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Agents - Will They Stay or Will They Go?

In this real estate depression we're experiencing, will they stay or will they go is the million dollar question - especially for the NAR who stands the possibility of losing agent dues during these times. There are still over 1.24 million Realtors running around out there - a number I thought would be under a million by now.

Over the past few years we keep hearing about how agents are going to quit the business due to fewer transactions making it difficult to earn a living. Gone are the days where one could simply sit at you desk, pick up the phone and take a listing. Today you have to do work and the better agents in Real Living seem to be maintaining (and sometimes improving) market share.

Even so, I'm still not convinced that we're going to see a significant drop off anytime soon. Agents I know who are not able to earn a respectable living in real estate now have full time jobs and are keeping their licensing and paying dues. I spoke with one woman at a school function a few weeks ago and she said she had completed 5+ transactions this year WITH her full time job responsibilities. Her total compensation will actually increase this year - a trend others in many industries are not experiencing this year. She is keeping one foot in the real estate pool of water while earning full-time income.

I believe that non-committed agents like the one mentioned will sit on the sidelines until things turn around and re-join the business full time when it becomes easy again. Who knows, maybe these agents will come back even stronger with more connections (co-workers and business partners), improved technology skills, and renewed energy - as a direct result of their non-real estate related work experience they are gaining in "W-2 world."

What do you think?

Posted by Chris Svec on 11/26/2008 07:53 AM

Comments (28)

realtors, real living, agents, real estate depression

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28 Comments on Agents - Will They Stay or Will They Go?

NOV

2008

It is a mystery to me as to whether any great numbers are leaving this business...I thought the slow down would weed out some of the less committed, poorly trained agents, but sad to say, not only are they are still among us in great number, they are just harder to track down with questions!

I agree! Here in WI supposedly over 35% of agents didn't renew their licenses/dues, but there are sure still alot here!!!

Here is Calfornia we are seeing a decline, the concerns that I have are how can an agent work a full time commitment too a regular nine to five and do a good job of selling or helping a buyer in real estate and keep abreast of all the changes, something has to give.

Hi Chris:

Absolutely...agents will go, or just move their license into a referral status.

In our area, the 2009 bills just came in the mail, so agents are thinking whether to pay them or not.

Let's face it, a real estate license is easy and quick to get. Also, initially, it's a relatively inexpensive business to get into.

But once they are in and get hit with this type of market, then the realization sets in when they are faced with paying another year's fees.

Enjoy the holidays,

I received my Dues Package a couple of weeks ago. It will be interesting to see how many people actually stay in the business. I agree, I think more agents will go on referral status.

My husband is a real estate appraiser and we talk about this all the time. Should he stay or should he go? And the first of the year takes the big hit with all of the expenses. E&O, licensing, etc etc. While I'd like for him to have a full time job too until the market picks back up, what will he do since this is the only thing he's done for 15 years? And for what type of company that won't make him sign a non-compete.

Alas the SAHD is a good option considering our first child is on her way in February. That's just shy of $1000 in our pockets every month vs daycare and is more than what we're bringing in now with the business.

So in our case, he'll stay. If just for the part-time work and we'll work around the SAHD situation too. Hopefully 2009 sees and upswing.

I think there are a lot of people hanging in there! We have lost a few but not many!

Unfortunately, I personally don't see an upswing until mid 2010. I'm seeing agents keep their license in more than 'referral' status via my example. $1000 is not enough in my opinion to have someone quit - especially when one deal will likely make them whole on their dues. I still say, they'll stay, keep their foot in the water and jump 'all in' when the market bounces back.

One of the agents I work with works at another company. His last several deals have come from contacts at this "other" job. He's also improved his use of technology and people skills.

If we that are in the business full-time (translation = career minded) want to enhance or elevate our profession in the eyes of the consumers, now would be a good time to advance the jumping of ship for those not willing to fully educate themselves, promote their company's interests, and build continuity with customers and clients.

Every garden must be weeded. We need to get serious about ridding our garden of weeds that die out in drought and flourish in the rainy season. Weeds eat up the good soil and cause the desired fruits of our labor to be of lesser quality.

Set your standards higher and insist to your broker that the garden stay healthy! Get rid of the weeds that weaken us and keep them out. We will all be better off and the consumers might even begin to trust us again.

If I were a full-time, active agent, I'd be looking over my shoulder for the agents like the one Integrity Mortgage person wrote about. The technology, connections, use of professional social media venues (linked-in, etc.), and business accumen related skills these folks stand to gain could improve their stock if/when they re-join the real estate salesforce.

Not to mention the business will definately look quite different when it turns around too - forcing agents who continue to operate the way they always have to the curb.

Chris, I personally have sold more and made more money this year in real estate, all during working full time now as well as through other transitions. It can be done! And those with whom I am talking who are experiencing continued success are making sure they are working their plan solidly. The success is out there, people - enjoy it!

Please know I'm in no way condoning getting a job and working real estate part-time, just posing the question/possibility of the upside others may gain by doing so. My firm has always been one for not hiring part time agents - but times they are a changin.

NOV

2008

I'm with DON. I also thought we'd see more leave this year than we have. I see so many getting part time and full time jobs to make ends meet, yet they won't hang up their licenses. This is maddening to full time professional agents. This week I have been now waiting 6 days for a part-time agent (was full time, now carrying 2 jobs) to get me a signed addendum. My seller doesn't understand what is taking so long. We had it signed and to him within hours and yet it's been in his hand 6 days. The seller is so mad. They want the buyer to sign it and their agent says he didn't even get it to them till day 4 (he was busy) and now he's working his other job all weekend and won't get to the office to check his fax machine. Maddening. GET OUT already!

NOV

2008

Hello, I thought that we would see a big agent loss in our area however we have had five new offices open within the last six months. Who knows the real answer?

DEC

2008

It is interesting to learn of the frustrations people like Erica are experiencing due to the agent on the other side being "too busy" to reply to an offer or close a deal. I'm certain others are experiencing the same. Great comment.

Yes... day 8 and agent has not replied today to my emails or voicemails. It's a stupid 1 page reply to inspections that I need. Nothing that should be "hard" to prepare or sign.

DEC

2008

Good luck on getting that deal closed. Probably should start looking for alternate offers.

There are some major differences in this current market. I think a lot of agents will linger one longer, because the cost of just maintaining a license is so cheap these days. A lot of the traditional models over the years have morphed into quasi 100% models that are cheap. We'll all see soon what happens.

Gotta agree with alot of the folks above....taking a full or part time job right now is like getting paid to prospect if you make the most of it. I think our field is unique in that the general public does NOT necessarily look down on those of us who work part time vs. those who are full time. With all the Web 2.0 tools at our fingertips, it's easier than ever to outshine our competition on the web giving the illusion that we are not just full time, we're BIG TIME when, in fact, the opposite may be true.

I'm part time, in that I do merge my career with being a stay-at-home mom. I have help that comes into my home when I do need to run appointments during the day, however I keep that to a minimum as I need to justify the expense, like every other, to my business.

It's a very interesting time for our profession. I am unsure as to what the true answers are.

Great comment Stacey. I don't know anyone who has the true answers right now. The thing I do know is that companies and agents will continue to make decisions differently every 90 days or so unti things improve.

I suspect agents in our market will not renew...:)

I suspect only the strong and creative will survive.

It's a shame that our business can be half a.. and part time.

This is my 30th year in real estate. I never considered it "easy" and always took my clients and business seriously, no matter what current economic conditions were. This is part of the problem many agents are experiencing right now. The pool of potential clients has shrunk and the pie share is smaller. Those that never had to really work for their transactions are wandering around zombie faced right now.

DEC

2008

Trey-

Your comment is great. I do disagree slightly in that those who had never really worked to get a deal done are walking around like zombie's. Those individuals who need income have jobs. Others are doing other things with their time, waiting until it gets easy again.

I read something the other day that suggested it would be 5-10 years before we get back to 2005 (peak) levels. They'll rejoin the salesforce then. In the mean time, build your market share to make it more difficult on these people when the tide washes them back into the market. Those with jobs will come back re-invigorated with new skills and more of a database than they left with.

DEC

With the end of the year upon us I see many agents opting NOT to renew with NAR. It's not only NAR the have to pay dues to, but local and state associations as well. Then add in MLS fees, E & O that many firms charge, etc and the cost can be closer to $3000. We have already seen huge numbers of agents bailing out of the California market and I suspect that trend will continue and be reflected on the national level by years end.

DEC

Jason-

Thanks for your comment. I believe a year or so ago I read that California had the highest ratio of real estate agents to households in the US. You reside in a market where the herd definately needs thinned out.

The normal number for Realtors was about 750,000 in August of 2001. I think many will linger on for this year, and leave before the turnaround.

DEC

Getting down to 750,000 would be a lot of Realtors leaving. And the unit numbers we're projecting for 2009 are right around 1991's number.

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