Comments on: Where the Next REALTORS will be Found

By: Geri Kenyon

Geri Kenyon — Sun, 14 Jun 2009 17:02:45 +0000

Michael, reverse this to “where will a Realtor find companies embracing
technology and systems” to consider as an employer?

By: Susie Blackmon

Susie Blackmon — Sat, 28 Mar 2009 23:01:59 +0000

This isn’t our parents’ real estate industry any more. The next generation isn’t going to tolerate being treated like they are stupid, and neither are they going to want to come see their realtor-in-a-box. Realtors are going to have to work hard and stay up with technology to be successful, and companies will need to look for quality agents rather than quantity. Interesting concept of hiring FSBO’s — most of the ones I have spoken to don’t want to ever sell a house again!

By: Joe Marovich

Joe Marovich — Sat, 28 Mar 2009 15:45:30 +0000

Great thread Matt. A few things occurred to me in reading. Who priced the fsbo house? Would the price received be equal or better than if the home had been exposed to the larger buyer pool? How many buyers were left out because the house couldn’t be shown during hours when the husband was working? (I say husband because most men wouldn’t allow a stranger to visit their home when only their wife was home). Would more and different types of marketing produce more ready, willing, and able buyers thereby creating competition for the home? Your bolded DOM and List to Sell Ratios are based upon the perception of the homeowner that they made a good deal. It’s doubtful whether they’d say they didn’t make a good deal. Just some extra thinking aloud.

By: Matthew Ferrara

Matthew Ferrara — Tue, 17 Mar 2009 22:37:32 +0000

Roy:
I think you’re on to something. While I’d like to say “higher level” of service, maybe we should just start saying “TOTALLY DIFFERENT SERVICE” will be needed. Real estate is learning that “what” the consumer wants to pay for is DIFFERENT.

Remember that today’s industry was made BY Baby Boomers FOR Baby Boomers. Once Gen X and Y dominate sales/purchases, WHAT we sell will have to be totally different.

Thanks for the comments!

By: Roy Sanborn

Roy Sanborn — Tue, 17 Mar 2009 18:07:54 +0000

Hey Matt, this reminds me of your earlier blog relative to unassisted showings. With the increasing success rate of FSBO’s and their ability to avail themselves of all the tools necessary to get their property marketed across the country it seems that the role of agents as we know it could eventually be eliminated. I never understood what a listing agent that doesn’t show their listing actually does to earn the level of commission asked for. An even higher level of service is going to be required in order to make us viable and necessary to home sellers in the future.

By: Matthew Ferrara

Matthew Ferrara — Tue, 17 Mar 2009 14:36:36 +0000

Sean:

You hit the nail on the head: ALL performance problems in a company are ultimately the responsibility of “management” – so if “managers” are performing poorly, then it’s THEIR management (Senior Leadership) that needs to re-evaluate their plans, directives, goals, etc.

No other industry turns people over as much as we do in real estate. If that’s not the single most glowing indicator that the “so-called” system of real estate is broken today, then let’s at least stop blaming the consumer for all of our ills.

Thanks for your comments; I really appreciate them!
Matthew

By: Matthew Ferrara

Matthew Ferrara — Sun, 15 Mar 2009 12:55:04 +0000

John:

An award for least-amount-of-expireds is a very clever idea! Very interesting.

We could also just try what NORMAL companies do: They purchase their inventory UP FRONT, then mark it up appropriately, then resell it. Walmart purchases toothpaste at a “seller” price, then reprices it to the “buyer price” and resells it.

Imagine if brokers had to BUY their listings first, sans the commission fee, then add their commission when offering it to buyers. (And let’s be honest: The buyer pays the fee, right?)

Talk about accountable pricing then…. it would change everything.

Thanks for your comments and stopping by!

By: Sean Carpenter

Sean Carpenter — Sat, 14 Mar 2009 23:26:54 +0000

Matt,

Great post. Your thought hit on the never ending belief that “recruiting cures all ills.” Managers get pounded by Senior Leadership to recruit, recruit, recruit and they do. They end up lowering their standards and sign up part time agents who have grand illusions of going full time once they have earned enough to replace their current salary. Ah, but there’s the rub – Iif an agent figures out a way to earn enough GCI to equal what they are making at a salaried positions, this person would, in effect, have doubled their income and kept the same benefits they started with. Why would they leave either job?

So by hiring someone…anyone…the manager will displace the constant pressure” from above for at least a few more weeks/months until it’s time for another recruiting push.

The “circle” comes into play when the recruits flounder and do not find ANY success but if the manager sends their license back to the state, then the office numbers will drop and all of a sudden, they will be on the radar for a recruiting initiative. So instead, they just keep the rosters full, figuring that the 80/20 will separate the 1st quartile from the 4th quartile.

By: John Grasty

John Grasty — Sat, 14 Mar 2009 21:49:53 +0000

Excerpt: “If there are overpriced homes that aren

By: Matthew Ferrara

Matthew Ferrara — Sat, 14 Mar 2009 15:30:18 +0000

Thanks, Jim; When I saw the stats on FSBO sales, it just occurred to me that – compared to some of the agents sitting around some offices – we had some ready-made replacements….

Thanks for stopping by the blog!

By: Jim Flanagan

Jim Flanagan — Sat, 14 Mar 2009 01:13:49 +0000

Matthew,

Once again, a thought provoking hypothesis! Too bad most of the successful FSBOs in new Jersey are moving out of state. Perhaps I could get a few referrals?