Attention Real Estate Agents and Brokers:…Danger Looms!

My fellow real estate professionals, I need your help. This will take some thought in order to address these perceived and/or real dangers we face as real estate agents and brokers in the coming years, however, with our collective minds I’m confident we will come up with some fascinating solutions.

Please just take a minute or 5 and comment on 1 or more of these dangers mentioned in the NAR’s report.  I have started the conversation below.

My goal here is to see how powerful it is to have many minds working on the same issues at the same time. Sounds powerful all by itself!

Here’s The Info:

Below is a summary of the Danger Report that is put forth by the National Association of REALTORS®.

I’d love to have some agent and broker feedback relative to some suggestions for solutions to any of these dangers you feel is spot on.

I’ll begin the discussion below in the comments section.  Let’s discuss, shall we?

The National Association of REALTORS® released The Danger Report in June of 2015. They describe this report as a wide-ranging list of the threats and challenges facing the real estate industry in the next 3- 5 years. NAR employed the services of  Stefan Swanepoel to help research and write a comprehensive report. The report did not include any solutions since it was designed to spark an industry-wide conversation.

Dangers Impacting Real Estate Agents

  1. Mediocrity breeds contempt: A plethora of lesser-educated, inexperienced, and unscrupulous real estate agents flooding the market in search of quick bucks contaminates the reputation of seasoned and ethical professionals.
  2. Getting down with fees: The increase of flat fees, FSBO sales, and other factors has been contributing to the decrease of real estate commissions.
  3. There’s no “I” in “team”: With strength in numbers, agent teams are depleting individual agents from brokerages, leaving them exposed to uncertainty and excess stress.
  4. You’re workin’ for the man now: Based on changes in the IRS rulings regarding real estate agents, they are now re-categorized as employees instead of independent contractors.
  5. Out with the old, in with the new: Online searches, FSBO, and other do-it-yourself methods are creating an illusion of agent irrelevance.
  6. Change in the balance of power: For better or for worse, solitary contractors are being pushed out to make way for changes in the style of property selling.
  7. The failure of financing: The former buoyancy of mortgage-backed securities has transformed into unacceptable levels of risk, resulting in less financing available for loans.
  8. Monopolization of the market: As larger investors take hold of the residential real estate market, the behavior of that market, along with its liquidity, are negatively affected.
  9. The winners take it all: When clients realize that only a select number of agents have the knowledge and expertise to offer true value, compensation is funneled into the pockets of only a few agents.
  10. Absence of the agent: Technology has its advantages, but it can also create enough of a workaround to remove the agent from transactions – but this isn’t always a good thing, for both real estate agents and clients alike.
    Dangers for Real Estate Agents

Dangers Impacting Brokers

  1. Rules, rules, and more rules: Increasing regulations and severe penalties mean that compliance is costing more and more. But clients need to know that the industry is regulated to inspire confidence, and brokers and agents pay the price.
  2. Onslaught of online brokerages: With no rent and few overhead expenses, online brokerages have taken the industry by storm.
  3. Do you know where your data is?: With the plethora of inconsistent and opposing data, it’s no wonder that consumer confidence in so-called facts has been plummeting.
  4. Broker-zilla: Huge brokerages not just enter the market, but annihilate many of the smaller yet well-established players.
  5. New is here to stay: Innovation is almost always praised. Updated and streamlined business compensation models eclipse traditional methods. While this can redefine the relationship between brokers and agents, it is not always for the better.
  6. Undercutting the market: Offering many of the same support and services but at cut-rate costs means that full-scale and value-driven brokerages are being undermined financially by new businesses.
  7. The technological quandary: Cutting edge technology is efficient and alluring, but it is also costly. How can brokers remain current with such exponential and continued costs?
  8. Power to the people: From viewing properties to negotiating a sale to arranging a home inspection, clients realize that they do not necessarily need a broker to complete a transaction – but at the broker’s expense.
  9. Taxed to the max: Governments keep increasing the taxes that individuals and businesses alike must pay. This action continues to impact brokers’ ability to stay competitive negatively, and can exert excess pressure on the relationship between brokers and real estate agents.
  10. The power of online advertising: By harnessing the power of national online advertising, expenses lessen while the reach of business grows steadily. For real estate agents, lead generation will need to arrive from both new and traditional sources, until one of them appears to be the dominant source.

Dangers Affecting Real Estate Agent Broker Owners

Original Report: Danger Report Courtesy of the National Association of REALTORS®

What say Ye!


I am a three decades+ veteran of the sales/marketing industry. I struggled at first to make a living but then had the good fortune to meet my mentor, Tom. Tom was, at one time, the #1 salesperson in the nation for his product which was also my product. I simply applied what he taught me and 'Boom' my career took off like a Roman Candle! I set records, won awards and trips, had all the goodies and discovered along the way how to live a balanced and rewarding life. After 3 decades of selling/coaching/training I now dedicate ALL of my time to helping others learn strategies that will get them where they decide to go. If you'd like a FREE Strategy Session go to: and fill out the request form.

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Posted in REAL ESTATE UPDATE!!, sales,strategy,passion,united

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