Thinning of the Herd Good For Real Estate?

I think it's great! I am working harder than ever to build my business into the best it can be. How good would I be if I bailed out for a part time job at the first sign of hard times? My clients will see I'm no quitter. Failure is not an option for me.

Gary, this is both a positive and a negative situation all at once. Many well intentioned agents have little to do now as do other real estate related professionals. Having multiple revenue streams seems to be an option for those that wish to remain, if it does slow down even more. I think 2009 though will be a great year. I personally prefer now to not work for a "big lender" as it is quite pleasant to be in a smaller arena.

I believe in the survival of the fittest. And those who survive has not only shown their ability to market themselves but also to survive as a small savvy business owner.

Thin the herd!! I will make nominations! We all know agents who really need to find another line of work.

Hi Gary, The instinct ,if one  is well positioned in the industry is to say yes, the real estate market needs thinning. In a perfect world with perfect circumstances, sure, we actually need less REALTORS to handle the volume of the number of sales today.

But I would further add, who would be determining who should stay and who should not. As experience also proves,the best of any crop are not always the ones that survive and the whole thinning is or can be a very sad misfortune for anyone with the best intent to build their entrepreneur business. 

Now if the question was would I like to see higher standards and more stringent requirements in the first place, Yes. But after the fact who has a right to say that one group of entrepreneurs ( independent contractors) are less deserving than other. The last time I looked, God did not appoint me to determine the value or worthiness of anyone.

But for the grace of God , go I. BTW, this was a terrific post and it brings out the thoughts that many have today. They as well have the right to those opinions, I only speak  for myself.

The thinning has been major in our area...last december 800 turned in lockboxes because they didnt have funds to pay annual dues!

The thinning has been pretty heavy here too.  In my opinion, a lot of rift-raft joined the Realtor ranks the last few years - most got into it for a 'quick, easy buck'....finding it was not so quick and easy must have been a jolt for them....these were the same agents who put out less than qulaity work (not all, but many)....But then there are some who are 'thinning the herds' who are legitimately retiring after a long stint at a career they loved (like me)....

The thinnning of the herd is a good thing, and what happens in a recession in every industry.  Not pleasant to see anyone fail, but it is inevitable.

It is hard to say either way but it is happening so regardless we wish them the best.

It doesn't really matter Gary, as the creme always rises to the top.  The Praeto Principle   20% of the realtors do 80% of the business.  That is true in any market generally.  SO, the thinning is really that 80% and the 20% at the top are still at the top.  It's just a matter of people thinking it's so easy to get a license without much education, etc, that its easy money.  Once in the trenches you realize how much skill is necessary for a viable business.  Just like in staging, there are hobby Realtors...I want the career professional when I sell my house, don't you?  Most folks do.

IT's just the nature of nature. We won't be loosing talent just the ones who, for the most part, got in to real estate looking for a quick buck and a way out of an undesirable job. For anyone bucking the trend, tool up on the basics and remember this is an action-focused business! People on the sidelines are there for a reason... Thanks for sharing.

Gary, I think that reality will set in and there will be those that jumped in when the market was good will see that there is work that needs to be done to keep the boat afloat.

Hi Gary.  It is absolutely good, unless the govt. puts together a bailout package!:)

I started 3 years ago, and have had no great success.  It is what I am meant to do, so I persevere.

Many need to and will go.

Thanks for writing,

Ken

Unquestionably the "thinning of the herd" is good for any pursuit where the entry is relatively easy and the rewards too easy for a time - real estate, investing, home building, retail, restaurants, flipping, stock brokerage. Good to weed out the less serious ones. :)

Steve

Any kind of change is painful but from that comes new ideas, more efficiencies, and hopefully a stronger focus as a result.  Our MLS has lost about 10% of it's membership so far and I would expect that to continue to drop over the course of 2009.  Those that remain have a real chance to change the world of real estate and what value agents bring to the table.  Interesting times lay ahead.

Gary:  I think the thinning of the herd is good thing.  Survival of the fittest.  I have a great mentor that tells me stories of when mortgage interest rates were over 15% - she survived and is still ticking and teaching agents like me.

Hi Gary..Sometimes it is surprising who survives and who bows out.  It's not always who we think it will be nor who we think it should be.

Real estate is full of surprises.

It's interesting to see the difference of opinion here.  Some think the "not so good" ones are automatically eliminated and the "best" remain.  Guess I've been around long enough to know that is not always the truth.

Kate

I do think it is good.  I do feel sorry for some that have been leaders in our market for a long time that haven't been able to change swiftly with the times (internet marketing and REO/short sale listings.)

The true strength of our business is measured by the hard times. It is sad to see quality people leave a profession because their biz model didn't plan for the down time.  Great words of wisdom Gary.

Gary - Sorry to say, but honestly - I am certainly looking forward to the thinning of the heard and will be licking my chops for a bigger piece of the pie!