Finding a Real Estate Agent with Staying Power
But even with rampant real estate growth, as many as 50 to 70 per cent of new real estate agents leave the business within the first two years.
In fact, the Bureau of Labor Statistics, part of the US Department of Labor, expects openings for real estate agents to grow more slowly than other occupations through 2012, and what growth remains spurred largely by the high turnover rate among newer agents.
Add the current leveling, or quieting down, of the real estate market, combined with increasing interest rates, and it seems likely that the number of real estate agents leaving the field could increase further. (Even the BLS statistics assume that interest rates will remain low. If they do not, the department’s prediction could worsen.)
To the average buyer and seller, this raises an interesting question: How do I find an agent with staying power, who won’t leave the real estate business before my house is bought or sold? Factor in the market that is growing ever-quieter, increasing continuing education for agents, and continuing technology developments, and even established agents may not want to stick around.
While some agencies rely on what has always worked, others in the East Bay are introducing new models of operating a real estate agency to reduce agent turnover.
Chances are, you’ve noticed the Keller-Williams name appearing locally. A national agency with offices that opened in the East Bay several years ago, Keller-Williams has been able to attract the best agents by turning the real estate agency model on its head.
“I would guess our current attrition rate is anywhere from 5 to 10 per cent right now,” says Bryan Taing, managing partner of Keller-Williams’ San Leandro office. Opened by broker Anna Maria Wong with over 85 agents, the office now boasts a roster of 120.
Although Keller-Williams is making a large splash nationwide, Taing notes that the San Leandro office has the top 10 per cent of all agents in Northern California and Hawaii.
But Taing says that the quality of agents, not just the quantity, provide Keller-Williams with its success. “We’re not interested in just doing a body count,” he notes, adding, “Keller-Williams calls the process ‘Kellerization’.”
That process includes offering agents a finders’ fee for recommending and recruiting other successful agents to their office. Once on board, Taing says agents find an atmosphere that is often completely different from their previous experiences.
“Traditional real estate agencies are more hierarchical,” he explains. “We’re here to promote team-building, because one agent can’t do all of the things needed any more.” In fact, Taing says of the one-agent-doing-it-all mode, “It’s a very archaic model.”
At Keller-Williams, agents specialize, with some focusing solely on buyers, some on listings and sellers, some on open houses, and some on marketing or the paperwork required for a real estate transaction.
That approach, Taing notes, provides a more productive atmosphere. “Management is here on more of a support level,” he notes, providing resources more than managing or micro-managing.
A large part of the support also includes training. “At the local San Leandro office, we have about 8 to 12 classes a month,” Taing explains. That emphasis on training is also regional and national in scope, with agents or trainers traveling to obtain additional information.
Nor is the training just a nice-to-have thing, something in the background that quickly collects dust. “We’re very tough on making sure our agents are well prepared,” Taing says. “For agents who are struggling, we sit down with them and ask, ‘What is it about this business that you’re not making it with?'”
That kind of assistance isn’t limited to formal classes, either. Taing says that almost every person has an open door policy, and the expectation is that experienced agents will (and do) help less experienced ones. “A new agent here can walk into any top producer’s office, and if they’re available, they will help. After all, if a new agent isn’t profitable, then the company won’t be successful. It’s quality over quantity.”
Taing says the emphasis on overall success and high quality is what will help the agency remain successful, even in the face of a downturn.
Taing is already seeing indication of stagnation in real estate. “San Ramon had 50 to 70 homes for sale at this point last year,” he explains. “This year, that number is about 200. Inventory has doubled or tripled.”
The result, according to Taing, is that buyers and sellers alike will seek the highly trained, well-prepared agent and avoid cutting corners. “It’s no longer a one-week kind of process. Sellers are already beginning to recognize it is going to take more effort to sell a home.”
And gratefully for sellers, perhaps, Keller-Williams has been acting on that belief for some time.
