Headlines scream disaster… foreclosures, bankruptcies, tight credit, lower real estate values, and volume. In the meantime, the modern world continues to move at a dizzying pace. Among many other things, social media, video, web 2.0, and mobile technology have forced dramatic changes in many industries. The real estate brokerage industry has not just been affected, it has been hit between the eyes and has forced many brokers and managers into a state of confusion… or worse.
The industry has spent the last 12 – 18 months cutting expenses and hoping for things to get better. As much as those budget cuts may have given new life to many, they have still not dealt helped brokers and managers reinvent themselves, their agents, and their companies. Eliminating overhead does not create new listings… closing offices does not help recruit new agents… only accepting the new paradigm and moving towards it will result in sustainable profitability in the years to come.
As many parts of the country start emerging from the downward spiral, the realization is that the market will not just “bounce back” as it may have in the past. Conventional wisdom states that there will be a 12 – 24 month period where numbers will remain relatively flat. The broker who recognizes this and starts the process of reinventing their company will be the broker who will emerge stronger, more profitable, and more relevant to the agents and consumers of the future.