D.A.N.G.E.R. Ahead for Realtors

Real Estate Agent with Dirt Road Real Estate SA676002000

Funny thing on the way to the forum, Zoom that is, I learned of the 20 participants on the video call/chat, had either heard, but never read the D.A.N.G.E.R. Report or had never even heard of this real estate industry comprehensive survey published in 2015. I sat back in total, unbelievable amazement.


When I had a far more active sales coaching practice, I learned of this intensive real estate industry report shortly after it was published. Some of my clients were Realtors who were struggling. I did some research and discover this in-depth analysis of the state of the real estate industry.


This blog summarizes the top 10 dangers for Real Estate Agents, Real Estate Brokers and Real Estate Associations. In future blog postings I will address each one of these dangers. So stay tuned.


Impact to Real Estate Agents

  1. Masses of marginal real estate agents destroy reputation – 100% Danger
  2. Commissions spiral downward – 87.5% Danger
  3. Real estate agent teams threaten the survival of brokerages – 70.0% Danger
  4. IRS forces exodus of independent contractors – 63.0% Danger
  5. Decline of relevancy of agents – 60.0% Danger
  6. Agent centric era ends – 52.5% Danger
  7. Housing finance systems fails – 48.0% Danger
  8. Commoditization of residential real estate – 42.0% Danger
  9. Commissions concentrate into fewer hands – 40.0% Danger
  10. Agent is removed from the transaction – 31.5% Danger


Impact to Real Estate Brokers

  1. Regulatory Tsunami Hits (Dodd-Frank) – 100% Danger
  2. Paper Brokerages cause disruption – 80.0% Danger
  3. Real estate brokers lose control of data – 72.0% Danger
  4. Consumer Brand crashes the party – 64.0% Danger
  5. New business Models go mainstream – 63.0% Danger
  6. Real estate brokers simply go broke – 56.0% Danger
  7. Technology becomes a runaway train – 48.0% Danger
  8. FSBO develops into a do-it-yourself model -42.0% Danger
  9. Sales tax threatens margins (States adopted New Mexico @ 5-8%; Hawaii @ 4% and South Dakota @ 4%) – 40.0% Danger
  10. Portals leverage lead generation dominance (Zillow) – 36.0% Danger


Impact to State and Local Real Estate Associations

  1. Leaders not in unison with fast paced world – 100% Danger
  2. Too many uniformed decisions are taken – 80.0% Danger
  3. Broad resistance to consolidation – 70.0%
  4. The Lowest Common Denominator Impediment (Group think is the norm) – 60.0% Dangers
  5. The Unwieldy Governance Structure - (Associations often are their own worst enemy) – 60.0% Danger
  6. Reluctance of Leaders to Step Up – (Election cycle leaves very little time to get something substantial accomplished.) – Danger 56.0%
  7. Loss of Primary Revenue Source – 54.0% (Without MLS revenue, many associations would not survive) – 54.0% Danger
  8. Changing of the Old Guard (With aging executive officers and power struggles (legacy), innovation dies. AE’s have created fiefdoms.) – 42.0%
  9. Local real estate associations Charter Revoked (Not meeting Core Standards) – 36.0 Danger
  10. The Dues Disconnect (Real estate associations fail to correlate due to the actual costs in delivering programs, products and services) - 30.0% Danger


Many of these dangers even though identified nearly six (6) years ago are still very present today. Possibly as you read this list, you may wish to start making course corrections to your strategic plan.


Graphic Courtesy of Pixabay


Posted by

Leanne M. Smith, MS, GRI, rCRMS

2018 KGVAR Rookie Realtor of the Year-55+
219.508.2859 MST
Life Begins Where the Pavement Ends
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Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Hi Leanne Smith - I had not seen this.  Very interesting information.

May 18, 2020 10:19 AM #1
Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Leanne Smith - It is always good to know what the dangers are.  Though, my philosophy is to develop solutions to address these concerns.  Just like I am doing with our current situation. 

May 18, 2020 01:11 PM #2
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Hi Leanne- be aware of possible dangers, make adjustments!

May 18, 2020 07:50 PM #3
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Leanne Smith

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