If there’s one thing you can count on in the real estate market, it’s change—and if you want your firm to succeed long-term, it had better be able to change right along with it.
No one knows this better than the panelists who took part in RISMedia’s Power Broker Roundtable at the recent NAR Broker Summit. During the session “Above the Plateau: Strategies for Remaining Vital and Profitable,” leading brokers shared how they’re adapting their companies to meet the needs of fluctuating market conditions, shifting regulations, and a constantly evolving consumer.
Held at the Fairmont Grand Del Mar in San Diego, the panel was moderated by RISMedia President and CEO John Featherston and featured the following brokers:
Robert Bailey: Broker, Bailey Properties; Liaison for Large Residential Firms Relations, National Association of REALTORS®
Gretchen Pearson: President, Berkshire Hathaway HomeServices Drysdale Properties
David Romero: President & CEO, CENTURY 21 Award
Michael Golden: Co-founder, @properties
Keeping a Pulse on Market Conditions
Just as all real estate is local, so are many of the challenges facing today’s brokers. To consistently reach new levels of success, brokers must have a realistic and accurate read on their respective market conditions.
For Bailey, who runs a large regional firm in Santa Cruz, Calif., housing affordability tops the list. “Homeownership rates dropped nationally to 63 percent. Now in California, we’re sitting right below 54 percent,” shared Bailey. “One economist predicted that we would be a tenant state by 2020. That’s a challenge.”
Pearson, however, whose firm has more than 900 agents in 35 offices throughout California and Nevada, is bullish on market conditions. “Capital gains policy changes are going to loosen up inventory in California,” she said. “We need to stay in tune with these changes and educate clients who have postponed a real estate decision because of the economy.”
Romero also sees better market conditions on the horizon for his 1,000 agents in 14 offices serving southern California. “There is a lot of pent-up seller demand. I think it’s going to break this year.”
Adapting to the Environment
No matter what the pros and cons of a particular market may be, the key to success is adaptation. Bailey, for example, invested in a property management division to serve his region’s increasing rental population. This division doubles as a lead-generation system for agents since many renters eventually become homebuyers.
To combat a decreasing company dollar, Romero has made company-generated business a built-in part of his business model. “Company-generated business has a much higher profit margin than the rest of the business,” he explained, “and makes it much easier to direct business toward ancillary services, like mortgage and escrow.”
Pearson also made an effort to redirect agent expenditures back into the company. “How many agents pay Zillow for leads? We started on opportunities to create more leads and I started building different lead bases. We began a …read more
From:: Real Estate News