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The Gold Rush Is Over More Agents Leaving The Business

Every Sunday evening we have a group discussion with Realtors from different parts of the state of Florida. It's our belief that knowing an area helps all of us in understanding market trends.

The topic of conversation last night was "Agents leaving the business".

We discussed last night about a significant amount of agents that recently left the business.The numbers are staggering! It seems that 600 agents dropped out one board in North Florida, and i'm positive more will follow.

In South Florida the numbers of Agents leaving the market has increased as well.

There seems to be a drop in people who are attending Real Estate schools as well, although some now turn to the net for Real Estate courses the amount of people seeking a Real Estate license has definitely decreased.

Is this an opportunity to capitalize or should you start wondering what do do next?

I guess we as Professionals can look at this in two ways. Those who are able to ride out the current Real Estate market will have a huge advantage over others when the market returns. With the current drop in sales, Realtors and other people who are related to the industry will be seeking alternatives to supplement their income.

Many will become part time agents,some will just "park" a license,until the smoke clears.

Much like the Internet Stock Market Gold Rush that transpired 7 years ago, I believe we`re witnessing many agents who decided they could strike gold by obtaining a license! They`re moving on now because they can`t afford to stay in our profession.The gold rush is over for these folks!

I like to believe that many people came into our profession seeking a "quick buck" without the understanding that it takes time to grow a business. It seems that so many forgot the steps of building a business.

As the market evolves what are many of you doing differently than you were last year? How has the market changed your strategy? How do you handle your clients today versus last year?
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July 20 2007 - US

Replies (73)

Profile picture for bankes
Well, Mr. Daniels, Let me explain a few things to you. The State of Florida went through, let me see, how many hurricanes? Just here in Pensacola, remember IVAN?? Well, he made the real estate market jump to astronomical prices. Sooooo, every home-owner here thought, "Gee, think I'll 'cash-in' on this market. People were homeless, no homes to purchase. Housing went nuts. People looking for a "HOME". Flooded with buyers. Agents were in a total 'hay-day'. Soooo, your 24 hour a day job turned into a 25 hour job - you couldn't handle it. Agents were needed. Homes were needed. Builders, Brokers hired agents to SELL, SELL, SELL. Why are you crying? Did you not get enough of the "after-math" from the home destruction and loss of life? Get real. Get over it. Do you not read the newspapers??? Homes here are soooo over-priced and they were selling. Commissions????? PLEEEZE! Give me a break. You made your money.
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July 20 2007
Profile picture for bankes
Mr. Daniels: I have a problem with your term "Market Trends". Are you actually an Agent here in the State of Florida?????? What part?

"Market Trends" refers to "Nike" . Market "disaster" is REALLY what your column is about. There is no "TREND" here in Florida. If you disagree, please provide a "trend report". This housing market is based on "HURRICANES". Not "Trends".
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July 20 2007
Profile picture for bankes
Mr Daniels,

Once again, I have a issue with your "real estate business" being compared to the "Stock Market Rush". How arrogant. You are not in the Fortune 500 Club. Could you not come up with a more similar analogy????? Please. I am a retired REALTOR and a very CURRENT INVESTOR IN THE STOCK MARKET. Soooo, please don't compare your job or your industry or your employment with SUCH!
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July 20 2007
Bankes,
Are you suffering from any personal issues? There is a time and place for everything, it seems that you`re having issues within.
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July 21 2007
I've heard there are fewer agents around here (either Washington as a whole or our local MLS--I don't remember) even though our market remains reasonably strong.

I wonder if it has something to do with the employment market in general?
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July 21 2007
Kris,
Thank you for your response.
Has new construction slowed as well?
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July 21 2007
I don't deal much in new construction, but I think the condo developers are getting a bit nervous.

Our sales overall are only down about 10% in volume, and median prices are actually up in most areas.
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July 21 2007
Profile picture for Jim DeCesaro
Real Estate Agent
Contributions: 42
At a recent seminar, the speaker stated last year NAR reported 100,000 less agents in 2006 and this year (2007) 300,000 to 400,000 are expected to call it quits.

Another statistic that I found interesting is that approximately 1 in 20 adults holds a RE License (not sure how many are actually "active").
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July 21 2007
We have been hearing a lot of discussion about this in the northeast - agents leaving the business. It does seem that there is something of a "cleanup" going on..
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July 23 2007
We`ve been able to assist the selelrs prior to foreclosure... So far this year we`ve saved 6 homeowners.
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July 25 2007
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Charlie Mader, "chasmader"

San Francisco, USA

Real Estate Agent

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Contributions: 333
I am all for the industry clean-up. Sales volume is down about 40% since it's peak two years ago. I am only to happy to see some thinning out of dead wood.
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July 25 2007
I wonder what kind of impact that would have where I am - in our town alone there are some 1,100 agents!
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July 25 2007
Chas,
Many boards will close down.. Can you say national MLS?
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July 26 2007
In Las Vegas around mid January we had about 18000 agents. By April the numbers droped to about 14500 agents. We are now back up to around 17000 agents again. The average is about 300 new agents per month. I would say that 80% of them have a full-time job outside of real estate. The new home market is down here. Most are giving 20 to 50,000 in options and have cut prices by 50,000+. The high-rise market is another thing. In 2006 Vegas had over 22,000 in sales (most won't record for another year or so). In 2004 everyone wanted to be a agent. Now that the market has changed and you have to really work, alot of agents have moved on to other jobs. When the market changes back I am sure all of the part-time agents will be back.
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July 27 2007
We`ve seen a shakeout. Make not mistake some left because the business of selling Real Estate isn`t paved in Gold, as many thought!
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July 28 2007
I look forward to the exodus, but I do love going against them for a listing; especially expireds. The owner's really appreciate my commitment to service and ability to sell.
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July 28 2007
It`s all based on professionalism. Many sellers realize this,some never will.
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July 30 2007
Don't forget integrity.
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July 30 2007
LJ,
You`re so right~
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August 03 2007
Not to toot my own horn, but that's also why I'll still be here next year!
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August 03 2007
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Charlie Mader, "chasmader"

San Francisco, USA

Real Estate Agent

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Contributions: 333
"Chas,
Many boards will close down.. Can you say national MLS? "

Bring it on! With a National or even State MLS, standards can only improve.
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August 08 2007
Profile picture for Alan May
Real Estate Agent
Contributions: 4051
Actually, Canada has a national MLS that works great.... run by realtors, the membership fee is much smaller, 'cause it's one site shared by the entire country
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August 08 2007
Point2homes.com has a national mls service as well...
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August 08 2007
Profile picture for Seattle Agent
Real Estate Agent
Contributions: 464
from awhile ago...New construction has REALLY slowed down. -In all price ranges. My friend works for Bennett homes and she says it is S-L-O-W.
I see them sit on the market a long time..and incentives are getting crazy. I saw a condo complex offering double SOC!
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August 08 2007
RP,
Over glut is a major problem. The absorbtion rate is very high!
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August 09 2007
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Charlie Mader, "chasmader"

San Francisco, USA

Real Estate Agent

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Contributions: 333
It's a great time to buy......
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August 09 2007
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Richard Federico

Clermont, Fl

Real Estate Agent
Contributions: 39
There will always be agents who enter the business expecting alot, but doing very little to make it happen. Then there are the few that will succeed in any market. There are many agents walking away in my area and I believe thats good. The tough, good agents will remain.
Amen to a national MLS and I hear one is in the works.
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August 09 2007
RF,
Thank you! I believeyou hit it on the nose...
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August 14 2007
Profile picture for elp2k
GREAT, i am glad to hear that, such great news!
Hopefully real estate agents and brokers will become an endangered species, and soon dissapear completely. But we will still have to deal with lenders.
Don't you people realize you are not liked by 80% of people out there?
And just to make sure you know the reasons...
Lenders manipulate brokers, brokers manipulate agents.
Lenders and brokers are mafia, they have monopolized the market of selling and buying homes.
The world would be a MUCH better place if there was a place like the MLS where any homeowner can post or look for a home for FREE and real estate lawyers could handle the paperwork.
I was hoping zillow.com was turning into such place, but since you people already found it attractive or a threat to your bussiness, it will soon be gone or converted to one more of the many places that are part of this huge monopoly.
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August 17 2007
elp,
How thoughtful.. What do you do for a living if we may ask?
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August 17 2007

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