Attrition should always be a real concern for most new Realtors, even in the best of times. 2023 has gotten off to a slow start, and the last few months of 2022 were not exactly booming either. The way things are going, it would not be surprising to see abnormally high rates of Realtor attrition this year. According to the National Association of Realtors, it was noted in 2014 that 87% of Realtors failed. The Great Recession was particularly hard on most Realtors, and while we aren’t in a recession currently, I believe the low sales volume in Marin County will lead even more Realtors than usual to change careers.
As a full-time Realtor since 2004, I’m not concerned about my own business. By 2009 however I was very concerned, but I was determined to weather the storm and plant seeds for my future. I went where the business was, and first became a short sale agent before transitioning to representing banks. It wasn’t easy working with people in those distressful situations, and I tried to be as compassionate as possible. Although I never worked directly with a Realtor who lost their home, I knew several who did. It was a scary time, the housing market was dragging the entire economy down.
The seeds I planted were in the form of my Andy’s Patch newsletter which I’ve done consistently since 2009. Looking at it analytically, the newsletter has always attracted a significant volume of business. It took a few years to reach a mature rate of return, but my commitment to marketing led to a blossoming career. I know some of you reading this are newer agents, and I have a few words of advice for you.
- Don’t cut back on your marketing budget when business is slow, this is Marketing 101. Agents are tempted not to spend money, and in some cases they might not have it to spend. The problem and the solution are found in the old saying, “It takes money to make money.”
- Make a commitment to being consistent, and consistently effective. Look at what other Realtors are doing, and have done in the past, to become successful. Find someone successful and emulate their practices.
- Write down your goals and plans to achieve them. Revisit and revise your plans on a regular basis as you discover what works for you and what you want to do consistently.
- Realize whatever you do will have a certain probability of success, which will ramp up over time if you are consistent. The more avenues you pursue on a regular basis, the greater your odds of succeeding.
If the volume of home sales remains low in 2023 Realtors are going to feel the pain, some more than others. If you are one of the newer Realtors reading this, or even someone who has been in the business a while, you might want to consider my advice. Or consider another career.