Many real estate companies are changing the way they do business...doors closing..models being changed...to stay alive in 2009.
The Broker's goal is to make a profit..this is their business..they depend on many....based on your word and actions as an agent...built on trust...in hopes to be compensated for the services they provide.
Some brokers require accountability...some brokers foot the bill for agents to make money!
There are many different models and the models and methods will continue to change as long as their are costs involved!
Nothing wrong with that as real estate agents..you must review the same as above and that would mean reviewing your business plan...your marketing plan and your budget and taking steps to run and maintain a healthy real estate business.
Recently an agent asked me a question and wondered why a broker competes when they are making so much money! (First of all big assumption, making a lot of money!) (As an agent are you?)
Many brokerages hope to make a profit but more than likely they may not!
Agents sometimes do not think about the overhead...the lack of sales from some sales associates, fewer associates and fewer full time real estate associates and the leads that are flushed right down the toilet that do not get worked properly.
I asked this agent a few questions:
- Did you close any transactions last month? Yes, 3 and they were the top producer of their office
- How many associates? 5 in my office
- Offices? 4
- Let's just base this on your office production and then multiply it by 4
- Did everyone close on a property or two? NO
- How about the broker? Yes, 2 and took 5 listings.
- Were their any other listings brought into the office? Yes 13 for the month.
- Do you think those listings are a benefit to the entire office or just the listing broker? Well I guess everyone, we have floor time!
So lets turn it around and start again?
- You closed 3 properties correct? Yes
- Did you meet your goals and your budget for the month? NO
- How many listings did you take? 2 Are you satisfied with that? NO
- How did you obtain them? Floor time
- Do you have any pending transactions? YES, 2 and I am not sure if they will close short sales!
- Can a business be successful wishing and hoping to close on 2 short sales? NO
- Do you do lots of floor time? Yes about 3 days a week
As we talked some more...the agent realized that it wasn't a horrible thing that the broker competes..because the agents benefit from the broker, they receive all the buyer leads and if any listing leads come in by doing floor time it's theirs.
I asked them did you stop to think that your broker spends thousands to maintain their offices, the leads that are generated and that maybe just maybe they really do not want to compete at all? But because its a choice between shutting the doors or trying a different way and holding on until the market improves.
The agent admitted to me...there was a huge office meeting...and in order to keep the doors open..the broker MUST sell compete!
As we wrapped up the conversation I told them..you got a pretty good gig going on but if you want to take your business to the next level..learn how to generate your own business...market yourself. And if you are not happy...quit complaining...either address the issue with your broker or for crying out loud...pull your license and go to an office where your broker doesn't compete or take that step and open up your own office! There is always a solution to every problem.
Just because you think your broker solely benefits from you and are out for themselves...look at the big picture and then look at your own business.. there are two common denominators here.....there is always a cost to do business and a misconception of amount of wealth being spread in each transaction...consider the cost of your own personal business and just as I told the agent now multiply it by 4 offices!
Your broker is probably not competing selling out of greed but competing selling out of necessity! When times were good the broker rocked and when times are tough....the tough get tougher on the broker!
Pay attention to the cost of doing your business because I can tell you there is a big misconception of wealth! Can you say C-H-R-Y-S-L-E-R!
About The Author: Midori Miller is a Real Estate Trainer and writes and trains Real Estate Training. Licensed Florida Real Estate Broker, License # BK645709 and a member of the Daytona Area Association of REALTORS. CENTURY 21 Sundance Realty has 2 office locations- Ormond Beach, Florida and Daytona Beach Florida. Contact midorimiller@yahoo.com or (386)453-3236.
