Real estate offices are closing all over the countryside. Real estate agents are hanging up their licenses in every local. 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 as good as the last one and often with the exact same name on the ribbon and bow.
A large franchise office closes it’s doors, unable to keep the lights on after more than the year of operating in the red. The agents are worried sick, not being totally sure what they will do, until their savior walks in the door. Jupiter Florida real estate
A broker from substantial bricks-and-mortar across town with the same franchise offers to take all the agents accompanying 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 the agents aren’t selling enough to make the same broker enough money on commission splits, every split wouldn’t make sense for the broker today. A sharp broker will charge each agent a monthly fee. He laughs all tips to the bank, owing to 60 agents paying $600 per month, he’s making $36,000 a month just living.
Three years ago I sat around the desk from a franchise broker who looked at me and said, “Well, we’re feeding small business every month. You must do that when times are tough. But we’ve been through tough times before, and we always come out now.” I remember thinking to myself that any silly thing clearly coming from men who told me he had no enterprise plan, no budget for marketing, and no written vision money of his commerce. Unfortunately, that same broker just issued an announcement that he is permanently closing the doors of his bricks-and-mortar and possibly be hanging his license with another bricks-and-mortar. Another consolidation.
This broker in fact is jumping from one sinking ship to a single that hasn’t sunk yet. The new ship has plenty of leaks, and it a while for individuals 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 painstaking and painful decline. It’s one thing for brokers to ride their own ship down, but it is very another thing altogether for those brokers to sell tickets to real estate agents with promises cannot keep.
The most unfortunate thing about all this is that the agents who think they are doing what it takes to survive are only re-arranging the deck chairs on the Titanic. Many of which truly do not know or comprehend how precarious their fate is. Many of them do have an uncomfortable feeling, and discover something is wrong with their business structure. Just like so many of the passengers on the Titanic near the conclusion 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 the phone to ring. But the ship is tilting, and they at risk. They cannot know what to do.
This is product sales . dilemma of being stuck. It will be the classic inability believe outside of oneself. Traditional brokers and agents who have operated within a traditional brokerage model for many years struggle to think in entirely new ways. What makes this especially difficult for so many is their discomfort with technology and the Extensive. Some simply refuse to learn the technological innovation. I know of a top producer who refuses to adapt, and he sincerely believes he can delegate many in the responsibilities to his assistant. Few assistants are going expend night and day learning and adapting for a boss, and if they and leave someday, where does that leave the instrument? Even successfully delegating leaves serious challenges in bridging the gap, which I will share later.
There’s been change, but just about all agents and brokers recognize what is occurring. Most do not comprehend that built in the middle of a major earthquake. Therefore, they continue to do what they usually done. Underlying every 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 earth’s surface, we get each year powerful forces causing an earthquake each morning real estate field. As with so much in life, what you see on leading is merely a warning sign of a deeper and much higher movement that has become the driving get. It is this driving force that many brokers and agents have not comprehended.
Here is the first tectonic force that is at the cause of all these changes effecting the real estate industry: a enhancements made on consumer behavior. Granted, it’s a huge change in consumer behavior. It’s so large with so many implications, most suppliers comprehend it.
The full description of these modifications to consumer behavior that i see quite long, but here is a short summary in the context of the real estate business. Consumers should willing to be sold with obnoxious advertising and told what to buy and when to buy it. Consumers are sick and as well as interruption advertising, of billboards, of questionable salesmen, of telemarketing, and of misrepresentations and boldfaced is put. 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 procedures. 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 regarding real estate sector is powerful in its own right, but also acts as a catalyst for oftentimes in consumer unruly behavior.
The catalyst offers empowered consumers it is actually forcing these changes that are the death knell of traditional real estate brokerage is. advances in technology.
The traditional brokerage business model is totally unequipped to deal 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 to do this recession, the impact of these alterations in consumer behavior would 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 source of their bad.
I’m reminded in 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 seen an explosion year? Help me out. Why breath analyzer advertise in your paper?” His response while soft-spoken and polite, was the exact same mindset as many real estate brokers today, “Well, to avoid to be left out when your levels of competition are advertising, do the customer?” In response to my blank stare, he pleaded, “When business is slow, it’s not period to stop providing. It’s the time to advertise inside the kitchen .!” That’s when I could no longer contain myself, and I broke out joking. We used that line in sales 30 years inside. Are they still using that distinction? Yes, they are.
Apparently, that sort of advertisement still jointly many providers and brokers, because like flies bouncing off the dish glass windows in a futile effort to avoid from bondage, many agents are still doing what gachi admit fails very well anymore. Whatever we were doing that hadn’t been working before must be accomplished twice as speedily now. If for example the ship you’re on is sinking, be quick about your business and jump on another ship just as good as the last it. Such behavior is insanity coupled with a ticket to failure.
More real estate agents have filed for bankruptcy protection in seen an explosion two years than you would like in Oughout.S. History. And the earthquake hasn’t ended as many bricks-and-mortar brokers are on the verge of closing their doors now.
It may be the early adopters of new business models and new technologies who will be the millionaire real estate professionals in many years to near. Because time is truncated utilizing the accelerating pace of the expansion of technology and the utilization of the Internet, those who pause lengthy to give some thought to doing something will be left so far behind, they are never get up to date. Think of a space ship entering warp hustle. Those who missed the flight will feel light years behind their colleagues. This is how it always be for traditional real auctions who impose staying at the rear.
There is actually answer, and it means embracing technology, new marketing methods, new tools to reach clients, and mastering the internet as a very good medium.