"When the going gets tough... the tough get going!" I was at a company mixer the other evening in Atlanta, and was talking to some very successful agents that were in the Atlanta real estate market much longer than I have been! It was interesting to talk with locals that have seen good and bad times and reflect on the industry and the changes we all saw! It was more than reminisicng, we were taking stock of the current market and where it was going! Recently we had a whole bunch of real estate offices close! In the past it was entire companies that dissapeared! Nothing stays the same forever. Companies like Merrill Lynch, Buckhead Brokers, Northside Realty to name just a few were a major part of the Atlanta real estate landscape and have disappeared into obscurity! So too have many of the really big real estate agents, and their teams! These were real estate names that were almost household words! Through billboards, mailings, newspapers, and cold calling and classifieds everyone knew their names! You know the ones that dominated everything! At awards ceremonies they picked up every possible award, and left no trophy left to claim for the "Johnny come lately!" The question is now, where are they and what happened to them? Where are those superstars now?
High overhead, and top heavy marketing has claimed a lot of unsuspecting victims with big egos that did not see this downturn coming. They kept spending like a sailor on a spree at shoreleave! Some of the big names no one knows what happened to them, a few are no longer living, a few... have died of suicide! The scary thing is that some of these were indeed very successful looking at least on the outside! Now I think differently about them! Oh and the one that everyone forgot about was the one big agent we all competed with - who is in jail for 10 years for fraud! It is interesting to sometimes sit back and reflect and see that sometimes success is elusive, while for others that have a small operation, and watch their expenses are still doing OK. They are making good money, and paying the bills. The difference is that they left their egos at the door! Longevity, and success are planned destinations in the life of a successful real estate agent!
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Jim,
This post contains more than a mouthful of truth!!! Thanks, Fran
Maple Valley WA Broker/Owner Colleen Fischesser 425-432-5400 To me it is all about what your net. If you have 25 people working for you and you are making 25 million a year in sales, you have 25 $1 million dollar club members. Kind of pathetic. Agents that are personal friends of mine have shared with me their total over hear is over 65%. Not too smart. Why not be a 1 person or 2 person team and take home some real money without the BS?
Melina Tomson, M.S. Salem Oregon Real Estate Specialist I think our company has consolidated a few offices, and the number of agents are down. Many agents have hung their license with low overhead companies thinking this is a temporary slowdown. I think that moving to those offices...those agents have just left the business whether they know it or not!
Jim, thanks for your post. I see larger companies closing and small ones popping up daily. Likewise some small companies have shut their doors.
I spoke with an agent a few days ago who didn't want a million dollar listing because they didn't have enough money to market it. I think a lot of people are struggling. I also thing a lot of the "big" names are still trying to do business like they did 10-15 years ago. Great post!
Tina in Virginia
Jacqueline Dyson The small companies are just that! Small companies. They are a a 'ship passing in the night!' Many of them will also pass away! Many of them can least afford the overhead and comply with state license law!
Jim, I agree, a little humilty goes a long way.
Abacus(www.AbacusPropertiesInc.com) is doing quite well and frankly, growing! We are a virtual office company that can let our agents keep much more of their hard-earned commission.
It doesn't take long of being overhead heavy for things to start to get a little tight. There are a couple here that spend between 15-20% of their gross on just the newspaper alone.... and that's before paying a bevy of assistants. Not a smart business model if you ask me.
Jim,
I some what agree with what you had to say. I have been one of those agents you have talked about, with the trucks and the large teams. You have to watch the business like a hawk. I saw our numbers here in fall of 2005 starting to slow down (Northern Kentucky, across the River from Cincinnati) and starting downsized the spring of 2006. I still got hit some but had got my expenses down by 50% and got down to bare essientials and doing business the old fashion way "You EARN It"
Belly to Belly
Eye to Eye
What I have seen is that most agents don't watch the MLS everyday.
If you watch the MLS everyday, it is just like the stock broker watching the DOW Jones.
It will tell you after a short period of time what the market is going to do, yes there are other things that come into play, jobs, interest rates, etc..
But that MLS will talk to you and numbers don't lie.
I think that the change in market for us LIFERS in the R.E.Business is a good history system for us to remember for when the next time it comes around and it will.
Sharpen the AXE! Get the Education you have been thinking about!
Get your technology up to date!
Learn something about your computer everyday!
Learn something about your MLS you did not know!
Write 5 "Thank You" notes a day
Call 5 past clients a day
Call 5 Sphere of Infulence a day
By just being plain active, you will run into business.
Jim, Enjoy your article and keep up the good work, BTW What part of Atlanta do you sell in?
MRMIKE
Mike Parker - CRS
HUFF REALTY
Northern Kentucky
If sales are down 50% and not forecasted to recoup anytime soon, then it stands to reason at least 50% of the real estate agent machine will disappear as well! Yes, those slow to adapt go the way of the dinosaur!
Just like newspaper RE classifieds... the RE slowdown and CL iare killing the newspapers as well!
How many of "todays" builders will be around in 3 years! Kind of scary! Too many want to continue to "build their way out of this problem"!
Jim, You can have the last laugh by offering some of the former high profile superstars a position at your firm and telling them they will have to earn it to stay!
Frank Rubi Louisiana Real Estate-Homes for Sale It is interesting, and it will be more interesting as this market unfolds. There are normal dips and dry spells, this time it seems a lot deeper! If I drive down a street in our area that was once dominated by very successful agents...the streets are now littered by agent names and company signs that I've never heard of! Quite a change in a very short period of time!
Patty & Scott Carroll - RE/MAX, Vancouver WA I do not think it is limited to any one area. The national Association of Realtors almost doubled the amount of agents in 6 years! 725K to almot 1.45 Million.
PHIL The interesting thing about Independent subcontractors we all do our own thing! My thing is Internet marketing. 24/7/365 and not worrying about the price of a gallon of gas because I refer out a lot of our work!
Nice post. I like your concept of 24/7/365 marketing. I have been thinking of refering out buyers who are not from close by.
GITA BANTWAL, REALTOR BUCKS COUNTY, PA HOMES The reality of the "24/7/365 marketing" is that there are not as many buyers out there in this current market. The good news is that I have plugged up a lot of Internet marketing holes that existed! I have very good web position, and poised to capture buyers on every search when the market starts to move again!
Jim,
I get calls from some of those biggies asking me what I'm doing to stay in the business....I already told you my secrets but I think what happend in they were used to selling those very expensive properties and spending all that money on the nicer luxury's in life...I guess they got spoiled because they can't wait for the big sale and have the other things they had that they are hiding from the repo man. My suggestion is take any deal you can such as rentals or little deals...at least they close and you can survive. The others were arrested for conducting business with the wrong people.
Hi Jim. Interesting to see it affect the big guys, not just the wee little ones like me:)!
I liked your comment about us all doing things differently. I like our flexibility to do things OUR way.
Ken
Real Estate is like searching for gold in the 18th Century. People come in this profession without education, ethic and they expect to make lots of money. Wrong concept...
Central Oregon Real Estate | Thesa Chambers, Broker So true! Some friends of mine that are excellent and very big are hurting, but because they have always run real estate like a business they are doing OK,a nd they will survive because they look at this practically.