Look for More Consolidation in 2007 as Agents and Brokers Alike Find it Tougher to Compete

Agents have been dropping like flies, as well they should.  Look for more of the same as agents take other jobs in other fields of business.  We simply have an over-supply of agents who prospered in a strong sellers market but do not know how to properly price, negotiate, and market in a buyers market.  There’s just no substitute for skill, and experience.

One of the things you’ll see is brokerages either closing their doors, or being absorbed into another company.  Many times it makes good business sense to consolidate, as agencies can save duplication of advertising expenses, referral affiliation costs, building leases, and many other costs.  Most agents just want to sell real estate and leave the details of running a team or agency to someone else.

Mortgage brokers and title companies aren’t off the hook either.  Service has been detiorarting rapidly in the mortgage industry at a time when good service attracts more business.  Lousy brokers desperate to make loans are not being 100% truthful with customers and agents, and it reflects badly on them when they don’t get the loan done.  And of course it harms buyers and sellers when loan comittments are issued, but the loan never closes.  It puts the buyer’s escrow deposit in jeopardy, and leaves the sellers with a vacant home.

Recent word has approximately 2500 real estate agents not renewing in MLS.  The December 15 deadline was extended until January 8 in case a few agents caught up in lean times during the holidays wanted to renew.

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