Pulse is a recurring column where we ask for readers’ takes on varying topics in a weekly survey and report back with our findings.
The pandemic and lawsuits have made for an interesting real estate environment, to say the very least. Consumers expecting instant gratification, iBuyers, the ever-evolving real estate landscape, commission compression, recruiting and retention woes — indie brokers certainly have their work cut out for them.
Last week, we asked readers: What do you think the biggest threat to independent brokerages is in 2022? Here’s what you had to say:
- Not having solutions for sellers and buyers that deep pockets can solve and are solving.
- Their own complacency. Being an indie means you need to be nimble, informed, and able to adapt; if indie leaders aren’t paying attention and adjusting to the changing industry landscape they will be in trouble.
- Amazon.
- Inability to compete with large box companies buying talent.
- Companies that offer revenue share and stocks. You just can’t compete with that.
- Profit share companies.
- The limited access to a global network of inventory and buyers.
- New virtual models.
- Competing against companies that don’t need to turn a profit.
- Nothing more than big brokerages will endure. Actually, less [because there are] more savvy brokers and Realtors at an indie brokerage. Big brokerages have more to worry about.
- Independent brokerages of a small size will have tremendous difficulty providing sufficient research, monitoring, and dissemination of their legal responsibilities to their agents due to commission compression.
- The recruiting tactics of offering huge signing bonuses and throwing money around to lure agents away is a big threat. We see it here with our same brand corporate competitor.
- Perception shifts that they can’t compete.
- Mortgage lenders going direct to the consumers and iBuyers creating brokerages.
- The brokers themselves.
- Obtaining leads.
- Most offices have very little technology.
- Managing uncertainty and maintaining morale will be the greatest challenges that indies will face in 2022. Simply put, the real estate industry is at the crux and mercy of our ever-evolving economy. Indie brokers will need to need draw on reserves of optimism to remain pragmatic in the face of the unknown. What’s more, the task of invigorating the team is also of mass importance to those who will succeed in the coming year. Office culture has emerged as a key component of attracting new agents and retaining great ones. In short, the strength of leadership will determine the destiny of the indies in 2022.
Editor’s note: These responses have been edited lightly for style and grammar.
Please add your 2 cents in the comments section below.