bouncing off the plate cup windows in a futile work to flee from bondage, many agents remain doing what they admit doesn’t work very well any more. Whatever we were doing that was not working before should be done twice as fast right now. If the ship you’re on is sinking, be quick about your business and jump on another ship similar to the last one. Such behavior can be insanity and a ticket to failing.
More real estate agents have filed for bankruptcy safety previously two years than at any time 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 new business models and new technologies who will be the millionaire realtors in the a long time. Because time is certainly truncated with the accelerating tempo of the growth of engineering and the use of the Internet, those who pause too long to take into account doing something will undoubtedly be left so far behind, they may never catch up. Think of a space ship entering warp speed. Those who missed the flight will see themselves light years behind their colleagues. This is one way it will be for traditional real estate agents who insist on staying behind.
There is an answer, also it means embracing technology, new marketing techniques, new tools to attain clients, and mastering the Internet as a powerful medium.