Individual real estate agents and real estate companies are finding themselves caught between a rock and a hard place as they attempt to do their jobs in the current market.
With the average days a home is on the market increasing, agents are finding themselves spending more and more of their own money promoting and marketing these homes with no sale date in site. This problem is compounded by the rising foreclosure and short sales or when a home is incorrectly priced and the seller refuses to adjust or the agent fails to regularly update the seller of the changes in the market as it relates to the seller’s home.
The cost of materials and time to prepare multi-colored flyers and promotional pieces, the cost to send out marketing pieces through bulk and first class mail, the cost to maintain a staff of assistants and receptionists to handle incoming sales calls and inquiries, the cost of gas prices to drive potential customers to the property, the cost to maintain equipment to keep up with the increase of activity, the cost of for sale signs and sign riders, the cost of print advertisement to promote the agent or office listings and the cost of maintaining an internet presence to promote the listings continues on regardless of the dwindling sales.
These ongoing costs coupled with very little profit will continue to force agents and real estate companies out of business as time goes on. Those agents and companies that survive will do so by making the adjustments needed now and refining their business model to adapt to the current conditions.
Reducing business overhead that does not directly affect the customer, reducing or eliminating ineffective marketing and striving to continually educate the seller on proper pricing and price enhancements are the steps being taken now by those agents and companies who will remain strong regardless of the market.
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- Greg Staker - Watson Realty Corp. - 407-304-0255
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