Connect with us

Business News

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.

Published

on

young executives

young executives

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.

Continue Reading
Advertisement
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

Leave a Reply

Your email address will not be published. Required fields are marked *

Business News

Plastic bags are making a comeback, thanks to COVID-19

(BUSINESS NEWS) Plastic bags are back, whether you like it or not – at least for now.

Published

on

Plastic bags

Single use plastic bags are rising like a phoenix from the ashes of illegality all over the country, from California to New York. Reusable bags are falling out of favor in an effort to curtail the spread of COVID-19. It’s a logical step: the less something is handled, generally, the safer it is going to be. And porous paper bags are thought to have a higher potential to spread the virus through contact.

It’s worth mentioning that single use plastic bags are considerably more
environmentally efficient to manufacture compared to paper, cloth, and reusable plastic bags. Per unit, they require very little material to make and are easily mass produced. It also goes without saying that they have a very short lifespan, after which they end up sitting in landfills, littering streets, or drifting through oceans.

In the grand scheme of things, it’s hard to deny that single use plastics have the potential to be as dangerous to humans as COVID-19. Coronavirus is a very immediate existential threat to us in the United States, but the scale of the global crises that stem from the irresponsible consumption of cheap disposable goods, also cannot be overstated. The Great Pacific Garbage Patch isn’t going anywhere. (And did you know that it’s just one of many huge garbage patches around the world?)

So… what exactly are we going to do about the comeback of plastic bags? Because to be honest, I used to work in grocery retail, and it is difficult and often unrewarding. So, I wouldn’t exactly love handling potentially contaminated tote bags all day in the midst of a pandemic if I were still a supermarket employee. You couldn’t pay me enough to feel comfortable with that – forget minimum wage!

I used to have a plastic bag stuffed full of other plastic bags sitting in my kitchen, like American nesting dolls, before disposable plastics fell from grace. (I’m sure some of y’all know exactly what I’m talking about.) This bag of bags was never a point of pride. It got really annoying because it just kept growing. There are only so many practical home uses for the standard throw-away plastic shopping bag. Very small trash can liners; holding snarls of unused cables, another thing I accumulate for no reason; extremely low-budget packing material; one could get crafty and somehow weave them into a horrible sweater, I guess.

I don’t miss my bag of bags. I don’t want to have to deal with another. Hey, Silicon Valley? Got any disruptive ideas for this one?

Even if we concede that disposable plastics are a necessary evil in the fight against COVID-19, the fact remains that they stick around long after you’re done with them. That’s true whether you throw them out or not.

I’m not trying to direct blame anywhere. Of course businesses should do their best to keep their customers and staff safe, and if that means using plastic bags, so be it. Without clear guidance from our federal government, every part of society has been fumbling and figuring out how to keep one another healthy with the tools they’ve got at hand. (…Well, almost every part.)

The changes to the state bag bans have been cautious and temporary so far, which is a small relief. But nobody really knows how much longer the pandemic will rage on and necessitate the relaxations.

I won’t pretend that I have a sure solution. All I can really ask is that we all be extra mindful of our usage of these disposable plastic products. Let’s think creatively about what we might otherwise throw away. We must not trade one apocalypse for another.

Continue Reading

Business News

Scammers are taking advantage of the unemployed

(BUSINESS NEWS) In a country that’s been stricken by higher-than-ever levels of unemployment, scammers have found a unique way to target this vulnerable demographic.

Published

on

With unemployment rates reaching unprecedented levels in recent months, it’s a fairly safe bet to say that there’s something that many of us currently have in common: we need a job. While these levels are slowly starting to decline, already down to 11.1 percent in June from an all-time high of 14.7 percent in April, the need for steady gainful employment is still great for many Americans. That’s what makes the newest scam making its rounds particularly vile.

There’s a common misconception that people who get scammed largely deserved their misfortune. Whether it’s presumed that they got greedy, they fell for something that was too good to be true, or they were looking for an easy way out, it’s both unfair and unkind to make these snap judgements of victims of scammers. When it comes to scammers, there’s only one party to blame for these wrongful actions — the scammers themselves.

And with literally millions of people looking for a job right now, these scammers have found a new round of susceptible people to target. It’s a fairly well documented fact that scammers have a knack for knowing who will be easy prey, and this latest scam is no different. According to a report from the Better Business Bureau (BBB), scammers have ramped up their efforts to separate desperate job seekers from what’s left of their meager funds.

This scam is nothing new, but it has surged in popularity with the sheer number of people looking for jobs in today’s economy. Dubbed the “employment scam,” it can take on many forms, but the end result remains the same. At the end of the day, if a person is bilked out of their money, then the scammer has won.

What does this scam look like, and how can you safeguard yourself from falling prey to it? Please note that anyone — from all walks of life, no matter your age, your sex, your race, or any other factor — can become a victim of a scam. The only way to protect yourself is to be aware of the scam and recognize the signs of it. If a potential employer asks any of the following of you, then there’s a good chance they’re a scammer:

  • You are required to pay the so-called employer for your own training up front.
  • You are expected to give up your banking/personal info for a credit check.
  • You are overpaid by a fraudulent check and told to wire back the difference.
  • You are told that you need to pay for expensive equipment to work from home.

Please note that these scammers can spoof legitimate companies. They may try to pass themselves off as real-deal businesses; they’ve even tried to emulate the BBB itself. And when you refuse to follow through with their demands, they will double down and might even become hostile and aggressive, resorting to threats and cajoling. It’s important to not cave in; once they start bullying you, they know the gig is up.

The BBB also notes that coronavirus has created a “perfect storm” for scammers, but there are a few things you can do to protect yourself. They advise that you avoid social isolation, as that can make you more vulnerable to scammers. When in doubt, seek out a friend’s feedback. Sometimes a reality check can make all the difference in whether or not you become a mark. Do a little bit of digging online before you accept an “offer” or share personal information. And finally, be prudent. No matter how many warnings the BBB puts out each year about scams, the only person who can really protect you from getting scammed is just one person…yourself.

Continue Reading

Business News

American Express’ cash back program helps members support small businesses

(BUSINESS NEWS) Between now and September 20th, AMEX is providing $50 in credits to their cardholders to support local businesses.

Published

on

cashback program

It’s no secret that coronavirus has been nothing short of devastating for small businesses. Even with the Small Business Administration (SBA) offering financial relief in the form of the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL), many small businesses are still struggling to keep their doors open. So far, the numbers have been astronomical — to the tune of some 100,000 small businesses closing down permanently, according to a report from the National Bureau of Economic Research — and they’re expected to continue to rise as the pandemic drags on.

With that in mind, American Express has come forward with their own disaster relief program of sorts. Between now and the 20th of September, the credit card company will be offering a cash back rewards incentive for their cardholders. The program is fairly simple and straightforward: for every $10 (or more) that you spend at a small business, Amex will give you a $5 statement credit on your account. This can be repeated up to ten times, for a total of $50 in rewards. Not bad, huh? But the question remains: what’s a mere $50 in the grand scheme of things, and will it actually help out small businesses in the long run?

Well, first and foremost, $50 is no small chunk of change. For most of us, it’s a fairly decent perk, especially since it requires us to do what we would have done anyway (shop at local businesses). Whether you feel like getting takeout from your local mom-and-pop restaurant, you’re going to pick up a few groceries for dinner tonight at your corner market, or you need to take Fido in for a checkup at your neighborhood veterinary clinic, these activities all count toward the reward program. You’re literally getting paid for shopping locally. Easy peasy.

And secondly, historic data does prove that these incentives do work. Amex rolled out their first small business reward program back in 2010, called Small Business Saturday®, as a response to the mass consumerism of Black Friday. In 2015, the SBA decided to get in on the fun and joined forces with Amex, sponsoring the program. Even better, a study from 2019 revealed that a whopping $19.6 billion was funneled back into local economies thanks to the initiative. So while “just” $50 may not seem like much, it adds up to impressive numbers when seen from a more macroscopic perspective.

This isn’t the only program that has Amex’s name standing behind it, either. The company is also the driving force behind the Stand for Small program, which unifies larger businesses who are offering their own helping hand to smaller businesses. Whether you’re looking for assistance in managing your expenses, or you’re in need of help in growing your online presence, the Stand for Small program was designed to help make this possible. Large names like Amazon and eBay are included in the ranks that have rallied behind Stand for Small, lending clout to this program.

So what’s a little extra $50? Is it worth it to you? Sure, the intentions of some of these companies may be somewhat less than magnanimous — there’s no arguing that there’s something in it for them, as well — it doesn’t change the fact that in an economy that’s been crippled by COVID-19, they’re actually doing something instead of just sitting there idly and waiting for someone else to take action.

That, at least, has to be worth something. And if you’re wanting to get your hands on a share of the cool fifty bucks courtesy of Amex, they’d like to remind you that you do need to enroll in the rewards program no later than July 26. If you don’t, you may miss out on your opportunity to help keep small businesses afloat (while also enjoying an extra $5 in your pocket here or there), courtesy of American Express.

Continue Reading
Advertisement

Our Great Partners

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Emerging Stories

Get The American Genius
neatly in your inbox

Subscribe to get business and tech updates, breaking stories, and more!