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Real estate firms struggling to attract younger agents

In an improving market, not only are brokerages struggling to find time to recruit, the top challenge according to one study is attracting younger agents in an aging industry.

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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.

Tara Steele is the News Director at The American Genius, covering entrepreneur, real estate, technology news and everything in between. If you'd like to reach Tara with a question, comment, press release or hot news tip, simply click the link below.

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2 Comments

2 Comments

  1. CJ Johhnson

    July 8, 2013 at 8:42 am

    Our industry is focused on the wrong demographic for new agents. People over 50 are the best untapped workforce for our industry. Many of them have grown children not needing time off for parenting, are not pressured by needing to make a steady pay check due to pensions from prior occupations, and are actually grateful to have a job that does not discriminate due to their age. The Boomers and above group 47-67 fit into our demographic perfectly and want to work every day if for no other reason to have a place to socialize and be useful which is how many of us prospect in the first place.. Anyone can be taught technology but experience is something earned over time. More patient, better focused, can accept failure and move on because they have done so in many areas of real life, etc. When I entered the business 23 years ago most of my mentors and brokers were 50, 60, and even 70 years old. They were treated with respect and we watched their every move so we could emulate their success. The above study revealed that these new young guns recruiters were concerned with “(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)” What they failed to mention was the need for training and a business plan to carry them through the ups and downs of a challenging and rewarding industry which is why 80% of their new agents fail in the first 18 months. Change your focus to train and retain rather than having to constantly be recruiting might be a better plan. Add to that more focus on the not so “old” generation and you just might find yourselves with a long range plan and profitable business model.

  2. Pingback: RE Buzz - Real Estate News Roundup - July 16, 2013 - spake.com

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Finally the American workforce is now mostly women!

(BUSINESS NEWS) Women officially make up more than half the workforce, but that doesn’t mean total equality. So what does this tipping of the scale mean?

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Equality for women has finally been achieved: according to the Bureau of Labor Statistics, women now make up more than half of the workforce! That’s it, that’s the article.

Kidding. Just because women are currently in the majority doesn’t mean all their problems are solved.

First, it’s worth noting that although women currently make up more than half of employees on payroll, that number is slight (50.04% to be exact). Not to mention, women are very likely to fall back in the minority once construction – a male dominated profession – picks back up in the spring.

Still, the number of women in the workforce has been growing over the last decade. While jobs in manufacturing – another male dominated field – are dwindling, jobs in education and healthcare are growing. When it comes to K-12 teaching, for example, women are more likely to fill teaching roles. Women also dominate in nursing.

Not to mention, women are earning more degrees than men!

That said, despite this progress, women as a whole are still getting paid less than men. Part of the reason lies in the types of careers that women end up in. Those female-dominated fields we mentioned earlier? They don’t typically pay well. Plus, there’s that pesky glass ceiling that still exists in some fields. Remember, there are more CEOs named John than female CEOs.

It’s also worth noting that the information collected by the Bureau of Labor Statistics only covered people on a payroll. That means the growing number of freelancers aren’t being accounted for in the report. Freelancing has become a great way for individuals, often women, to stay home and care for their family while also earning money. It would be interesting to know how freelancers shift the balance, both in employment and income.

Finally, there’s the invisible labor that women often contribute to society. According to the UN, women account for 75% of all unpaid labor – which includes things like childcare, meal prep and cleaning. This is vital labor that is not accounted for by studies like that of the Bureau of Labor Statistics and sheds light into another reason why women might still have lower pay than men, on average.

So, yes, the fact that women make up over half the workforce is something to be celebrated! That said, we’ve still got work to do on the equality front.

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Interview escape plan 101: Because you definitely need one

(BUSINESS NEWS) A job interview should be a place to ask about qualifications but it seems more people are asked about their personal life. How do you escape this problem?

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“So, why did you move from Utah to Austin?” the interviewer asked over the phone.

The question felt a little out of place in the job interview, but I gave my standard answer about wanting a fresh scene. I’d just graduated college and was looking to break into the Austin market. But the interviewer wasn’t done.

“But why Austin?” he insisted, “There can’t be that many Mormons here.”

My stomach curled. This was a job interview – I’d expected to discuss my qualifications for the position and express my interest in the company. Instead, I began to answer more and more invasive questions about my personal life and religion. The whole ordeal left me very uncomfortable, but because I was young and desperate, I put up with it. In fact, I even went back for a second interview!

At the time, I thought I had to put up with that sort of treatment. Only recently have I realized that the interview was extremely unprofessional and it wasn’t something I should have felt obligated to endure.

And I’m not the only one with a bad interview story. Recently, Slate ran an article sharing others’ terrible experiences, which ranged from having their purse inspected to being trapped in a 45 minute presentation! No doubt, this is just the tip of the iceberg when it comes to mistreatment by potential employers.

So, why do we put up with it?

Well, sometimes people just don’t know better. Maybe, like I was, they’re young or inexperienced. In these cases, these sorts of situations seem like they could just be the norm. There’s also the obvious power dynamic: you might need a job, but the potential employers probably don’t need you.

While there might be times you have to grit your teeth and bear it, it’s also worth remembering that a bad interview scenario often means bad working conditions later on down the line. After all, if your employers don’t respect you during the interview stage, it’s likely the disrespect will continue when you’re hired.

Once you’ve identified an interview is bad news, though, how do you walk out? Politely. As tempting as it is to make a scene, you probably don’t want to go burning bridges. Instead, excuse yourself by thanking your interviewers, wishing them well and asserting that you have realized the business wouldn’t be a good fit.

Your time, as well as your comfort, are important! If your gut is telling you something is wrong, it probably is. It isn’t easy, but if a job interview is crossing the line, you’re well within your rights to leave. Better to cut your losses early.

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What’s DMT and why are techies and entrepreneurs secretly taking the drug?

(BUSINESS) The tech world and entrepreneur world are quietly taking a psychadellic in increasing numbers – they make a compelling case, but it’s not without risks.

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Move over tortured artists and festival-goers, psychedelics aren’t just for you anymore. An increasing number of professionals in Silicon Valley swear by “microdosing” psychedelic substances such as lysergic acid diethylamide(LSD) in efforts to heighten creativity and drive innovative efforts.

This probably isn’t a shock to anyone following trends in tech and startups, particularly the glorification of the 8-trillion hour workweek (#hustle). But business owners, entrepreneurs, and technologists are also turning to other hallucinogens to awaken higher levels of consciousness in hopes of influencing favorable business results.

Dimethyltryptamine (DMT) is growing in popularity as business leaders and creatives flock to Peru or mastermind retreats to ingest the drug. It exists in the human body as well as other animals and plants. In his book DMT: The Spirit Molecule, Dr. Rick Strassman says “this ‘spirit’ molecule provides our consciousness access to the most amazing and unexpected visions, thoughts and feelings. It throws open the door to worlds beyond our imagination.”

The substance is commonly synthesized in a lab and smoked, with short-lived effects (between five to 45 minutes, however, some say it lasts for hours).

Traditionally, however, it is extracted from various Amazonian plant species and snuffed or consumed as a tea (called ayahuasca or yage). The effects of DMT when consumed in this manner can last as long as ten hours. Entrepreneurs are attracted to the “ayahuasca experience” for its touted ability to provide clarity, vision and inventiveness.

Physical effects are said to include an increase in blood pressure and a raised heart rate. Users report gastrointestinal effects when taken orally, commonly referred to as the “purge.” The purging can include vomiting or diarrhea, which makes for interesting conversation at the next company whiteboarding session.

Users are subject to dizziness, difficulty regulating body temperature, and muscular incoordination. Users also risk seizures, respiratory failure, or falling into a coma.

DMT can interfere with medications or foods, a reason why many indigenous tribes that work with it also follow specific dietary guidelines prior to ingestion. Not paying attention to diet or prescription medication prior to consuming ayahuasca or DMT can lead to the opposite of the intended effect, potentially even causing trauma or death.

So why the hell are people putting themselves through this ordeal?

Many claim profound mental effects, often experiencing a transformative occurrence that provides clarity and healing. Auditory and visual hallucinations are common, with reports of geometric shapes and sharp, bold colors. Many report intense out-of-body experiences, an altered sense of time and space or ego dissolution (“ego death”).

Studies have indicated long-term effects in people who use DMT. Some report a reduction in symptoms of depression or anxiety.

Subjects in an observational study showed significant reductions in stress after participating in an ayahuasca ceremony, with effects lasting through the 4-week follow-up period.

Subjects also showed improvements in convergent thinking that were still evident at the 4-week follow up. People who consume DMT generally chronicle improvements in their overall satisfaction of life, and claim they are more mindful and aware after the experience.

It’s important to note that dying from ayahuasca is rarely reported, but that doesn’t rule out the risk. It’s also illegal in the states, explaining why groups flock to Peru to visit licensed ayahuasca retreats or why technologists buy DMT on the dark web to avoid detection.

For those considering a DMT journey (and we don’t recommend it based on the illegal nature and health risks), it’s critical to gain a full understanding of the potential risks prior to consumption.

For more reading:

This story was first published here in June, 2019.

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