Brokerages are finding it tough to attract younger agents
According to the 2013 Imprev Thought Leader Survey, recruiting younger real estate agents is the top challenge for survey respondents comprised of top real estate executives at leading franchises and independent brokerage firms responsible for nearly one in three residential real estate transactions last year.
In an improving market, agents and brokers are increasingly busy which respondents indicate is a challenge not only because their time is restricted, but because top talent they seek to convert has become too busy to even discuss the possibility of switching brokerages.
Veterans aren’t aging out of the industry
Imprev notes that “the aging of the real estate workforce has been well documented,” citing National Association of REALTORS® data which reveals that the average real estate agent is 57 years old, though the average American worker is 41 and the typical age of a first-time buyer is 31.
“Over the last five years the average age of real estate agents has almost moved in lock-step with the calendar,” which is also supported by NAR research, said Imprev CEO, Renwick Congdon.
Research indicates that veteran agents are opting out of retirement and are unlikely to switch firms, leaving firms struggling to attract top producers, particularly veterans.
Why the need for agents?
When new talent isn’t coming in, brokerages’ bottom line is impacted. Imprev’s study found that the biggest obstacle to profitability is the need for more agents, even more than the physical space costs and commission splits.
While these challenges remain, one in three respondents cite too few quality prospects as one of their biggest recruiting challenges, indicating a talent gap in the industry.
Other highlights from the Imprev Thought Leader Survey:
According to Imprev:
- Competitive challenges: Nearly half (49 percent) cited competitors offering “a better commission split,” followed by competitors offering lower costs for affiliation
- (46 percent); having more market share (23 percent); offering signing bonuses (22 percent); and providing more leads to agents (21 percent). Trailing those concerns were: offering more marketing support (16 percent); having better brand recognition (14 percent); and providing better technology (10 percent).
- Profitability challenges: Other profitability challenges the executives said they face included support-staff costs (31 percent); the “impact of discount brokers” (22 percent); and technology costs (18 percent). Fewer than one in 10 executives (9 percent) cited “benefit costs” as a top profitability concern.
- More recruiting challenges: The No. 2 recruiting challenge the executives face is not able to find enough time to recruit (44 percent). Respondents also cited an inability to get their teams to help recruit (28 percent) and finding “prospects that fit your culture” (27 percent) as other significant recruiting challenges.