How Many Agents Will There Be In Salt Lake Next Year
September 28th, 2008 Categories: Real Estate News
How Many Agents Will There Be In Salt Lake Next Year
The question is how many agents will still be in business next year. Some people are speculating that we will lose 20-25% of the agents. We kind of expected 20% last year but didn’t quite lose that many. If you look at last year’s volume Sep was the first real drop and then Oct wasn’t too bad. So the momentum of the market carried a lot of agents to still have an active license. However the year we had could not support that many agents.
What is in play now is The Law Of Equilibrium. When the market was hot people were drawn to it like flies on you know what. Know that the markets are not so hot agents are disappearing faster than a six pack at frat house.
There is a period after the market shifts where there are more agents than the market can handle survive period. Then the market will equal out and then those that are running smart businesses will actually do really well.
I overheard an agent the other day. The agent said he was on the phone talking to someone that called in on an ad, the prospect said they had an agent. He asked oh, where do they work? We chuckle at that, but it is true there are a lot of agents that are not earning any money and are working full time jobs outside of the industry.
So as consumers please ask your agent are you a Realtor, a whole Realtor and nothing but a Realtor so help me?
Below is a chart that describes the law of equilibrium. It is from Gary Keller’s latest book “Shift”.
When interviewing an agent you need to ask a lot of questions. Remember two thirds of all the real estate agents got their license in the last five years. That means two thirds of all agents do not have the experience that you need. Then there is the other side. Then there is the issue of the agents that have been around for a long time. Do have the technology and the tech skills you need and deserve?
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Rob,
You make some great points about existing agents and what the market can bear. I have a little more than 5 years in the industry now and honestly think that learning to survive the tough times has made me a better agent. I have worked to learn all I can about how to use technology – not only for me but for my clients. I have also learned to appreciate ALL my clients, whether buyers, sellers or renters. That appreciation is paying off in spades and I am now busier than ever. Sure, it’s been hard but I can;t imagine doing anything else – I love my work.
Michael
Hello Fellow KW Agent…thought that graph looked familiar. Have you been able to see Gary Keller on the SHIFT tour? We saw him in Columbus, OH a couple of weeks ago and it was awesome!!! Take care Rob!
Awesome blog mate, defnitely some great information here and well written. I keep trying to build a following to my blog on the amazing results I have had with resveratrol.