As with any type of market slowdown, Realtor firms are trying to do more with less. They are doing everything they can to use their resources wisely and make smart administrative decisions.
“I think all companies have gone into just good business practices and are looking at everything that they are doing to make sure they are seeing a good return on their investment,” said NEFAR’s Glenn East. “If they are not seeing a good return on their investment then they are probably going to cut that investment out or trimming down. Many people are trim down their marketing budget.”
Coldwell Banker Walter Williams Realty has closed four offices. But, owner Walter Williams said he is trying to add to the company in other ways.
“We are talking to a number of companies about merging,” said Williams. “We’ve already merged with Lifestyles Realtors and we just recently merged with a couple of other smaller companies.”
Williams said his company is evolving with the market by realizing that customers search the Internet first before ever stepping foot out of their house. He encourages his agents to becoming more Internet savvy and to use their marketing dollars wisely.
There’s also more pressure on those who remain. Brokers are not being as tolerant of agents who do not contribute or work hard in this market.
“Working at a real estate company is not like being at a buffet table,” said Carlene McDuffie of Palm III Realty. “You have to bring a covered dish and contribute to make the meal satisfying for everyone. With fewer Realtors, each and every Realtor needs to be working their farm area. They need to be making phone calls, sending postcards, knocking on doors and being active. If they are on floor duty, they need to actively pursue leads and make good use of that time because it’s not only their time it’s the companies time the are wasting if they don’t.”
Smaller company’s haven’t seem to feel the market change as much.
“I still think we are overrun with Realtors,” said Lee Norville of Norville Realty. “I think I would notice it more if it were successful agents getting out. The ones that are going away were kind of invisible anyway. Knock on wood, we’ve lost none. The established successful agents are still there and the other ones, most of them, I probably never knew they existed.”
Another small company broker agreed.
“I can’t say I’ve noticed any significant changes in my real estate business due to the decline in Realtor membership,” said Elke McMenemy, owner of St. Augustine Real Estate. “I’m speculating that maybe those who left the business were putting money out but not taking any in, so that their presence had little or no impact on the rest of us to begin with.”
For some brokers, fewer Realtors bring problems and blessings.
“There have been a few negatives that have affected our industry with the reduction of agents or the increase in part-time agents,” said Stanley Bishop of Exit Real Estate Gallery. “The negatives are that it is harder to reach part-time agents who have other responsibilities and cannot address their real estate business in a timely manner. The positives for the full time agents is there are less competition and the agents who are working are finding more business then even three months ago.”
The part-time agent syndrome has seemed to catch on in other companies as well, and at the expense of their real estate business.
“As a broker, I am seeing a lot of agents across the board becoming frustrated and taking on second jobs just so they can hang on financially and stay in the business of real estate,” said Kim Davis, owner and broker of Ponte Vedra Beach Realty. “What that means, however, is that their time becomes less for doing the things they need to do to be successful in real estate, like prospecting and marketing. They then become so frustrated, they just leave the business.”
Davis said it’s definitely a time for survival of the fittest.
“We must get back to basics, taking care of our customers by continuing to give excellent customer service, prospect, which is the basis of real estate and going out and marketing listings that are priced right,” said Davis. “But in the midst of the current market, some agents are having their best year ever. It’s all about mindset. The reality is that the market has changed. Where there’s change, there’s opportunity. And what I tell our associates is that they have to be committed long term and adapt to the market change to be successful.”
Gene Jones, president of ERA Dan Jones & Associates, said he hopes a lot more get out.
“We have had too many Realtors get into the business that do not have the education or ethics to be in this profession,” said Jones.
— Michele Newbern Gillis