What Realtors Do Not Want

What kind of work environment do Realtors want today?  Or perhaps the question is better asked, what kind of brokerage do Realtors want to work for in this new world of advanced technology and the Internet?  The following is from Chuck Marunde’s book, The New World of Marketing for Real Estate Agents, 2nd Edition.

The traditional real estate brokerage model going back 30 years has operated with certain assumptions and general practices. The traditional brokerage looks like this:

It has a beautiful large bricks-and-mortar building with massive overhead.It has many agents with the top producers having their own offices with windows.

The majority of agents have cubicles in the center of the building.

The brokers take 50% of the agents’ commissions, although competition has been pushing this split up for agents. This is one of the reasons brokers’ profits are disappearing.

In addition to the broker’s share of the commissions, brokers also charge a variety of fees to their agents, including corporate management fees, franchise fees, transaction fees, advertising fees, copy machine fees, long distance telephone charges, and technology or Internet service fees.

The agents also have many subscription fees, fixed and variable expenses, as do brokers.

The brokers typically use traditional media advertising, including expensive print newspapers, magazines, and even billboards–all very expensive advertising.

Running the brokerage is a business in itself, and as such it has its own profit model, which means that a brokerage makes money from its agents. This pits the interests of the brokerage against the interests of the agents and against the interests of the clients. In other words, for a traditional brokerage, the center of the Universe is the brokerage itself, not the agents or the clients. Brokers can deny this until they’re blue in the face, but look to the substance, not the appearance.

The vast majority of agents around the country have been complaining about the same short comings of brokerages for decades, which primarily includes several complaints. For example, the broker:

keeps too much of their commissions; has too many nickel and dime charges; does not do all the promised training and mentoring; does not create an exciting and motivational environment for agents; does not spend much money, if any, on helping individual agents develop business by getting more listings and more buyers; does not provide cutting edge teaching for future business development; does not provide the technology and training necessary; does not provide integrated customer relationship management systems; and does not provide help with software and hardware to bridge the gap to the Internet.

Not only do agents get the short end of the bargain, but ultimately consumers are not best served anymore with the traditional brokerage model. Consumers themselves are sending a huge message to traditional brokers by not calling their offices, by not walking in the front doors anymore, and by not calling off their newspaper and magazine ads. Consumers have moved on.

So what do Realtors want?  What kind of brokerage model do they want?  Read the article entitled What Do Realtors Want?

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