State of the Industry: 2017
The current state of the real estate industry is in turmoil. As much as 87% of newly licensed agents leave the industry within three years. They “fail” out. One out of five agents earns a living while the other four struggle and fail. This is nothing new and has become our “normal”. But make no mistake; it is NOT OK.
Although getting involved in real estate is relatively easy and inexpensive, many individuals under-estimate the efforts and talents required to succeed. The recipe for success requires, but is not limited to the following skills and/or qualities.
Technical (contract) knowledge
To complicate matters more, agents need to select a Brokerage from a mind-numbing selection of offerings that differ in size, philosophy, specialty, price, commission structure, location, training, support, and the list goes on. It’s no wonder why licensees have difficulty in establishing themselves in this environment.
The public ultimately suffers. Real estate agents are ranked near used car sales people in public surveys regarding professionals. The Realtor Association (the largest professional association in the world) has been addressing this issue for some time.
THE SOLUTION LIES IN SUSTAINED AND EFFECTIVE TRAINING - But there are massive challenges ahead.
Here are four of them:
Most successful agents specialize and work a “niche” market. This means that their training must be “tweaked”, to maximize the effectiveness in that specific niche market, or situation. This creates an infinite possibility of training methods and/or training material.
Most agents think they have a “job” when in fact they have a “business”. They are blind to this mindset, and it limits their ability to see opportunities as well as shortcomings in their business plan and overall methodology.
Most agents rely too heavily on the systems provided to them from their Broker and fail to look outside this framework. This limits their ability to creatively maximize their natural talents, as well as compensate for their weaknesses.
The paradox of choice and analysis paralysis. Have you ever walked through a real estate expo? Did it occur to you that every vendor wants you to hire them? What if you did? Is it possible to get so bogged down with “systems” that we forget this is a relationship business? In an industry where there the choices are so vast, how do we properly engage, so that we are efficient, effective and profitable?
I will be touching on these subjects in depth. Stay tuned so we can discuss each of them. Can you think of other massive challenges?