But, my broker doesn't allow. . .

There is no question that with the computer literate buyer of the future ,and the vast amount of listing and GIS information available -it could significantly change.

Unlike residential , the land and commercial side may not be affected as much due to the fact that most buyers do not have or are not skilled enough to get pertinent information .

In the early 80's when interest rates on homes was 16% fixed and 22% prime , we had a lot of attrition in licensees like today.As a broker/owner of a firm with 50 agents we decided to try a salary plus system and it failed big time for the same reason it may not work today.

The top producers with years of experience will survive and continue to do 80% or more of the business without having to drastically reduce fees for the valueable services they provide.

Listing has and always will be the name of the game among top producers.

Most buyer's agents are not listers and most are less experienced than the pros .

What the industry needs is a major thinning of the ranks which should occur before the end of 2009.

I specialize in land acquisition and sales which is difficult now because of banks .Good agents with experience generally save for rainy days whereas MOST AGENTS live month to month.

The real money in real estate is not in brokerage -it is in investing for the future and selling when the economic conditions are right.This investment end will survive our current bad times and come out smelling like a rose by 2,011.

AGENTS OF THE FUTURE NEED TO INVEST IN THEMSELVES(constant education-social marketing avenues) AND INTO THE PRODUCTS THAT THEY SELL

Hi Jack,

I read your post and wished to respond with a little of what my company does. We are not a "traditional" Brick & Mortar since we are a newer national company that is growing leaps and bounds due to the structure and stradegies so, as agents, we are allowed much more leeway in what we can and can't do.

1. Does the real estate business model need to change?

Overall, I believe YES absolutely. It should be based like any other profession where the professional gets paid up front or for the job performed. If we, as agents, received a amount upfront for the marketing of their home, it could be reimbursed at close or if te transaction doesn't close, you are at least compensated for a bit of your marketing costs.

2. What would those changes look like?

That is one suggestion -- I'm sure there are many other suggestions and ideas.

Terry

Jack,

If I go work for Chevrolet, I would be foolish to ask, Why don't You Sell Fords? That is the same thing you are asking here. You work for a Full Service (Traditional) brokerage and you are wondering why they do not operated like Menu or Limited Service Companies.

There is a Business Model for everything today. Your Broker choose a Traditional Model as that was what they liked and must be doing well with. If you want to work for a different type of business model, they are out there. Go interview at other brokerages and join one that more closely matches your ideals.

If there is a not another type of Real Estate Business Model in your community, then maybe you need to bring one it.

St. Lawrence Properties says:

If I go work for Chevrolet, I would be foolish to ask, Why don't You Sell Fords? That is the same thing you are asking here. You work for a Full Service (Traditional) brokerage and you are wondering why they do not operated like Menu or Limited Service Companies.

There is a Business Model for everything today. Your Broker choose a Traditional Model as that was what they liked and must be doing well with. If you want to work for a different type of business model, they are out there. Go interview at other brokerages and join one that more closely matches your ideals.

If there is a not another type of Real Estate Business Model in your community, then maybe you need to bring one it.

Jack Replies:

Actually, this is not at all what I am asking. Please note, I am my broker and I have created a comany that offers the newer busines models, so your suggestions do not apply here.

What I am asking is pretty clear in the original message:

1. Does the model need to change?

2. What would those changes look like

3. What would your ideal brokerage look like?

I don't wish to be argumentative, but I do want to keep this discussion on track. I would really like some of you to feed back to the group the answers to these three questions.

I am wondering where you got the idea that I work for a full service brokerage and I am foolish to want it to operate like a menu or LSDB company. This was never even part of the discussion.

Regards

JH

Hi Jack,

I would love to answer your questions since I've done real estate consultinf for over 10 yrs.

#1 Does the model need to change?

Yes and no. Options should be given based on the needs of the client.

#2:What would those changes look like?
Options! You can do risk vs reward. High commission with no risk or low price with some risk.

#3:what would my ideal brokerage look like?
Give the people what the want, oherwise, the will go somewhere else where they can get it. The ideal brokerage just in my opinion would be to offer traditional comm or consulting. There are many cliens out there who can do their own web sites, flyers, etc. . . what they cAN'T do is go on the MLS where most of the buyers are. I can put someone on my web site, 30 different web sites and sell there house. The main thing people need to consider are OPTIONS. If one thing isn't working, go to plan B.

Hope this helps!

oh, I forgot to add this tidbit...in the near future, unless Brokers change their models, they will be extinct.

With more agents spending more money and working from home, why do we need a broker that gets part of our money?

Having said that, if the broker model changed to my advantage, I would re-think that.

Brokers are going to be a thing of he past imho in the next few yrs... agents have no need for them, work from home, pay all your expenses and give brokers part of your money........for what?

Brokers need to learn the consulting model and embrace it because if they do not, they will go the way of the dinosaurs. I don't need an office....I can meet people over lunch or at Starbucks.

I have email, I have webinar, I have everything I need to make a deal happen, so what does the broker bring to the table?

Quoting Paula Bean:

oh, I forgot to add this tidbit...in the near future, unless Brokers change their models, they will be extinct.

With more agents spending more money and working from home, why do we need a broker that gets part of our money?

Having said that, if the broker model changed to my advantage, I would re-think that.

Brokers are going to be a thing of he past imho in the next few yrs... agents have no need for them, work from home, pay all your expenses and give brokers part of your money........for what?

Brokers need to learn the consulting model and embrace it because if they do not, they will go the way of the dinosaurs. I don't need an office....I can meet people over lunch or at Starbucks.

I have email, I have webinar, I have everything I need to make a deal happen, so what does the broker bring to the table?

Jack Says:

Interesting point of view. WHat do others feel about this?

JH

Jack and Paula,

The reason there are brokers is that it's the law in many states. It's that simple. With the internet and social networking, it's easier for agents to work outside of the office and without direct supervision of the broker, but that generally is not the proper relationship.

Steve

Quoting Steve Hoffacker:

Jack and Paula,

The reason there are brokers is that it's the law in many states. It's that simple. With the internet and social networking, it's easier for agents to work outside of the office and without direct supervision of the broker, but that generally is not the proper relationship.

Steve

Jack responds:

Steve, you and I agree completely. Didn't want you to think I support Paula's position. I just noted that it is interesting.

As a broker/owner, in the state of California, I am well aware that supporting and oversight of my agents is not just the right thing to do - it is the law. Many states have similar requirements of the managing broker or broker of record. Some will not even allow a broker to have a "virtual" office, as opposed to a brick and mortar location where this agent supervision is supposed to take place.

Driving back to the original three questions (I will keep doing this for a short time, knowing that all group discussions will tend to drift, and that is a good thing):

1. Does the real estate business model need to change?

2. What would those changes look like?

3. What would your ideal brokerage look like? What types of benefits, business structures, compensation and the like would appeal to you?

Best regards,

JackH