The hot topic in the real estate industry for the past 18 months has been the shift in the market. Some markets are still more effected that others, and the larger markets are more effected than the small markets. Listing inventory is at an all time high in most markets and foreclosures are occurring at record breaking numbers.
What are you doing to prepare and train your agents in today’s market? The pro-active and progressive firms are training their agents on how to educate their sellers about the correct price, the current conditions and how to get those listings reduced if they are not selling. What we have learned in the past 12 months is that condition, not price, is driving the market. Think about it. When inventory reaches the levels that we are seeing out there, there are lots of properties priced below market, so the ones that are selling are the ones that are priced to sell, and in exceptional condition.
What are you doing to get your agents trained? Over the past year I have discovered that most agents in the market do not know how to:
- Price properties correctly
- Stage properties
- Sell homes in 1-2 showings
- Overcome objections regarding their fee
- Prospect/ market to their existing clients and sphere
I guess that is why NAR released statistics in October stating that 400,000 of the 1.2 million members had not had a transaction year to date! Brokers are losing agents at alarming numbers, primarily due to a lack of training and support. It seems to be a vicious circle. When brokers lose agents, they lose revenue. When they lose revenue, they cut services. When they cut services and support, they lose more agents!
I say, let’s get back to basics and teach agents how to price a home correctly, stage properties, get them back on tour so that they know the inventory, and remind them to market to their best source of business, which is their friends, past clients and customers, and their referrals!
As a broker, you need to think twice about what services and support you are cutting in this market. Each agent generates an average of $20,000 – $50,000 in income to the broker each year. The most recent Statistics show that agents will stay with your firm an average of 4-7 years. We are seeing many companies cut valuable services that agents need to compete in today’s market. If you lose an agent who is generating $25,000 per year for the next 4 years, that is $100,000.00 in lost income. What did you save by eliminating the system? The real problem is that your agents are not selling enough homes. If they sell more homes, you have more money and so will they!
Article courtesy of Judy LaDeur International