Truly!  This is how I see it.  The market downturn is providing an excellent opportunity for companies and agents to create a new way of doing business and do just as I suggest - align goals and arrive at a solution providing mutual benefit go forward. 

Here are my top 3 reasons why brokers and agent goals are not aligned today and never will be unless there is a change...

1.  Agents demand higher commissions and brokers are fighting over the last twenty-five cents remaining in a deal to keep the lights on.  Since the 100% concepts came into existence there has been a continual tug-of-war between agents and their brokerage over commission dollars.  This leaves brokerages with one of two choices -

• keep more and offer more
• keep less and offer less 

Imagine what would happen if/when agents and brokers begin to develop ideas and partake in actions that will add another $3 to a deal vs. fighting over the last twenty-five cents. 

2.  Due to the fact that brokers are paying higher commissions, they are forced to beg and plead with agents to use company sponsored mortgage and title products.  These products typically earn the brokerage significantly higher profits than the net company dollar in a transaction.  When agents have no financial incentive in keeping the mortgage or title part of the transaction "in-house," primarily due to RESPA laws, why would they?   Take this scenario for example...

A consumer enters a bank and asks the teller, "I need a checking account, am also interested in your CD rates and will need an equity line of credit established within the next month to do improvements."  Can you imagine this teller responding to the customer, "I'll handle your checking account, BUT, Fifth Third bank across the street has better CD rates for you and Wells Fargo next door has better rates on a line of credit." 

Sounds humorous, but this scenario plays out daily in real estate when agents take it upon themselves to drive consumers away from their firm's mortgage and title products, provide them 3 names of competing companies and send them on their way to shop.  Think of what the consumer, who demands a quality experience and one-stop-shopping (we've all read the stats) is thinking.  

3.  Agents are 1099 workers and many employ that mentality in their daily actions causing the consumer experience to differ greatly (even within the same brokerage).  Rightfully so, agents are out for themselves.  The analogy, "you never wash a rented car," comes to mind.  Just imagine the level of technology, support and more a broker could offer if everyone "owned the car" and supported ancillary services. 

This downturn in the market is an ideal opportunity to figure out how to align the goals of broker and agent and elevate the level of professionalism (agents and brokerages) in the business.  Who will be first to accomplish this?