Is the turnover of REALTORS® on the rise?

By
Real Estate Sales Representative with for real estate results in the Tri-Cities.

This time of year is when some Real Estate Brokerages, perhaps fewer and fewer, take out an ad in the local newspaper to extend greetings.  I’m not going to get into the merits of newspaper advertising, although it is well known that they have a depleting readership.

 

What I found interesting was comparing some seasonal ads for 2009 and 2010. This is all very unscientific of course, but it does help to illustrate a point.

 

There were only two local brokerages I came across doing the seasonal newspaper ads year over year and this is how they stacked up.

 

Brokerage #1 had a base of 33 REALTORS® in 2009, and by 2010, 10 had left and 8 had joined them. So 23 REALTORS® had been in the seasonal ads both years.

 

This meant that 30 percent of the REALTORS® from 2009 were now gone, and 6 percent hadn’t been replaced in the year.

 

Brokerage #2 had a base of 81 RELATORS® in 2009, and by 2010, 18 had left and 18 had joined them. So 63 of the 81 REALTORS® had been in the ads both years.

 

In one year, 22 percent of the REALTORS® had been replaced in brokerage #2.

 

The main point is that there is a big turnover in the real estate industry.

 

There are about 16,000 REALTORS® in the Province of British Columbia, and there has been about the same number of new REALTORS® licensed in the past 5 years but the total has remained fairly constant.

 

The total turnover of REALTORS® in BC for a 5 year period is darn close to 100 percent, and I believe that this turnover is going to get higher as we move forward.

 

Take your pick; a piece of the pie, or turnover?

 

Generally speaking, many of the more tenured REALTORS® seem to want to go to the same seminars with the same speakers and continue doing business the way they always have, and they’re all competing for the same diminishing piece of the traditional clientele pie.

 

The Gen “X” & “Y” are where the majority of business is today, and becoming even bigger markets every year. These markets are where the new REALTOR® might want to focus on getting established, and probably where many other REALTORS® will need to shift.

 

What are your thoughts?

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Re-Blogged 1 time:

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  1. Dan Edward Phillips 01/06/2011 02:48 AM
Topic:
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Location:
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Groups:
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Posts to Localism
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Toronto (Canada) Real Estate
The Lower Mainland, BC, A fantastic place to live and work!
Tags:
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realtor turnover
turnover of realtors
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Rainmaker
514,331
Tom Priester
Paradise Sharks - Jupiter, FL
Paradise Sharks

I hope that 2011 is a better year for all Realtors and while we will still have turnover I hope the numbers are lower.

Dec 27, 2010 08:29 PM #1
Ambassador
4,300,542
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Port, pretty good stats - we should run it for my state, too and find out where we are heading...

Dec 27, 2010 08:29 PM #2
Rainer
407,272
Randy Ostrander
Lake and Lodge Realty LLC - Big Rapids, MI
Real Estate Broker, Serving Big Rapids and West Central MI

Interesting spin Port. I know locally here in Michigan we have a relatively low turn over of agents. In our MLS monthly news letter there are usually only one or two coming or going. We lost a few more than we gained the last few years. Best of luck in 2011.

Dec 27, 2010 08:30 PM #3
Rainmaker
779,488
Dan Edward Phillips
Dan Edward Phillips - Eureka, CA
Realtor and Broker/Owner

Good Morning Port, interesting figures, your agent base is stable, sign of a good market.

Dec 27, 2010 08:44 PM #4
Rainer
140,514
Maureen Fukumoto
Help-U-Sell Realty Pro - Mililani, HI
Maureen

I've seen this over and over again. Many agents come into the business when the business is relatively easy and you can make alot of money without doing much work.  Many of those same agents leave when times are tough. 

Dec 27, 2010 08:46 PM #5
Rainmaker
179,568
John Grasty
for real estate results in the Tri-Cities. - Port Moody, BC
Your Tri-cities REALTOR, neighbour and volunteer.

Tom: A lotta hoping going on there! Seriously though, sure we would all like more stability in the industry but how would you recommend we bring that about?

 

Praful: I’m concerned that many people get into the business believing it is easy. This is information (the rate of REALTOR® turnover) that needs to be shared with people when they are first applying.

 

Randy: It sounds like you have good stability in Michigan. Any secrets as to why you have low turnover?

 

Thanks for sharing your comments and all the very best for a successful 2011.

 

John

Dec 27, 2010 08:46 PM #6
Rainmaker
179,568
John Grasty
for real estate results in the Tri-Cities. - Port Moody, BC
Your Tri-cities REALTOR, neighbour and volunteer.

Dan: Interesting that you consider 100% REALTOR® turnover in 5 years stable in our industry.

Maureen: It seems that the industry is changing almost as quickly as the markets. LOL. It will be interesting to see if the turnover brings the new skill sets required for the new technologies.

 

I appreciate you taking the time to stop by and wish you all the very best for a successful 2011.

 

John

Dec 27, 2010 08:59 PM #7
Ambassador
2,705,123
Liz and Bill Spear
RE/MAX Elite 513.520.5305 www.LizTour.com - Mason, OH
RE/MAX Elite Warren County OH (Cincinnati/Dayton)

John, It's a volatile industry to start with, throw in the more challenging market and the migrations intensify.  Shave a few dollars off the overhead, more and more we see agents leaving for smaller, less expensive brokers.  Throw in the others that quit entirely and I don't think any office has a solid roster month to month.

Dec 27, 2010 09:56 PM #8
Rainmaker
413,592
Navona Hart
Real Living Cornerstone - Farmville, VA
Selling the Best Properties in Central Virginia

A shift is necessary.  For some it may be too late.  I think that we could afford a turnover!  Good post!

Dec 27, 2010 10:57 PM #9
Rainer
33,771
Anita Slaven
Reliant Realty - Nashville, TN
Real Estate Broker - Nashville TN

Good morning John:

Great post. This seems to be a common trend in many parts of the US. Unfortunatally many have made a business in the prior years with listings and now that the market is somewhat gone stagnant they have not enough business to stay afloat, thus going back to 9-5 jobs.

As mentioned the new gen-x buyers utulize the internet to locate their home, then the Realtor. Agents without search engine presence will continue to perish unles they get visibility on the Internet.

Anita

Dec 27, 2010 11:35 PM #10
Rainmaker
1,219,187
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

John,

You have stated a fact that I have heard over & over even in good times.  They come & they go for all the reasons you & others mentioned here.  Then there are some of us that just keep going--probably because we adjust to the market.

Happy New Year

Dec 28, 2010 02:04 AM #11
Rainmaker
4,481,609
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

John,

Interesting post and commentary.  Given the changes we are all experiencing in the industry due to the financial markets and the new technology that continues to expand, it has become difficult for some of the agents to adjust let alone keep up.  We are seeing an evolution/revolution that many cannot or are unwilling to shift paradigms to keep up with.  Thte top producers keep up, keep changing, and keep adjusting.  Happy New Year.

Dec 28, 2010 02:58 AM #12
Rainmaker
179,568
John Grasty
for real estate results in the Tri-Cities. - Port Moody, BC
Your Tri-cities REALTOR, neighbour and volunteer.

Liz and Bill: The grass is rarely greener on the other side. Is it time for the industry to take stock and ask why rosters aren’t more solid?

 

Navona: “I think we could afford a turnover!” It seems such a shame to lose so many that have invested so much. There has to be something wrong with our model, as it exists; it seems to be used primarily as a revenue generator for the association.

 

Anita: Not being found on the Internet is like a kiss of death. Let’s hope more will understand that results are shrinking rapidly using the more traditional ways of marketing (farming, prospecting, etc).

 

I’m grateful for everyone sharing their wisdom and wish you all the very best in 2011.

 

John

Dec 28, 2010 04:32 AM #13
Rainmaker
179,568
John Grasty
for real estate results in the Tri-Cities. - Port Moody, BC
Your Tri-cities REALTOR, neighbour and volunteer.

Mary: Adjusting to the market is perhaps the most important part of our annual business plan update. This year for instance I’ve challenged myself to find out more about how QR codes can be applied. Happy New Year Mary.

 

Alexandra: I agree, it is this unwillingness to adjust and shift that you bring up that is at the heart of the problem. We have touched on a practical application in past discussions that, if adopted, could perhaps change things for REALTORS®: Kaizen! Any thoughts? A Happy New Year to you and Ron.

 

Take care,

John

Dec 28, 2010 04:33 AM #14
Rainmaker
1,219,187
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

QR--now you stumped me.  What are QR codes?

Dec 28, 2010 05:03 AM #15
Rainmaker
179,568
John Grasty
for real estate results in the Tri-Cities. - Port Moody, BC
Your Tri-cities REALTOR, neighbour and volunteer.

Mary: Sorry about that; QR is the abbreviation for quick response. There are plenty of links on the Internet explaining what it is and what it can do. This one describes it succinctly: QR Codes for Real Estate 101 and has visuals to show applications.

 

One of the taglines trademarked by Prudential seems appropriate: "The Future of Real Estate. Now."

Dec 28, 2010 05:54 AM #16
Rainmaker
1,219,187
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

John--thanks.  I followed the link to QR and now I feel a bit more knowledgeable.  Happy New Year!

Dec 28, 2010 11:14 PM #17
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