Over the past 4 years the number of real estate agents has dropped from 1.2 million to approximately 700,000. In four years 40% of agents have left the industry and more will follow.
Those agents who left the industry were forced to do so because they did not adapt their business plan to the changing market
Here in the Toronto GTA, we can look forward to the same drop-out rate over the next few years.
2. For the first time in the history of our industry we not only have the right but the legal obligation to sign our buyers under a buyer representation agreement in a falling market. This is a vital point to note b/c the last time the market fell, which was in 1989; we did not have this capability.
The importance of this ability lies in our fiduciary duty to our buyers. We are now obligated to take them under our professional wing and to coach, educate, and help our buyer clients through this market. This means that we can actually show them how to take advantage of a falling market and get them a better deal then they ever though possible.
3. All the stars have aligned for us, as the TREB and other boards across the country have recognized as being important, has the capability of registering your buyers under the buyers registry system, "BRS". The 'BRS' works exactly the same way as MLS, in reverse. Buyers Registration System.
Once you sign your buyer up on a buyer agency agreement you can now register that buyer on 'BRS'. Listing agents who are having difficulties getting showings can now consult the BRS system in order to find agents who have contracted buyers whose requirements fit those of the listed property in question.
4. Commissions. Even in an up market, when sellers are getting 100%, 105% or even 110% it is common place for agents to be subject to their seller clients asking for kickbacks or lowers rates of commission. In the times ahead you can bet this is going to get worse.
Perhaps you have noticed in the last few months, that there are greater and greater numbers of listings that are offering a full 2.5% commission to the co-operating broker.
Look a little further and it will not be hard to notice that it is becoming common place for co-operating brokers to be given a bonus on top of the 2.5% commission. Going forward listings agents will take less and less commission and buyer agents will gain more and more of the total commissions and that is not even mentioning other bonuses such as flat screen TV's, trips, cash bonuses etc...
5. It is a statistical fact that buyers give 2-3 times more referrals than sellers.
6. If you become diligent and serious about building an inventory of buyers and building a business plan around your buyer clientele two things will happen
- You will get more listings than you ever though possible
- You will have absolutely no competition.
Source; Ken Wilder The Real Estate Coach