OpinionBrokerage

What will it take for brokerages to survive in the future?

No one is celebrating making it through the downturn
  • Profitability at real estate brokerages is declining, and this downward trend will continue indefinitely.
  • To survive, brokerages must stay hyper-focused on recruiting, recruiting and recruiting.
  • In successfully recruiting the right agents, culture, technology and marketing support trump commission splits.

Profitability at real estate brokerages is declining, and this downward trend will continue indefinitely; to survive, brokerages must stay hyper-focused on recruiting, recruiting and recruiting. In successfully recruiting the right agents, culture, technology and marketing support trump commission splits. The national real estate picture continues to improve, and brokerage owners who have suffered through the past nine years and, more importantly, the ones who have survived, should be ready to rejoice. Many of the brokerages who have gone through the downturn and have come out the other side in one piece are reporting record sales volume. Interest rates are at near historic lows, the stock market is near record highs, and sale prices are increasing in many national markets. However, there are no sounds of champagne popping in the owners' offices. The celebratory cheers have been replaced with the looming fear of the inevitable disaster just around the corner. If everyth...