Real estate offices are closing all over the united kingdom. Real estate agents are hanging up their licenses in every level. 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 distinct sinking ship, a ship that looks just like the last one and often with the exact same name on the ribbon and bow.
A large franchise office closes it’s doors, no longer able to keep the lights on after more compared year of operating at a negative balance. 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 a sizable bricks-and-mortar across town with a similar franchise offers to take all the agents in with 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 keeps growing agents aren’t selling enough to make the same broker enough funds on commission splits, any kind of split wouldn’t seems sensible 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 when living.
Three years ago I sat along side desk from a franchise broker who looked at me and said, “Well, we’re feeding the business every month. You must 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 would be a silly thing point out coming from a man who told me he had no business plan, no budget for marketing, and no written vision for the future of his work. 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 a minimum of one that hasn’t sunk yet. The new ship has lots of leaks, and it a while for folks on the Titanic to wake awake. Bricks-and-mortar real estate brokerages that stubbornly refuse to bridge the gap to an entirely new business model will die a sluggish and painful the loss. It’s one thing for brokers to ride their own ship down, but it is quite another thing altogether for those brokers to sell tickets to real auctions with promises they can’t keep.
The most unfortunate thing about more or less everything is that the agents who think they are doing what it takes to survive are just re-arranging the deck chairs on the Titanic. Many of parents truly do not know or comprehend how precarious their fate is. That just don’t have do have a distressing feeling, and they are fully aware something is wrong with their feature. Just like so many of the passengers on the Titanic near the finish who smiled and kept saying, “Don’t worry, everything always works out alright,” traditional agents still greet people having a smile and wait for a phone to bands. But the ship is tilting, and these are at risk. They just do not know what to try to to.
This is excellent dilemma of being stuck. It is the classic inability regarding outside of ourselves. 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 a hardship on so many is the discomfort with technology and the On the net. 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 service? Even successfully delegating leaves serious challenges in bridging the gap, which I will share later.
There’s been an extensive change, but not all agents and brokers recognize what is going on. Most do not comprehend that these 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 like it is powerful forces that move tectonic plates deep below the global surface, we have powerful forces causing an earthquake each morning real estate economy. As with so much in life, whatever we see on the surface is merely a proof of a deeper and much more significant movement that has become the driving get. It is this driving force that many brokers and agents have not notable.
Here is initial tectonic force is actually why at the root of all these changes effecting the real estate industry: a alteration in consumer behavior. Granted, it’s a huge change in consumer behavior. It’s just too large with so many implications, most sufferers do not comprehend it.
The full description of these changes in consumer behavior that i see quite long, but here is a brief 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 as well as interruption advertising, of billboards, of questionable salesmen, of telemarketing, and of misrepresentations and boldfaced fabrications. 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 picks. Consumers want and demand freedom to control their own success. They don’t like being controlled. They don’t love being manipulated.
The second tectonic force effecting such dramatic changes previously real estate industry is powerful in individual right, but also acts as a catalyst for the changes in consumer activities.
The catalyst which includes 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 may be totally unequipped work with these tectonic alters. The impact of the real estate recession has accelerated this process to be sure, but only in time. Had it not been to do this recession, the impact of these variations in consumer behavior possess taken longer, but the impact would ultimately be the same. The recession has acted like a diversion, however, distracting real estate agents from the cause of their doom.
I’m reminded with 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 solutions year? Help me out. Why should i advertise in your paper?” His response while soft-spoken and polite, was of the same mindset as many real estate brokers today, “Well, to avoid to be disregarded when your competitors are advertising, do the customer?” In response to my blank stare, he pleaded, “When business is slow, it’s not the time to stop promoting and advertising. It’s the time to advertise more than ever!” That’s when I could no longer contain myself, and I broke out having a laugh. We used that line in sales 30 years back. Are they still using that line? Yes, they are.
Apparently, that kind of everlasting sales pitch still in concert with many agents and brokers, because like flies bouncing off home plate glass windows in an ineffective effort to flee from bondage, many agents are still doing what she admit does not work very well anymore. Whatever we were doing that is not working before must be exercised twice as quicly now. Should the ship you are well on is sinking, be quick about company and can get on another ship just like the last one. Such behavior is insanity and the ticket to failure.
More real estate brokers have declared bankruptcy protection in the past two years than you would like in Ough.S. History. And the earthquake but ended as much bricks-and-mortar brokers are on the verge of closing their doors very quickly.
It is the early adopters of start up business models and new technologies who should be the millionaire agents in many years to are offered. Because time is truncated utilizing the accelerating pace of the expansion of technology and the use of the Internet, those who pause too much to search doing something will remain so far behind, informative never catch up. Think of a space ship commencing warp speed. Those who missed the flight will find themselves light years behind their colleagues. This is the way it is actually going to for traditional real estate agents who insist on staying underneath.
There a answer, you’ll find means embracing technology, new marketing methods, new tools to reach clients, and mastering the internet as an intense medium.