It's a fact: By the end of this year, nearly one-quarter of the Colorado real estate agents in business three years ago will have quit the business.
What are the reasons for this?
Well, the easy thing to point to is transaction volume, since NAR estimates that this year we'll see a total 4.82 million closed transactions in the United States, down almost one-third from the all-time record of 7.08 million sales in 2005.
So there's less fruit on the tree, and none of it is low-hanging.
Selling in this market is difficult. It's true - for many agents, selling real estate is hardly enjoyable. It's not fun when a seller has to bring a large check to closing to get out from under a house he or she has faithfully made payments on for five years. It's not fun to negotiate a short sale for four months only to see the deal fall when the buyer walks away. It's no fun when buyers want to lowball, sellers won't (or can't) make repairs and fear and loss are the overwhelming emotions in the market. No, that's not fun.
Prices have also fallen across the board, which means smaller commissions. In fact, estimates are that total real estate commissions will be down nearly 50% this year compared to the high-water mark in 2005.
So the work is harder, the checks are smaller, and the clients are fewer.
But what about the agents themselves? Just as the tide as has gone out on the US economy, so has it gone out on average real estate agents. And there's the word that makes all the difference - average.
If you have settled for being average, the market for average real estate agents no longer exists. Buyers and sellers today don't just demand your presence - they demand your expertise and integrity.
And so the consolidation taking place in the real estate market comes down to this... if you can create value for your clients, you will survive. If you can't, you won't.
* Did you educate your buyers about the purchase contract, or did you just ask them to sign it?
* Did you show your seller how you will market his home, or do you just hang a lockbox on the door and hope?
* Did you return that call promptly, or did you ignore it?
* Have you attended classes to learn about the important changes in the 2011 contract, or are you just going to wing it?
* Did you hire a professional photographer? Did you shoot video? Will you stage the listing?
* Did you engage and creatively respond to the buyer who submitted a lowball offer on your listing, or did you simply let a potentially motivated buyer walk away?
There are so many examples of how we can create value for our clients. If we can do that, we'll get to the other side of this market.
But it's up to you. If transactions are down one-third from 2005, you need to be at least 50% better than you were in 2005 to survive this market. Go get your CRS. Or GRI. Or CDPE. Get educated, get motivated, get inspired.
This market requires tenacity, creativity, authenticity and action. Do you spend your energy creating a better you, or do you spend your energy hoping for the return of a market that's not coming back?
It's time for all of us - those of us in real estate and those of us in every other line of work - to rise to the challenge.
This market requires tenacity, creativity, authenticity and action. Do you spend your energy creating a better you, or do you spend your energy hoping for the return of a market that's not coming back?
It's time for all of us - those of us in real estate and those of us in every other line of work - to rise to the challenge.
