As the market has become more challenging I am seeing more and more posts dealing with the diminishing number of REALTORS®. I find it interesting that some of these seem to be grateful, in fact downright delighted, that some REALTORS® have had to leave the field. Comments often reflect similar sentiments.
Why?
Please do not tell me it is because we are losing the "bad" agents. Yes, I am sure we are losing some of them. However, we are also losing others that are as good at the business as you and I believe we are.
Do you really delude yourself into believing that only losers lose? No, unfortunately it does not work that way. I have known some agents that have survived much more than this latest bump in the road. Believe me, not all of them are agents I would want a family member to work with now or ever.
If we had a guarantee that only the ethical and competent agents remained following a shake-up I would do everything I could to create one. It is not that simple. Real estate is no different than any other field. There are some in every field that hang on and on no matter how poorly they do their jobs. Some are just better at faking it than others.
I have yet to see a study that showed of the REALTORS® that left the business 80% were lousy, worthless agents and only 20% were professional and well thought of by others in the industry. (I'm using the proverbial 80-20 ratio which appears to be so popular in real estate for illustrative purposes only.)
So what if some people became REALTORS® when the market was hot? They had a perfect right to do that. The gates to real estate heaven did not close and only we were allowed to be there. People have become REALTORS® every single year since this profession has been around. Every one of us had our motives for becoming agents and that includes our timing as well.
The fact that there are agents that look at someone else's misfortune as good fortune for them should perhaps re-think their motives. Yes, I understand that when I get a listing that someone else vied for, I have won and they have lost. Revel in it? No thanks! I'm going to have my loses too. Each and everyone of us does.
What is it that makes some agents appear fearful about competition? I have never been concerned with the number of agents in my market area. Sometimes I have been concerned with agents that "work" outside of their areas of expertise because they are chasing the money. There are agents that take the time to find out as much as they can about another area, others just move blindly ahead.
Real estate is a competitive business. We should not be in it if we worry about having to go up against others. It is how we go about it that tells alotabout us. Wishing to be rid of fellow REALTORS® just to make life a little easier for me is not how I run my real estate business.
If you are gloating at the fact that some very good agents may have to give up real estate because of this economy what does that say about you?
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Kate, A few of the newer younger Agents I know have left the Biz because they had young children to support and needed a steady income. When the market turned they made the tough choice to go in another direction. These were good agents that started out with a lot of promise, but could not afford to wait for the market bounce back. it was sad to see then go. Now how could anyone gloat over that!
Ginger
Kate, I for one, am glad that some of the agents are leaving. Not the good professional ones, I feel bad for those folks, but the ones that are chasing the money. They are the people that follow the new hot money trend. I wish and hope that the survivors are the ones that keep real estate and what is good for the consumer in their hearts have what it takes to make it through this market.
Kate, We have a great office in Lynchburg, I like the agents I work with. I was sad that one left RE/MAX today, but fees are higher than where he's going..... Many agents are taking second jobs and they're struggling to make a living. That could be any of us..... there but for the grace of God go I.
Kate,
Point very well made.
Your right about the people that will gloat over someone else's misfortune....that's a shame...
What about the Agents that have prepared themselves (as best as possible) to educate, think outside the box, trained themselves, are disciplined and don't wait for the business to fall into their lap...the ones that go out and make it happen...those will be the ones that are standing after the dust settles.
Kate, you are wise beyond your 29 years old self. Only losers, lose. Hah! You speak from great humbleness and I so love it. All the departing agents are not roadkill you are so right.
Kate - I actually had the same thought recently, as I have watched some of my AR (and local) friends leave the business, although many of them are really solid agents. Times are tough - great, great post, my friend.
Kate - 32 years at this, I've seen them come and go! Yes ... we are losing some good one and yes, we are losing a lot of bad ones!
This is the most interesting time I've ever experienced ... just keep your head down and keep charging!
Congratulations on the feature Kate. Well written, and a good thought observing what is going on.
Great post. I have seen some of the money-chasers and looky-loos leave and that was certainly alright with me. But, we have seen some good folks go belly-up, too. Business being what it is, I can certainly understand their decisions. Some of us tightened our belts more than two years ago preparing for the worst. Some didn't. And, some have other financial considerations. Some I will miss, others not so much. But no gloating.
Nice feature! I am appreciating your writing style (saw your comments on Richard's crazy American Spirit post.
I think when most people talk about being glad that some agents are gone, they are talking about the money chasers just a few others have said. I am lucky that I saved during the lean times but it is tough and like Sheila said, getting creative and going out to find the business! I wish that some other good one could do the same but to be honest with you, in my area, I am not seeing that many leave the business!
You're right, Kate. You're going to get the good going out with the bad for a variety of reasons. Cream should always rise to the top. But, on the other hand, so does the fat.
Katy Kat, I'm just putting one foot in front of the other. I have no place to go but back into the depths of the Real Estate Business. That is my choice for better or worse. Great post. You know I love your face.
Later in the rain~Deb
Nice post... I think over all having less agents compete for the same business could be why some are excited... I say just go out and get your UNfair share
Good perspective! I may have been one that had a glimpse of enjoyment in the fact that there are fewer hands in the pot, but I also feel bad that they have to move on to a new career. I would also be one if it wasn't for my husband - I would not be weathering this storm without his income and support.
We recently had an agent/ appraiser class and when the instructor asked how many agents we had lost in our area one shout out reply was "not nearly enough". There is a new re course started for pre-licensing and there are 12 more coming in. Some leave others come in that is how it has always worked. Just the bad ones leaving - probably not, as that would mean all the rest that are left are great.
I am with you - I am of the frame of mind that there is "enough to go around". That being said, I am also fine with the loss of any unethical realtors who were just in it for money and not to truly help people. Everyone should have an opportunity, yes, but I am hoping that the economy will thin out those who didn't really want to do real estate for the right reasons.
unfortunately it is survival of the fittest. I feel that it has been way too easy to get a license and way too easy to keep. If we were able to eliminate agents based on experience and not whether you can pass 12 hours of CE then a lot of good agents wouldn't have to leave the business.
Kate this is a great topic and so true of my profession as well. There may actually be very little relationship between who survives and who doesn't. While we would all like to think that only the bad ones go away it just isn't true. A bad inspector with no kids or ex-wifes will always trump a great inspector with 3 kids in college and an awesome wife:)
Kate, I do not rejoice when I see people not succeed. However, in the 9 years I have been in the business, I have seen many people who thought this was an easy business and found out the hard way it is not. At the height of the boom there was one realtor for every 28 families - an amazing stat, isn't it? Congrats on the feature!
Hi Kate -- I agree with you. Life is too short to waste negative energy on wishing someone else bad thoughts, and it's just plain bad karma. If the proverbial rule is that 20% of the agents do 80% of the business, and the agents that leave, most of them aren't in that first 20% category to begin with, how much business to they really give up to the remaining folks -- pure math says not much, so even if it were true, it's not much of a benefit to remaining agents I would surmise.
Kate,
There are always going to be snipers in the gallery, so to speak. This market is a trial by fire, and only the committed and persistent will succeed, whether agents, lenders or title people.
Mike in Tucson
Yes, we are losing some good people no question. But it's a numbers thing. Too many agents when times were hot. Not enough deals to go around now. Just the way things are.
I'm glad your post is featured. I see the kinds of comments you're referring to on Active Rain and other places all the time, and it makes me sad. I know how much I love real estate, and I don't wish for anyone who loves this business and is dedicated to it to leave. As for unethical agents, the only time I think about them at all is once a month when I sit down with a cup of coffee and read the Disciplinary Actions on the MLS.
It is just a mere statement of reality of not only real estate, but any business. Is it sad? Yes? But the reality is that the pool of agent will drop in most areas at least 60% from it peak...and in some cases 50%. The positive side is that the opportunities increase dramatically for the survivors for at least 2 years until the pool of agents return. Read the book "Shift". It will help you dramatically during these turbulent times........
You definitely said it all straighforward! I wish all the good people in the world would all be protected and secure.... and all I can do is what I do to keep on moving on.
We live ...we die...it's what we do in between that matters. :)
Kate - Thank you for speaking out about this. We have lost a lot of agents in our area. We lost too many good agents who were also active members of our community that responded to community needs with donations of money and their time. We will miss them.
This economy is having a serious effect on many folks - and not all of them are bad folks. But we all have responsibilities to meet and when the income dwindles or stops ... well, there is no option but to adjust our sights and get to work. Each of us are different in our needs, so it's not fair to paint all those that have left the field as less than competent or sincere.
I like your straightforwardness about the loss of agents. I think many agents have left for a variety of reasons including supporting their families, the amount of work it now takes to close deals. the complexity of the market situation, the skewing of the market assignments to agents by the banks, just to name a few. This is also a lot harder business that many agents who did see "easy money" in their future ever realized. I don't think anyone is really "happy" to see the loss of these agents and their struggles, but rather they reflect on the portion of the real estate pie tha is left for themselves....not to twisted into a malicious position...just a reality.
Hi Kate,
It saddens me to see good agents that have to leave a business they got into with high hopes of success however there are times when we all have to make choices based on our needs. As for the so called "bad agents", are they really "bad" or did they lack proper training, mentoring and quidance? Not everyone that joins this business has good business skills from day one. I believe anyone can have a succesfull career in real estate with the proper mentoring and coaching. Great post Kate!
Kate, Very good post.
When I see an agent I know leave the business, I am sad. I also know that it could be me next. But it could be that they get a jump on a new career and real estate will sink lower for 10 more years. So I trust that it might be a blessing in disguise.
So maybe it's a win-win. They get head start on a new career where they might be more successful and the remaining agents get a higher probability of getting what business is left.
Kate - I agree 100% with the way you feel. I've seen this same type of behavior in other employment sectors, so it is not unique to the real estate industry. I've always been sort of shocked to hear folks openly express those sentiments about others misfortunes.
Kate,
I am glad you wrote this post, you make some very good points, and I agree with all of them.
The reality is that there are indeed too many agents in the business, it was unsustainable.
The people leaving the business are in most cases, I am sure, good people.
Unfortunately, there are also a lot of good people losing their jobs too.
I don't like to see people losing their jobs but sometimes it is unavoidable.
Kathleen - Great post and a good reminder to everyone that is hard out there... really hard. The economy is very difficult and a lot of people are struggling. I think the folks that mention this as a benefit just need to remember that. I would agree that yes, there is less competition for a Realtor to compete with and this is a great opportunity to increase market share, but I agree, gloating is bad karma. ~ Chris
It's not the quantity that matters, it's the quality of the agent/broker pool. Too many people assume that just because the quantity has decreased the overall quality has improved.
"Bad" agents is a strong term. It's more like people who just really need to be doing something else...
Kate, I feel like you do about this. Good people don't always come out on top, that is just life. There is an agent in my area who is very successful. Every time she sees me she asks me how my boys are. Very friendly, smiles all the time. She knowingly took a buyer that I had already shown a new construction development to, back to the development, acknowledged to the site agent that she realized they had been there with me and would work it out with me. Went to settlement, got paid and never said a word to me. I had gotten suspicious that this had happened, although I wasn't sure who the agent was. The site agent was uncooperative. I finally stopped in the new construction site after settlement and the assistant was there. I asked her to look in the file and tell me who sold the home. I was flabbergasted. I called the agent and told her that I expected 100% of the commission by that Friday, or I would take her to our board of Realtors. I ended the call with "how much is enough?". This agent out earned me by probably at least $100,000 ever year. Top, top agent in the area. How much is enough. Sadly, she is still in the business. Many agents that I really like are not. I did get paid, and she still smiles at me and asks how my sons are.
Hi Susan...You gave a very moving example of what I was trying to say. There are some agents that have survived and survived and I would not trust them for a minute.
For some, mentoring will not do a thing. They know the right thing to do but continually skirt the line and so they hang in. They maybe very "successful" in a monetary way but often do not have the respect of fellow agents.
Thank you for sharing your experience with us.
By the way, how are your sons?
Kate
Kate, Yes, this is happening in all industries. And it is just a sign of our economic times. I had to re-read your post and adjust my comment. You are right about the fact that we should not worry about the competition. I just read that in a book recently.
On another note: Bravo to you for the comment you left on Richards blog yesterday. I removed my own because it got ignored in all of the ugliness there and I decided I did not want to be a part of it.
Kate,
I don't think any of the really good agents are leaving. If they are that good, they are reinventing themselves. It's the people that just jumped in because it seemed like the thing to do that won't be missed. :)
Steve
The good agents aren't leaving yet, but they are hurting financially as they usually have the most listings to advertise. So cutting back on print advertising seems to be their avenue. There will always be some good and bad realtors coming and going in this industry. It's more important however, to keep an eye on your own goals and to focus on what is best for you and your own real estate practice. Don't be a follower. Steve said it well above, when he mentioned that the good realtors are reinventing themselves as most of them have been through the washer several times in the 90's and perhaps before in 1980. Tax Month will invariably make or break some, but there will always be radio advertisements advising newcomers that now is the time to get into real estate. Those are starting to air in our market already. This coupled with the fact that NAR continues to simplify the process to get in. For those on the brink, hang on if you can't, if not, it's not the end of the world as opportunity always awaits around every corner. Keep hope.
btw: Congratulations on the feature Kathleen. Great article!
"Do you really delude yourself into believing that only losers lose?" I hope you meant that as an oxymoron.
Every industry goes through growing pains and capitulation. Right now we (some agents) are capitulating.
Working in a commission only environment is not for the faint of heart. I don't care whether it's 1991, 1996, 2001, 2004 or 2007-2009. Those years covered both valleys and peaks in San Diego real estate. The agents I prefer to work with have survived one or more market crisis. The rest? I wish them well in their next career. This is NOT an easy business. If someone got into it because they thought it was easy money, they should be gone. And I wish they'd take some of the current REO listing brokers with them! We are having a bad behavior epidemic in San Diego real estate. It's a war zone. This too shall pass, I suppose.
Kate,
I agree with you and others here that some very professional and hardworking agents have had to leave the business and it is heartbreaking. Competition is good in good times and bad. Your post is very well written and your points well stated.
Kate-I agree with you. Anytime someone does a dance of joy over declining numbers in our business they need to look over their shoulder. Are they so sure that their brokerage is sound, do they have their pipeline full of buyers, is their bank account full and is their retirement guarenteed? No one should be happy that anyone in their same profession has failed.
Kate,
I just wanted to let you know I appreciate this post. I came very close to being one of those who gave up and left, and i guess I still have one foot out the proverbial door. I got into real estate right when the market started hurting bad around here in November of 2007. By last autumn, I was considering getting out of the business, and picked up another full-time job becuase my husband was laid off and we needed health insurance and a more predictable income. My office shut down and I was just going to call it quits then, rather than investing in all new advertising and marketing materials during hard times. Thankfully, I had the opportunity to keep my license active as a referral agent, and I did stay in the business long enough to realize some of the things I need to work harder on next go around. I guess this is a long comment to say encourage those who do have to look elsewhere, but who really enjoy the real estate business, to look for ways to stay involved, and to remind them that it is possible to re-start a career with a better plan and more economical business model and still find sucess. At least, that's what I'm hoping for this time around.
Hi Raine...All I can say is, I would be so proud to work side by side with you.
With the attitude you have and your commitment to make real estate a viable career there is no doubt in my mind that you will succeed.
I encourage you to post your comment but please leave it here too. (You could call it, The Other Side of the Story.)
It deserves to stand alone as a separate post. You deliver your message better than I can.
You have no idea how much I appreciate your input. You are exactly the type of fellow agent that I hate to see us lose and there are others like you. I've been in the business since 1986, through a number of ups and downs. I know it is a mix of agents that come and go in good times and bad.
It is so easy to think that when we succeed it is only through our individual efforts. Hasn't anyone heard of Luck?
There are two kinds, good and bad. Some of us get more of one than the other at different times in our lives. The fact that your husband lost his job has no bearing on your value as a REALTOR but it certainly did require you to consider the need for a steady income and health insurance. Many of us might have had to make a similar choice if something like this happened to us when we were not quite as established in our field and had family responsibilities.
Wishing you and your family nothing but good days ahead.
Take care.
Kate
You are a gem, Kate. I will not feign innocence, I have been somewhat relieved that the competition has been diminished. For a while, it seemed that every other person I met had a license or was in the process of getting one. I felt marginalized, not by lack of skills, but lack of new opportunities to ply them. When the renewals started drying up, I let out a sigh of relief. I'm not proud of it, but I did. Like any breadwinner, I welcome the ability to provide for my family in a less crowded room. That said, it does not diminish the truth of your post. I know too many good, solid professionals who are amongst the recently departed in our industry. We all like to pretend that only the bad apples get bounced from the cart, but that bit of self-deceit is far too naive for any of us to really believe. Unfortunately, there may be fewer total poor excuses for professional agents in our ranks now, but I would wager that the actual ratio of unethical to ethical may be higher than ever. The cunning ones are survivors, if nothing else. While many who comport themselves with dignity and integrity have boundaries that they honor, thus being forced out of the business altogether beore bending their standards to scrape by, the unscrupulous have long since mastered the art of self preservation. Our numbers are down, but only a fool would believe that all of the "right" agents have been purged. I shed no tears for some, but feel genuine empathy for many others.
And yet, I am human. I welcome the increased opportunities that the current market provides. Not sure what that says about me, but my boys depend on me.
I, for one, know quite a few agents that were thrilled when I left the business...because, quite simply, I was their competition! The bottom line is that I did not get into the business because I thought it would be easy money, and I did not leave because I couldn't hack it. Of course, you know all that! :)
While many competent agents have indeed left the business, I believe many MORE unprofessional Realtors have thrown-in the towel. It is still far too easy for one to obtain a real estate license and consequently there are thousands and thousands of incompetent agents around the country who frankly damage our profession. We need to lose them while we also tighten licensing requirements.