Broke-Rage

Brokerage... Broker... Broke-Rage...

Brokerage Definition (Dictionary.com):

1. Broker's business; charges a fee to act as intermediary/arrange a contract between buyer and seller

2. A fee or commission paid to a broker.

Broke-Rage Definition (Cecilia Sherrard):

1. Real Estate or mortgage company upset with profit loss statements and a declining market.

2. An American consumer or home owner suffering from anger issues due to being "broker", making less, owning less or being worth less in this economy and real estate market.

Why are brokerages across the country going out of business and why is this a good thing? For some it could be related to greed and competition. Perhaps they're in a money hungry position or suffer from lackluster customer service. When the going gets tough... Yeah, maybe it's time for a thorough weeding of the industry...

Times have changed in many markets across the country when it comes to real estate and finance. Mortgage brokerages and real estate brokerages alike are seeing phases that maybe they're not ready for or have never seen before. Some can't adjust and don't know how to keep afloat when seas get rough.

It's been quite interesting watching the amount of agents come and go in my office and in the industry. I've seen some rage on the way out and disappointment with the way careers have crashed. Expectations have decreased and I see this as a bright beginning for not just the real estate industry but for the entire real estate market.

There's a group of Americans who are wallet broke, bank broke and house broke. Some can't afford the brokerage to step in because they're broke themselves. This is understandable and brokerages as business sad as they may be, must take all this into consideration if they want to keep up and stay around. We're needed and always have been. We just need to change with the times and tweak our roles. Consumers and clients need more than what we've been offering. They need creative work horses on their side who are experienced and ready for any market.

I received an email question that I wanted to share because I think it may just bring up a subject that needs to be discussed openly.

Cecilia,

I was reading your Ezine Article. It seems like with the booming house market in the recent years more and more real estate agents have cropped up. Do you think that the way the economy is headed some of the less "serious" real estate agents will be forced to find other careers? Do you feel that some of the more seasoned real estate agents will be forced to change their marketing habits?

Thanks,

Christy

I answered her with the following:

Hi Christy,

There's an old saying in real estate that 97% of the agents share 3% of the business and 3% of the agents share 97% of the business. I believe this saying is becoming more and more apparent in these changing markets. Yes, there was a real estate boom a few years back and many jumped on the wagon only to see it didn't go that far for them and they quickly jumped back off. I've seen many come and go in my office and area.

So many new agents or people considering a career in real estate view it as easy money. Get your license in no time and start raking in the checks. They think the business will somehow come to them and that they know enough people including themselves that they will do just fine in sales. Not so. It's a hard industry to keep up with and steadily succeed in. It takes long days and many ways in order to stay consistent or grow. I do see many falling behind and eventually leaving as it becomes harder and harder to maintain a steady stream of clients and sales.

In every market there are the top producers and many just by name are recognized and selected. A new agent really needs to focus, work a great strategy and marketing plan for themselves along with their clients. It's at times a difficult task. To answer your question, I think there will be less in the coming years but I also see this as a really good thing for the industry and public. I believe and always have that real estate agents should pay more in dues and be forced to take longer and harsher courses. I may not fit the norm with that opinion but what we do is a huge thing in most of our client's lives. Our reputation isn't always considered great since many of the agents who make mistakes or give us that reputation to begin with are squeaky new and not experienced enough or even worse, temporary. I think this new real estate market will weed out the weak and that makes for a stronger all around real estate industry.

Thanks for reading my article and I hope I've given you enough of my opinion to answer your questions.

Sincerely,

Cecilia Sherrard
Realty One Real Living
216-323-4620

So what do you think? Is it time for the NAR, (National Association of Realtors) to aggressively move toward a stronger industry and assist with this weeding out process? Should fees for Realtors be increased and tougher courses mandatory? It's a fact that most real estate brokerages profit the most on the newer agents as their split of their commission is greater. This is the main reason I believe for the mass acceptance and ease in obtaining a real estate license. If money is going to continue to hinder our reputation as real estate advocates, what will the future look like? If mortgage brokers are not held liable or even educated enough to guide consumers, where will the nightmare end with the mortgage mess?

While the current real estate situation isn't the fault of real estate professionals, surely they're/we're in the mix. Should consumers be educated more before borrowing or buying? Who is going to teach them? Are we left responsible for educating the nation since we're to blame for their agreeing to bad loans or bad purchases? What about a mandatory class or booklet that each consumer must agree to before moving forward with the process? I know I'd feel better and more confident working with others who understand more of what they're doing from a third party rather than solely from me. I love what I do and will probably always do this in whatever market we're in. I would like others to love this field and industry as much as I do. Broke-Rage is a two-sided street. We need crosswalks and yellow lights during rush hour. How do we get it?