Focus on Need, Not Greed: Why Now is the Time to Expand Your Real Estate Business
With a resurgent demand for housing comes a newly urgent need: real estate agents and
If you’re an agent or broker who suffered through the housing crash of 2007, the last thing on your mind might be expanding your office. Wouldn’t it be better to handle the increased traffic — and keep the profits — yourself?
It’s essential that you grow your business now. If you’re too busy to handle even a single call or prospect, the leads will go elsewhere, and leads generated by those leads will also go elsewhere. And, instead of having too much business, you’ll have too little — and your sales will drop despite the escalating opportunities in the market.
North American Housing Market Numbers
Existing home sales jumped by more than 4 percent between March 15 and April 15, according to the National Home Sales Snapshot report, and the prices of homes increased by an average of $4,000 two weeks in a row. In March, home sales in Canada rose 2.4 percent in March, with sales in Vancouver rising 10.9 percent compared to February, according to a statement released April 15 by the Canadian Real Estate Association.
Where to turn when launching your recruitment efforts? Although real estate agent has traditionally been a second career, it makes more sense for your firm to seek younger prospects.
Here are 4 reasons to aim your recruitment efforts at for people younger than 30:
1. Demand Outpaces Supply
The average age of a realtor is 56, according to the National Association of Realtors. And there aren’t enough millennials — persons born between 1982 and 2002 — to fill the gap when older agents and brokers retire. If you don’t snap up some young people now, there might not be a pool to draw from later, according to a report from ERA:
“The primary issue confronting many brokers across the country is how to attract dynamic, technologically savvy young adults to an industry traditionally known as a ‘retirement career’ or the ‘housewives’ job,’ especially when that career has low barriers to entry and a largely commission-based compensation structure.”
2. Younger people have better Internet marketing skills.
You don’t have to teach young adults how to market themselves using social media and other digital tools About 93 percent of Millennials use the Internet daily, and more than half of the blogging population is aged 21 to 35, according to the ERA report.
Younger adults are also more likely to embrace new technology, including lead-generating software and property search apps. They naturally look for ways to streamline their efforts with time-saving and money-producing devices. And they are savvy about trends — they don’t wait for marketing experts to tell them whether channels such as Facebook are on the rise or decline. They just know.
3. The Y Generation is Entrepreneurial
The first of the Millennials graduated from college just as the Great Recession started. They didn’t enjoy the comfort — or complacency — of guaranteed jobs.
Those who didn’t give up — didn’t move back in with their parents or resign themselves to becoming degree-carrying burger flippers — learned quickly to rely on themselves rather than an employer for income.
They have the entrepreneurial temperament to make hungry, aggressive — and successful — real estate agents and brokers.
4. Young agents make top sellers.
Young brokers are making headlines for breaking sales records.
At age 24, Oren Alexander sold a Miami home for $47 million, and in 2011, 34-year-old Kyle Blackman sold a Central Park penthouse for $88 million, the largest private home sale in Manhattan, according to the Wall Street Journal. A 29-year-old sold a $44 million property and a 27-year-old sold a $6.3 million home.
Ambitious young adults are attracted to the earnings potential in real estate and willing to work hard to achieve it. One in four agents at Prudential Douglas Elliman in New York is under 30, compared to 1 in 10 just 5 years ago.
“Its pretty hard for young people to get decent-paying jobs, while in real estate you can make $200,000 to $300,000 in the first year or two,” Yuval Greenblatt, an executive vice president at Douglas Elliman, told WSJ.
Share the Wealth
Grow your team now while the options are plentiful. Make room in your real estate company for new salespeople. And look to a new generation of agents and brokers to expand your company and multiply your profits.