Ian Morris's (ianmorris) Blog

Where did all the kids go? Where are all the young Realtors?

Ian Morris (Market Leader, Inc.) — Fri, 20 May 2011 12:17:49 -0700

NAR released its latest member profile this week, and as usual, it contains a lot of interesting facts, and points to both big challenges and big opportunities for our industry. One trend, highlighted by our friends at REAL Trends, is the growing discrepancy between the average age of Realtors® and that of home buyers. Of course, this discrepancy is not new to us. But, it has increased dramatically since the downturn. A quick analysis of the NAR data shows some pretty stunning changes in the Realtor® population between 2007 and 2010: There were 307,000 fewer Realtors® in 2010 than there were in 2007. That's a 21% drop, and a big deal, but probably not a shock to any of us. What is more noteworthy is where those losses came from. Of the 307k net losses, 270k came from Realtors® under the age of 50, and 379k came from Realtors® under 65. Now, you may be thinking, "that doesn't seem to add up"... That is because there are now 72k MORE Realtors® over the age of 65 than there were just 4 years ago - an increase of 44% - offsetting the losses in the other age brackets, and bringing the net loss number down At the same time, the ranks of Realtors® under the age of 65 has been decimated - down by more than 35% The net of all this is that the median age of Realtors® has increased by 5 years to 56, while the average age of home buyers remains 39. This is of course not all bad news, as it means more consumers are likely being served by seasoned veterans who know a great deal about the business, and are strong enough to have weathered a nasty downturn. But, it does suggest a big problem - and opportunity - because in general, many consumers often look to be assisted by professionals who are similar to them, particularly with regard to age. For young Realtors® looking to build their business, this presents a clear opportunity for them to do so with far less competition from their peer group than those who came before them (just 12% of Realtors® now are under 40). And for brokerage companies looking to dramatically grow their market share, this points to an outstanding opportunity for them to invest in recruiting and training targeted at building a new generation of real estate professionals. Interesting stuff...what do you think?

Recruiting and retaining agents is a whole new world in 2010

Ian Morris (Market Leader, Inc.) — Wed, 30 Jun 2010 12:42:13 -0700

As many real estate markets stabilize, more and more brokers are saying that their #1 priority is growing their team. It's likely you will discover the recruiting world is now very different from, say 2006. There are different expectations-agents are looking for a safety net, and the comfort and knowledge that you are going to be there helping to grow their business while they are growing yours. 1. Think Ahead. An essential step to a successful recruiting strategy is understanding how many agents you need. It takes time to find good agents, so don't forget to plan. 2. Get Their Back. Top agents know what they are good at-and they know that they are more efficient and successful when they delegate the rest of the details to other team members. Before you even begin recruiting top agents, make sure you have ample support to help all your agents with day-to-day tasks. 3. Show Them What You Do. When speaking with a recruit, show-don't just tell- them how you are actively creating marketing materials and generating leads for your team. Prove that you are committed to helping them grow and succeed in their business. 4. Provide Systems for Success. Top agents know that there are dozens of agents in the area capable of closing a deal, but real success and high volume require a systematic approach to the business. If a broker is bringing in clients and actively working on business development, top agents will follow. This includes offering tools that cultivate prospects into clients fast! Any agent would prefer to work a hot or warm lead than spend time cold-calling. Call extra attention to all of the tools you offer when you're recruiting-it's that important. And above all...more...

Industry leaders feel that the worst is behind us.

Ian Morris (Market Leader, Inc.) — Mon, 10 May 2010 07:50:44 -0700

I spent a few days in Dallas this week for the 2010 Gathering of Eagles, a conference for the nation's largest real estate brokerage companies put on by Real Trends each year. While our industry has more conferences than most of us can attend, I always find the Gathering to be an excellent event and a good way to get a pulse for the state of the real estate industry. Some quick takeaways: · State of the Market - the tone of this year's event was decidedly more positive than last year's. While I don't think many leaders are expecting a robust market any time soon, most feel that the worst is behind us. Brokerage companies see the current environment as an opportunity to differentiate themselves and seem more willing to invest (albeit cautiously) to take market share. · Network Level Innovation - There was an interesting panel featuring the leaders of the leading real estate franchisors and networks. I heard good commentary from all of the participants but was particularly engaged by Pam O'Connor, CEO of The Leading Real Estate Companies of the World, and Mark Willis, CEO of Keller Williams. Both leaders clearly articulated the ways in which they differentiate what they do from other franchise organizations. It's easy to see why both companies have continued to be successful in even the most challenging of environments. · Lead Generation - More and more attention continues to be paid to lead generation, and all aspects of the who, what, where, and how to be successful at it. In the "boom", many companies seemed to take a ‘who needs it' approach to the space, but now it's clear that the brokers and the networks know they need to create compelling lead generation strategies if they are going to effectively compete for consumers and for agents. There were many other excellent talks as well. Steve Murray, CEO of Real Trends and host of the event, as always, provided valuable insights about where Real Trends sees the market heading over the next few years. This insight is a big part of why so many leaders make their way to the event every year. Rich Barton, CEO of Zillow, did a great job of engaging the audience with his take on what's to come, and the important role that the iPad and technologies like it will play in the future. And speaking of Rich, it sounds like he and I both hit a few tennis balls with the same pro at the hotel. I didn't know Rich was a tennis player until the pro mentioned that another guy from Seattle had just been out on the court, and that the two of us should play when we get back to the Seattle area. When I asked how I would do against Rich, he just kept saying "too close to call, but it would be a great battle". So what do you say Rich - Can I interest you in an online real estate tennis match? Perhaps we could even make it interesting - for charity, of course.