Industry News

Rethinking real estate business in a down cycle

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Over the next few years, real estate professionals will have to rethink how they do business as home sales ease from record levels and interest rates rise. Steve Ozonian, home-ownership executive for Bank of America, and HomeGain CEO Richard Sommer during an Inman News audio conference on Thursday discussed some of the upcoming changes for the real estate industry. Ozonian foresees a downward pressure on commissions, and predicts more broker consolidation than in the past few years. He believes the number of real estate agents also will drop as business declines. "Rates are going to cause everyone to hunker down and determine how they're going to run their companies in a very different market than what we've had over the last three years," Ozonian said. "If you're not seriously into the business and have not armed yourself with the right tools and working 10-, 12-hour days as most good agents do, you're not likely to make it through a tougher market where it's harder to get business,"...