Some Sobering Realities for The Real Estate Professional

I commenced this last week by embarking on some retooling of my business. As I mentioned in my recent post, I've taken on a new coach to tweak systems when and where necessary. To remain adaptable to changing market conditions, every business, small, medium or large requires continued assessment and sometimes reconfiguration. Mine is no exception. Staying current means remaining informed. To this end, Tuesday and Wednesday were spent attending Windermere Symposium, our company-wide annual educational and networking event. Windermere agents from throughout our ten state plus one Canadian province network gathered to hear the latest in market trends and statistics, strategies for improving business practices, etc.

Out of these two days came some very interesting statistics. For instance:

Of the 2.7 million agents licensed nationally, (by way of comparison, that's a number similar to the entire populations of countries such as Jamaica or Kuwait) approximately 1.3 million are members of the National Association of Realtors. 400,000 NAR-enrolled agents have not closed a contract this year. That's 30 percent. Assuming and applying that same percentage to the 2.7 mil yields a number of approximately 810,000. Think of it - well over three quarters of a million real estate licensees conducting little or no business in 2007.

The average real estate agent in the United States today is a 52 year old female; average broker, 62 year old male. Though 83% of buyers say they would use the same agent again on their next transaction, only 11% actually do. Of the 82% of sellers who say they would do the same, 23% do. What is your client attrition rate?

Who, then, is doing the business and where is it coming from? Thirty five percent of all agents are paying to play, doing two or fewer transactions per year.

Sellers come from:

·         44% By Referral

·         30% Repeat Clients

·         5% Open House

·         4% Agent Referral

·         3% Relocation Company

·         3% Direct Mail

·         2% Internet/Website contact

·         1% Newspaper Ad

·         1% Agent Marketing

·         <1% Sale Sign

Buyers come from:

·         40% By Referral

·         13 % Repeat Clients

·         7% Internet/Website contact

·         7% Open House

·         7% Sign

·         5% Agent Referral

·         4% Walk-In

·         4% Relocation

·         3% Agent Contact

·         2% Newspaper Ads

·         <1% Blind Marketing

Consumer expectations have changed significantly over recent years as well. Today's real estate customer expects calls to be returned immediately, communication and networking by means of E-Mail/phone/text messaging, real estate forms available on-line, on-line real estate tools, extensive Internet marketing, on-line social networking, mostly on-line home searches, and they expect their real estate professional to be an expert on everything real estate and home-related.

Social networks such as MySpace, Facebook, LinkedIn and Second Life are providing agents new avenues and opportunities for business. Blogs are everywhere.  Baby boomers and members of the silent generation are not living in a technology bubble either. Of the seventy plus social networks currently active, at least ten are devoted to groups aged fifty and over.

For agents bent on building successful businesses, the message is clear: your referral network is your lifeblood, technology is king and your client expects you to be an expert and top-notch service provider, not gatekeeper.