Jonathan,  Thank you for the post.  I think I am going to stick it out.  However, I think as the field is weeded out the industry will become more efficient and professional.

Jon,

Tough love is real love.  Sometimes, it so hard to tell the people that you care about and the people that you work with that they have no business being in this business. 

It's hard. 

I've done it before.  I am doing it now.  I will continue to do it because I love them and I love this industry.  I want what is best for them and I want what is best for the industry as a whole.

We all carry these dreams and hopes of real estate making us successful and being recognized for it.  The reality is that the majority of us aren't ever going to see it (in real estate).

Success is a burden.  Recognition isn't always that great.  When you create the monster...you have to feed it.  It's tough in this market.

Maybe they are the lucky ones.

Hey Jon,  tough love.  :)

I think the industry as a whole is resisting change right now.  But some are adapting and finding a viable niche...like green.  :)  Awesome attitude in your post!

Jimmy, I think you are right, the industry is becomming more effiicient and professional. But I don't think it is just because the lower producers are leaving. I think that the changes in technology have empowered the consumer and have thus necessitated real estate professionals step up their game and offer more and better service.

Jessica, It is hard but I have believe that it is best to speak truth and act in the best interest of who you are speaking to, regardless of how hard the conversation is.

Jonathan- Ouch, that is kinda a rough post to read....luckily for me, I have come to the conclusion that I am gonna perservere and push through the lull.  Things like Activerain & daily blogging have revitalized my love for Real Estate and have given me back the passion needed to be successful.  Thanks for all you guys do!

Jonathan,  Excellent post!!  As I was reading it, I was saying 'WOW' to myself.  But these are words that many need to read and hear.  I know several people that fall into this category.  Actually, I'm quite sure that we all know many people.  You are also correct that those that come through this period of time will come through stronger and on top.  I intend to be there! 

True that! I have been with 3 different companies in 6 years. The first co. split up because of indifferences. The next co. I quit was because of the nickel and dimeing you. This current co. seems to fit my budget. I have a 80/20 split and that's all. I pay nothing else. Of course I pay my realtor dues and marketing fees. I am provided the signage at no cost. I office out of home and that's all I need to survive. No leads get handed to me, I go out and get them or they get referred to me. Bottom line, if I didn't have it this easy, I would be looking for a 9 to 5.

Angelia Garcia-Francesca Realty,LLC

Jonathan,

Great post! I sold real estate for two years...I did well, but knew right away that was not the career for me ...my 35+ years in Title Insurance confirm I made the right decision...it is definitely not for everyone...and for every success story I can show you ten who didn't make it!!! JMHO, Thanks,   Fran

Jonathan, over 330 agents have left real estate in my market area since January 1.2008.  There are still 2500 agents trying to stay in a declining market.  I plan to stick it out, working bank foreclosures, pricing homes agressively, and reducing expenses.  I'm one of the lucky ones. 

Jon- 2007 was a terrible year for me.  Almost all of my transactions turned into rentals and my earnings dropped precipitously.  But, had I been given your simple test, the answer would have been NO.

In spite of an awful, 2008 market, with closed and pending, It looks like I've covered last year's total.  I guess I was just ahead of my time and decided to avoid the 2008 rush,  I got in my "awful year", early ;-)

With all the expense we incur, I think some agents finally jump ship when they realize that, no only are they not making money but remaining in the business is costing them.

Marilyn, Yes! People don't realize that in addition to whatever they spend in out of pocket costs there are opportunity costs of not taking another paying job. So if you spend $500 in out of pocket costs, and you could have a job that pays $4k a month, then in essence that month cost you $4,500 if you don't sell anything.  People always forget that their biggest expense is their time.

Jonathan...

I am pleased to see you post your thoughts on this subject. This is all so very true. Good to see it being shot straight from the hip.

There are times when no amount of positive thinking will change anything. This market is one of those times.

I see people struggling yet they keep doing what they're doing hoping things will change. In our area things are not going to change for at least a year. Lucky for us we're resourceful enough to see our way through the mess. By the way...I can be a little resistant to change...But I'm not stupid :)

P.S. When you have a minute could you FedEx me a hot dog? :)

TLW...ROAR!

Oh...

I flagged this to be featured. Can't you just hit your own God Button? :)

TLW...ROAR!

Thanks for the post Jonathan, well written. I for one would not dream of hanging it up, I love my job more than anything I have ever done before and have stuck it out for 10 years. It inspires me, frustrates me and also thrills me, I have worked with some great people and made some wonderful friends through real estate and as for the current trend, I find myself working harder than ever, feeling very positive about the future, more so when business was easy to come by. I am spending longer hours and becoming more informed daily through the Active Rain blogs. Good luck to all that hang in there and also those who move on to different opportunities. And Happy Mothers Day to all.

Great Post and very timely!  Many of us in south Florida expected the "winter season" to give us a boost!  Didn't happen.  I am "hanging on" with lots of listings (took another one today!) and working with a few buyers.  Even though I just had a closing and another one under contract, it is hard to keep going knowing there is still a long road ahead.  I LOVE REAL ESTATE, but at what point do you "get real" about the lack of money flowing in???  I just had that conversation today with my husband.  We're heading out on a two week vacation next week and I'll do some thinking about the future. Good Luck! 

I looked at our MLS membership stats the other day.  5 offices gone and agents membership is dropping. I expect the numbers to continue to drop by the end of the year.

Jonathan- It is all in what you focus on. When agents tell me about how bad it is, I tell them they are only going to get more of 'how bad it is'. When the going gets tough, the tough get going- we have all heard those words and now is the test. I say get out if you are NOT happy!

Even if you are making money in Real Estate and are good at it but are not happy, then you need to find what thrills you, what makes your heart jump. To be great you must have a WHY that either makes you cry or makes you laugh, that you are willing to get out of balance for. You need to do what keeps you awake at night just thinking about!

We just had to have one of these, 'talks' with an agent. It is hard to see them go, but you know, it only brings everyone else down.

We have survived through all markets since the early 1980's. And we have made it through. We are thriving in this market. My passion is to change lives, to make a difference and to help others find their dreams and go for them. We have periods of burnouts, all people in all professions do.

Ask yourself, if you did not have to work for a living, what would you be doing? There in lies the answer. We became alive again in helping sellers save their homes from foreclosures, seeing and helping them to start a new life, to counsel them and to make a real difference in their lives. Since coaching, speaking and writing is my dream life; I get to do that too and the more I delegate the more I get to do in those arenas.

Jonathan, of course you are right, no one ever promised us a rose garden. We have been in a MI recession since 2001, but we have survived and thrived. The days of easy deals is long gone, but I love what I do and can't imagine doing ANYTHING else. Well of course if I never had to work  a day in my life that would be different, but I do and this is my lifes vocation, not a job.

Jonathan.....I have been saying this to people for several years now. The ironic things is that I had some rough years myself, even in a decent market. One might ask why...  I truly think that I am better than average in this business. My problem was that I could not get loyal realtors to give me business. This could be a long story. But as so many, I truly love what I do and am very passionate about helping others. Overall, thanks to the internet and especially to blogging, it has allowed me to use my knowledge, expertise, and professional attitude to sustain this so-called bad market. Overall, I am doing better than I did last year and will make more this year than I did in the last 1 1/2 years. And another reason to all of this is because I am licensed in 10 states now and will be in another 20 in 60 days.

Overall, a very timely post and it was shot straight from the hip.....

PS.... Jon, are you trying to be like Running Man Dan Cummings?

I totally agree - Don't continue the pain if you're not COMMITTED to SUCCEED!!

Gee, I asked myself your question...honestly.  Nope, still coming up with the same answer.  I'm in it to win it, even through this slow cycle.  Actually, it might be BECAUSE of this slow cycle.  Not having the same level of business in 2007 left me with the time to surf the net and learn about blogging.  That knowledge led me here, where I continue to learn every day and increase my value to my customers.  I firmly believe that I will come out on the right side in the end and be more successful than ever.

I have to stay in it.  I have been selling homes for 20 years and it is who and what I am and I am okay.  That said, when the market was busy and everyone and their dog were getting licenses I would warn some of the new agents to save and learn as much as possible because it would change.  Some have left and some have surprised me and have persevered. 

I do agree with Lisa, that if the agents can make it through this market, then they will be better agents and well positiioned when the market comes back.

I think if some agents that are trying to come to grips with their reality will feel better when the "real estate monkey is off of their backs".

Jonathan, My market is brutal right now and finding business that will end in a pay check is very difficult. BUT....I just keep moving forward. I'm actually very very busy just having difficulties getting things closed. It will pass though. I've been self employed for 20 years so would always consider other opportunities as long as I can be in charge :)

Tuff love and brutal honesty is the only way to go through life. Either on the giving or receiving side. I expect people to tell me the truth. I'm a big boy and I can take it.

I do think the folks that make it through this market will be much better at what they do. And if some do have to get out of the business there is no shame in that either. We have to do what gives us peace and joy. Money is secondary and has NOTHING to do with true success.

Hi Jonathan, we have not gotten to know each other yet, I've been on AR for about a year now.  I started after I slowed down my personal real estate activities, and the team is doing more now.  I've been selling real estate since 1976, and have been amazed all these years at the sad level of production, and money that 99% of the agent make.  The stats are 2-3 homes sold per year per agent, very sad.  Why do they stay?  Many reasons, but it's not money or giving great value to the consumer, how could you... at that level do either one? You can't!

My neighbor just the other day said to me, "When my job assignment is up in Iraq, I think I'll retire and do something fun & easy, sell real estate"!  I was insulted, I worked my butt off for 32+ years, at the beginning 24/7 to make a success of myself, and average selling 200 homes a year.  There is nothing fun (all the time), nor easy about our profession as Realtors.  The reason people have that perception is because of the 99% that do not do our profession or the consumer justice by having a real estate licence.  They hurt the industry and the public, so go get a job as a pet sitter, fun, easy, no stress, etc., and don't even think about the profession of selling real estate.

A downturn in the market is good for us, it purges the industry of some of the people who need to be doing something else.  So there are many good things in a bad market.  I went though the depression of the market in the late 80's-early 90's, and it was great for this, and to pick up some homes for 50% of value.  Yes I know there are many people who were harmed by the market, but that is called life, just like the stock market, real estate is a cyclical business, it goes up and it goes down.

Thank you for writing this, and I wish more people would tell it like it is, especially broker trying to fill desk, and flat out lie to new agents.  I discourage people who ask me all the time about getting into real estate, to consider what they will have to give up for many years if they want to be successful.  I tell it like it is, and don't sugar coat it.  If they are strong enough and dedicated enough after I tried my best to talk them out of it, and they still want to try it, I will give them 110% of help to get them started.  I've had people come from all over the country to "shadow me", most walk out and say, "I could never do that", a few, a very few go on to pursue real estate and become great agents.

You have a moral obligation to be honest to people thinking about getting into this business and also to those who are struggling.  This is someones life, family, and financial future you are messing with, so be honest.

Thanks for telling it like it is, Liz

too funny - I recently asked myself this very question - my answer was maybe - but it would have to be perfect - guess I like the struggle - I am here until the whistle blows and I can go no further     

Direct and to the point Jonathan. Selling real estate in now like a real job. You need to work at it. The easy times are gone. Not everyone is cut out to do this job.

Wow.  Good post.  Some people don't want change and don't want to buckle down in a real job.  So they are hanging on in the real estate field.  Same thing in the mortgage business.

Tough love or not I don't think I could work for anyone else after 35 years I think I'm in a rut to deep to get out of.

At our local Association we are still taking in an average of 40 new members a month.

Any one still questioning themselves after reading this post needs to get Seth Godin's The Dip.  You won't be "giving up" you'll be making a conscious decision to "quit."  Repeat after us, "it's okay to quit."

Wonderful post and I love your site! How creative and refreshing your photos are, both of you running in a marathon and the van with your name. Love it!

I strongly believe Real Estate must be in your blood. It can be a grueling, 24/7 career choice, so you must love your chosen career. You also must have a strong love of people and strong beliefs in yourself.

The successful, plan ahead in this business and conduct themselves accordingly, financially, etc.  The successful realize this is a job, and always has been, good times and bad times.  Many agents that skated in at the top of the market that are now struggeling probably don't realize what it takes to run their business, continually "watering their garden" for future growth.  It's tough for most at this point, and I"m sure all of us have questioned, even slightly at times, if this is REALLY what we want to continue doing.

I will and have to continue in this business...it's what I do best and what I love...thankfully I'm busy making deals...not all large ones but consistently. Plus I can't work for anyone...I'm too picky:)

You know... I'm struggling.  I'm having a hard time making it... but I am in a position where I can work at it longer... and I have no intention of quitting.  I'm just too stubborn, and I have too many good ideas that I think will end the drought. 

And you are right, tough love is just love.  Telling someone what they want to hear because it is easier isn't love.  Making the tough decisions IS love.

Thanks for the tough love. As an agent who's husband is also in a slow sales market with no steady paycheck, it's been a difficult year to say "I'll stick it out... this will weed out the others...stay positive...keep working the systems, etc" - however, that's exactly what I've said. I also think it's not necessarily talked about in the open here at AR because this has become such a positive, supportive community. So here's to going against the grain - I took a salaried position in my office this week (Relocation Department Director).

Yes, part of me feels like a total failure, but at the same time, after putting pen to paper and realizing the net loss I've had over the past 12 months (even with a reasonable amount of production), it was finally time to bite the bullet. Luckily I won't be leaving the industry and can still service my listings.

To those of you who have stuck it out and are still going strong, I say CONGRATULATIONS. To those of you who have made the decision to supplement your income - CONGRATULATIONS. To those who have decided to leave the business altogether - CONGRATULATIONS. We've all got to do what's best for ourselves and there's nothing wrong in making the decision, it's the period of indecision that hurts the most.

Thanks for the great post and discussion!

Jonathan - Many have come to this cross road ,and for some it really make sense to move on.  The existing market condition means as agents we have to work much harder and with more stress.  I  personally like a challenge and is positive I will be able to weather this storm.  I applaud anyone who will have to leave the industry if that is the sensible thing to do and I wouldn't consider such a decision a failure.

Good post, I think al lot of the agents that will be leaving the real estate field soon are not web savvy enough to be on ActiveRain. You might have to send a memo to their office. :)

Hi Jonathan, You nailed it. An awesome message. Tough Love Indeed. Change in our industry is only part of it. Our country and communities are changing and different values are surfacing. They are not always easy to embrace. Marching to your own drum beat while it exercises your uniqueness, doesn't leave you often at a place where you will find companions. We must also be clear what we are asking for, we may get it.

I could never go back.  Only one particularly rotten day in the last year I dreamed of bartending again because my problem customers are only a couple of hours vs a couple of months.

Otherwise, I could not live without the flexibility, the control, the satisfaction I get from working in this CHALLENGING career :)

Being honest with self is the most important part of being successful to begin with. We've had seasoned agents drop out this year only to have new agents come on board. Who knows what will happen from hereon. All I can account for is me. My business dropped about 30% but for years I've worked IN our office as well.  Keeps me motivated :) And it's worked.

You said it well...because all the wishing and hoping is not going to make IT happen.

I think life is too short to be in a career that you don't love.  If you love what you're doing, then I think you're doing the right thing.

You are right.  However, RE is like gambling... just one more try, just one more sale.... However, I do think that you will see a departure in the number of agents.  Yes, I would take a full time job with decent pay and benefits. After a lot of soul searching, I am even ready to re-enter the IT market.  The factor with this becomes childcare - but that is becoming less of an issue.  My initial plan was to get through summer with RE (doable) but I am looking for other opportunities along the way.

I did see a generic article/ad for new agents in our RE section of the local news. I thought that was kind of interesting.   The schools must be starting to feel the pinch (now that the crunch for CE is almost over.)

Jon... Nice to see a realistic opinion to a common scenario.  Over the past year as more an more agents were faced with the decision to leave the business I have given similar advice while all the bouncy bubbly types were advising friends to stick it out....   Makes no sense to drive yourself deeper into debt while holding onto a pipe dream of better days to come....

Jonathan, It's nice to see you "voice your thoughts". Personally, if I had to leave Real Estate it would break my heart. I haven't been in the business long enough to have known the "good times". All I know is that it is hard, never ending work to make a living, yet I love it! Yes, these times are hard, not only in Real Estate but in many careers. The price of everything has shot up and we have to work twice as hard just to exist. Real Estate is my passion and I will make it work!

Jonathan -  I love this market. It's a lot of fun knowing that people really have to work to get listings sold. Now when I go on listing presentations, I don't get the comment about cutting commissions because it will sell in a week. I can actually decide if I want to list the house or not, usually based on how they want to price it. It's also easy working with buyers , now that homes aren't in a constant bidding war.

Yes. This is much better.

jw - i suppose the message is there. i had a sour 2006 and made extra effort to fill the pipeline and 2007 showed a healthy 43% increase. 2008 is already damn near half done (i don't count july, august or december as actual months...anything done then is gravy). i figured that i could accomplish more by reaching out to a talented agent that was floundering. together we are moving quite nicely. rather than boot the agent out the door, i found another piece of my personal success.

i am not fond of bath water but i sure love babies.

Recently, an ActiveRainer commented on one of my posts that "you old-timers have your head in the clouds and just don't know how tough it is out there for most agents."  I had to laugh at that because my husband and I started something in the 80's (when we still had young children) to help us cope with a tough real estate market, and we've continued for over 25 years:

Get up at 4 a.m., 365 days a year, to deliver 4 newspaper routes.  That extra $500/mo. helps us squeak through the tough markets and build a reserve fund during the good markets.  Is it "beneath" me?  Yes, but...  No matter how well real estate goes for me, we keep doing this because we know the bad times are part of the deal.  

Great post, Jonathan.  It may be hard for some people to hear, but it is so true.  Like you said ... tough love!  Us?  We wouldn't dream of throwing in the towel.  We love what we do and are continuing to get good results despite market challenges.

Hmmm. Mixed thoughts. At first I totally agreed with you, but upon further thought I feel that support and encouragement are extremely important. Some people simply give up too easily and they could've been great if only they stuck with it. I think the difference is what they are doing to help themselves during this tough time. Are they sitting around, complaining, waiting for the phone to ring? Or are they out there working hard for new business? Maybe they just need a way to supplement their income to get by until the market turns. The best will never give up.

Jonathan,
Nothing worth doing can be accomplished without effort, and learning ways to do the job better.

What people do gettng into this business is forget that it is work. They are used being told what todo, before they change to self-employment. They want the independence without the reponsibiltities.They think it is maximum money for minimal effort, and the truth is far from this.

Finding the right fit is important, but finding your willingness to work is at the heart of it all.

I get closings in chuknks that can take between 30-90 days to get completed. the deals are gettting more complex, as most of them incvolve banks that are unwilling or unable to complete transactions quickly. Still, I have enough faith in my abilities, and the determination to keep plowing forward.

My calendar is cramped, and every workign minute is spent working. Since I home office, I have few distractions. if I am not at my desk making calls, I am in the car on previews, making calls, or going to closing, or showing homes. I keep a sign and paperwork handy to be ready for that "surprise" listing.

People who fail to manage their time will fail in this business. People who will not follow a budget will always be broker, and people who will not study the busineswill not keep up, and wil also fail.

Optimism, coupled with work ethic, and personal ethics are keys to a good start. Effort produces results, like nothing else will.

Lou

Is this a picture of you too?  hahaha just kidding. 

Thanks to ActiveRain my business is doing very well.  MAHALO PLENTY!

Real estate is not really just a profession,it is a passion and a lifestyle.  If you don't have the passion for real estate, in a market that is tougher than the past few previous years, than why would you stay in it?

And really, this should be the question for any profession.  You can tell when someone has settled for a lifestyle that is less-it is written all over their face and in the way they slump their shoulders.

Thing is,life was not meant to be that way.  Do what you can to do what you love.

Amen, Jonathan.  It's difficult to understand why some agents stick with real estate.  The don't seem to like it at all and it's shows in their productivity. 

Jonathan - in the current market many agents are doing just that!

Jonathan,

             Good for you! more managers should give agents that speech.I love the guy in your photo. Is that my brother-inlaw?