Go Broke as a Realtor

Real Estate Agent with Jon Gosche Real Estate


I usually write to attract potential clients to my websites.  But this time I am giving my humble opinion to you my colleges.

As I was listening to CNBC in the background today as I was working on my computer I heard the lead in “Why Realtors should be Scared!”.  So I tuned in.  The report was on http://realtydirect.com/Home/Index who are targeting sellers to save money on selling there homes.  So I immediately went and looked at the website. 

Tell me what’s new!  During the BOOM there were a lot of helpusell and assis2sell signs around.  Now I see close to none.  Bad business model.  Realtors more than almost any other profession spend hours of time giving FREE information and caring around people to look houses for WHAT?  NOTHING unless they end up with a buy or sell.

Realtors are the ultimate in FREE service.  Look at this objectively.  80% of Realtors have been Realtors for less than 5 years.  After getting a license 3 out of 5 are gone three years later.  Real Estate Agency is a very high turn over.  VERY VERY few Realtors are with the same agency that they started with three years later.  MOST brokerages give very little to their Realtors other than “supervision” and I think that is pretty minimal,  Many brokerages financial success is having a LOT of Realtors paying their desk fees and/or percentage of commission.

I am a Broker.  Small un-franchised brokerage.  I spend a LOT of money driving buyers to the BEST Real Estate Site in Boise Idaho.  I have an excellent client capture system.  If I were a seller I would want ME to list their home because of that.  We have excellent web presents on  Goggle, Boise Realty or Meridian Realty and you will get us first or at worst second.  We have a lot of leader web pages.

Well I really chased the Rabbit!.  I began talking about why Realtors should be scared. Everyone in business should be scared to the degree that they understand that EVERYTING IS ALWAYS CHANGING.  If you were a new home construction niche only Realor in 2006 you are probably not readying this because you are gone.  Some in my company have been doing almost exclusively short sale listings for the last few years but for the last year I have been warring them that the END IS NEAR.

So I will stop rambling. Most of you have already quit reading so here is my point(s).

We are in a very fast changing world.

  1. What works today will NOT WORK forever.  If you are a niche Realtor very successful, new construction, short sale,, foreclosure, or whatever!  Do NOT get too cocky.  Do not get in debt. Save all the money that you can.
  2. Change your niche now.  Because it will soon be gone.

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Comments (1)

Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Jon, interesting post!    I have been in real estate 16 years, doing mostly relocation.     Sure, have many past clients giving me referrals in town, and also some ActiveRain referrals over the last few years.     I started helping advertise new construction a couple of years ago, and this year was my BEST ever.      I have changed companies 3 times, and in 2009 opened my individual brokerage, and loving it!

Nov 20, 2012 07:43 AM