Updated: Feb 20
“History doesn’t repeat itself, but it does rhyme,” said Mark Twain, which could easily apply to today’s real estate market. Experienced brokers are accustomed to the ups and downs of the industry. But it’s those brokers who have been around awhile who recognize there are unique opportunities available during the down markets. This is the final installment of a three-part series from my article featured in RealtyBizNews, examining the key areas brokers are focusing on to drive business growth opportunities in 2023. **The first area of focus was to increase the value of your brokerage to your agents versus the value that you are extracting from them. **The second is developing an ongoing recruiting strategy which is vitally important for growing your firm in a faltering economy. **The third is shifting your focus to become a listing brokerage. Brokers and agents are agonizing the shortage of listings because they drive the business. When you have the inventory, you have predictability and every agent in the MLS works for you.
When I meet with brokers, the first data I review is their listing volume, listings-to-sell ratio and sold prices and these numbers tell a lot about the health of the brokerage and the agents. The problem is that listings are a challenge for most agents. Pre-internet, buyers came to agents to find a home, but now buyers often find the home online first… then they seek out the agent. But on the listing side, agents generally must find the sellers to get those listings and that is a challenge for many. Working the buyer side is much easier and it’s the path most agents, particularly newer ones, prefer to follow because the listing process requires much more work and greater skills. This is the time to focus your company and agents on activities that lead to those listings. Agent prospecting activity is vital. They may not like prospecting, but agents must do it to be successful and reach their goals. The top brokers leading your local market are teaching and driving their agents to become primarily listing-focused. They are getting those coveted listings and winning the war at the kitchen table. As the broker, shifting to a listing-focused firm provides rewards that are greater for all. There is much more stability for the agents and the brokerage. It also has a powerful impact on your recruiting and retention because agents go where they know they can get the listings. Remember – “those who control the listings control the market.” As we look ahead to 2023 and beyond, much of the industry will be rhyming with the past but many brokers are making the preparations to create their own version of a new history.