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Real Estate Math, Meteorology and YOU

We all know that the past 5 years, the number of people attempting the practice of real estate has more than doubled.

It is estimated that, by years end, nearly 50% of those practicing real estate will leave the business in pursuit of...something else.

Although it is sad to see some of them go, this cloud does have a silver lining.

If the real estate business as a whole were down 50% and

50% of agents leave the market ......

Just how much business if left for me....and YOU?

     The fact of the matter is that someone is busy.
                         Someone is working.
                Some one's business is booming.
     Not everyone's business, SOMEONES BUSINESS.

That someone might as well be YOU!

Real estate math can work as easily for you as against you. Look at the figures here and really think about the math and how it relates to your business. 50 percent of the buyers...GONE. 50 percent of real estate practitioners....GONE. Business does exist. You have to go out and get it. Get your share before someone else does.

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Posted by Christopher Walker California Bank Owned Property on 09/23/2007 04:48 AM

Comments (24)

agent education, active rain, reo

Originally posted at: Christopher's Hemet CA Real Estate Blog - Mission Grove Realty: Real Estate Math, Meteorology and YOU

24 Comments on Real Estate Math, Meteorology and YOU

SEP

2007

Hi Christopher,

What is the source for "nearly 50% of those practicing real estate will leave the business in pursuit of...something else"? I am interested in taking this source to my broker to discuss some strategies.

Thanks!

Rob

There's opportunity in any market. You just have to carve out your niche in that market to be successful.

SEP

2007

95% of agents who are hear today will not be in the business in 5 years. Out of the 5% who make it, half will struggle to get by and the other half will make the money.

Is your real estate glass half full or half empty? So much is in the perception.

I feel as many people as I had hoped would leave the business haven't left yet. The door is thatta way ~~> get out and quit clogging up the system.

Right on Christopher! My business is down but I'm still doing business. Considering closings are down 65% and values are down 25% to 30% in my market I'm pleased with my results. Keep moving forward is my mantra.

Chris - I see agents come and go all the time. Seems like the time it takes them to realize that it's not 'easy money' is getting shorter and shorter - and that's a good thing. For those of us in this business for the long haul it is of little consequence for new agents to come into the business, splash around for a few months and then move on. I'm still here. I'm staying. No revolving door on my end.

In Pinellas County for the first 8 months of 2007 there were 7,118 properties sold. The Pinellas Realtor Organization has 7,000 members. It's only down 1,000 members from last year.

I am glad you turned that comment into a post Chris, so very freaking true. Excellent job!

I'm frankly glad that some agents are looking into other careers. I'm tired of part-timers not only dilluting the financial pie, but I think many of them give our industry a bad image because most of them do not know what they are doing.

Lawrence: Businessweek.com had a really good article about it but...I will have to search for the link. FYI, our own boards (3) 1 of which has been reduced by more than 50% and the remaining two by 38% and 42% estimate that membership will plummet when dues come up again the first of next year. They say that MANY have been calling to see if their dues can be refunded, prorated etc. (It is the nature of the call that gives us even more indicators of things to come). I will see if I bookmarked the Business week piece.

Eric: What we are experiencing is very real and, although some markets are booming, places like Florida seem to be harder hit. A positive attitude wont cure every market but, a negative one will kill any market for sure.

Don: I disagree with you there my friend but...that what this world is all about :)

Rosario: A positive attitude wont cure every market but, a negative one will kill the best of markets!

Chris: OK, OK, I'm leaving:}OOps, I cant, I have 22 others that rely on me to feed their families. Well, they have to rely on themselves first but I AM there to help them though any changes in the market. AND, YES it does seem that way Chris. We have all had the pleasure of dealing with some folks who should not be in the business. The good thing is that we get to meet quite a few that are great to work with.

Bryant: If everyone worked as hard as you do and took the time to play hard too, THEY would have more business too. It is not easy out there it is HARD work. Balance your hard work with some fun time and it wont seem so much like work! Live a Little! Take a little lesson from BB or, come out to California...The fun NEVER stops. Bryant, you are an inspiration to so many. Keep it up.

Carol: Splish Splash, as they play in the sandbox, we do get to take a little bath. Not a bad thing. A lot of those little devils have something we can learn from them and when they go...at least we got something out of it! Nothing but hard work and god fun for a while for sure. Thanks for hanging out Carol!

Sharon: Some markets are much tougher than others for sure and no amount of positive thinking will cure that. Hard work.....really hard work with some innovative thinking and....taking time for some fun, will certainly help. Hang in there and do all that you can do each and every day. Your hard work will pay off.

Jason: I had this as a draft and, after reading your post, decided it was time to post it. Thank you for your inspiration. It could have gone the way of so many more....and some should have. Deleted before posting. Glad to see you having some fun with your work!

Al: Pick their brains before they go AND, if they have a client list at all, get it from them.

Chris: Well said. The people who stick around now will be perfectly positioned when the market turns, also. People will know who to trust, and there will be too much business for you.

Great post - thank you for sharing it with the Active Rain community.

Keep'em coming!

Chris, So True. At a recent Buffini seminar by Joe Negro, he stated the same information attributing the figures to NAR. After 31 years, I have seen many ups and downs. Thanks for your unique way of presenting this info.

Chris, really like two things here. the graphics are great, especially the buildings. Also like the math. And wish it would happen to a lot of hobbyists up here. It's not so much about getting more business though that causes that thought, it's overall market health that drives it.

We'd prefer it if all agents were full-time CRS's and then some. If so, we think the public would be much better served and informed.

Congrats on putting a good one together here.

Yep, it's a tough job out there. Only the fittest will survive. Keep at it hard and strong!

All the best,

Beth

SEP

2007

Do we really need more agents in the business when so many now in the business are struggling to make ends meet in the market?

Christopher - Well put. I encourage anyone who takes this business seriously and who puts the clients' interests first to stick around. I won't miss the rest.

Hallelueja - You are so right on. I am working harder than ever. I don't sleep in anymore. But I am busy. The business is there you just have to be ready and available.

Also - in the Raleigh Area - 60% fewer students attending Real Estate School. This is good news.

I have noticed a lot of agents jumping ship in my area...

I don't want anyone leaving the business to be honest with you. The more real estate agents in this business working hard and making money,the more harder it is going to make me work. Great post.

SEP

2007

Joey: Always....just enough.

Armando: Thank you.

Ruth: I do believe that Businessweek also attributed to NAR but, they have already taken down the story. They must need larger servers:)

Gary: No, it is not the health. We all should recognize that the market is not all roses. Some agents attempt to detach themselves from reality to stay positive which will only work for so long. There are still people out there in the market and we all need to focus on where it is. It is an added bonus that, every day, agents are leaving the market which increases YOUR opportunities. Thank you for your comment:)

Beth: Survival of the fittest. Go get em'!

Bob and Carolin: Nope. Still see those agencies advertising heavily for more agents though. A business model designed to be profitable for the broker before the doors open. Desk fees, advertising, marked up materials and on and on. Sad for those investing thousands of dollars for a grand illusion.

Tom: Hear, hear! Tis' a good thing that natural selection.

Rebecca: I hear you. It used to be that 1 out of 3 required 80% of your time. Not is seems that ALL require more time than there is in a day. A product of too must conflicting information out there and some seriously bad advice from others. I was in escrow with a very god client of mine that pulled out on a bargain because a friend of his told him Lennar went bankrupt and was selling inventory at 20 cents on the dollar. He now knows....he missed a good deal. And NO, Lennar is not bankrupt and having a fire sale.

Jeffery: Many have also walked the plank. ;) What happened to your meta tags? No change yet on the home page?

Lanre: No worries. Most of the productive ones are in for the long haul. The ancillary service providers should be liking that, a little bit anyway. Their is an office in our town that, this time last year, had nearly 200 agents. They are down to 40 now. The 150 or so that left accounted for less than 10% of that companies business. Not mush of a loss except for the broker model that relies on their fees to make a profit.

SEP

2007

Having been around for just a few years (a few more than 30 that is ) I find out of every 100 newbies in five years there are about 5 left and even they tend to drop off over the years.