Are St. Paul real estate agents checking out? Chris Galler, Senior Vice President of the Minnesota Association of REALTORS® is advocating that very thing both historically and once again this month. Normally whining is not my forte´, but the urge to whine is persistent when sales are slow (less income), real estate inventory is high (contributing to buyers shopping forever), sellers are slow to realize prices have dropped (tough listing presentation), and the senior VP of my own trade organization says agents who don't have 9 transactions a year are not professional? It could drive one to become a ranting raving maniac blogger!
An agent from one of the big local real estate companies and I were chatting in his open house. We were comparing marketing strategies. Did the internet produce leads or did paper ads? (Paper ads are yielding zero return for a big dip in the agent's pocket!) Why was he doing an open house? (To please the sellers.) Does he advertise his opens? (Not in the paper anymore as he's had more response from placing signs on the street and internet ads. Is anyone reading the paper in paper form anymore?)
The normal conversational progression led to whether agents are leaving the business. His response was interesting. In his office, he felt some real estate agents were "checking out".
"Oh, really," says I. "Do the membership numbers reflect that?"
Dropping their license was not the kind of "checking out" to which this agent was referring. His impression was that some agents have kept their license but have become discouraged and mentally left the business. They don't seem as committed to marketing for future business or marketing their current listings. They seem discouraged by the lack of sales and abundance of inventory and essentially have given up. What an interesting thought. Could there be some truth in it?
Carole, you're right about the "never been easy" part. It's only appears easy to outsiders!
Tom, I can't wait to see the REAL numbers at the end of the year. I also want to see the annual median price for our metro area. I'm suspecting it will be down as will membership numbers.
Posted by: Bonnie Erickson | September 27, 2007 at 10:43 PM
The proof in the pudding will be in December when dues are to be paid. In Houston, NAR,TAR,HAR, plus MLS dues must be paid by year end. We'll see.
Posted by: Thomas Johnson | September 27, 2007 at 12:17 PM
I believe there is truth in it, but it's like the chicken little approach to the market is failing; not quite as bad as the picture they paint? If historically only 20 percent of those in the business do their jobs in the most complete way, which includes following through on every aspect of a sale closing to marketing and having a solid business plan, then I would assume every year a percentage of people leave the business anyway. When real estate is in a year that is seen as the best thing since sliced bread the total numbers are up because some of the 80 percenters who dont do their jobs well no matter what they are doing get into it and think it's going to be easy money. It's never been easy money from what I can understand. At least not without putting out an effort! Thought provoking, Bonnie!
Posted by: Carole Cohen | September 27, 2007 at 10:42 AM