A broker notices that an increasing number of agents are having to work part-time, due to slowing housing conditions. How does one build a full-time business on part-time help?
Blanche,
Always enjoy and profit from your articles. Our problem may be a common one these days: Several of our newer agents have had to seek other jobs in order to survive economically and many of the people we interview who are interested in becoming licensed agents cannot give up their present full time jobs. Can an independent small town Realtor build business with an office made up of mostly part-time agents? My hope is that some kind of business plan or formula might exist where we can utilize part-timers for their benefit and ours. Your advice would be most welcome. Thank you.
Full-time Broker
Realty Times responds:
You're not alone. Some of the biggest brokers in the nation are experiencing the same thing. "Our folks are mentioning that a noticeable number of people have gotten part-time jobs to supplement the current income level to what it was during the times of easy credit and investor speculation," a spokesperson for The Realty Alliance recently told me. Interestingly, he also said the firms that are part of the Alliance have reported no drop-off in the number of salespeople. That squares with the National Association of Realtors' recent assessment, that membership is about the same as last year.
So the good news is that agents appear to be viewing the market downturn as temporary and they want to leave a foot in the door.
They're lucky to have a broker like you who is concerned, and wanting to find a way to make this work for everyone.
Off the cuff, I would say it's possible to have a largely part-time staff, but that's going to cause you some additional headaches in terms of tracking productivity, gauging your costs and supplies, and maintaining your own business plan and goals.
Here are a few tips I hope you'll find helpful:
Have a sit-down with your agents, and get their commitment to continue their real estate job. They need to be available at predictable times. If the working hours are set at their other jobs, then they should also be set for their real estate job. I teach school from 8:00 to 4:00 and from 4:00 to 8:00 and on Saturdays from 9:00 to 5:00, I sell real estate. That's easy for staff, associates and clients to understand.
Tell them what to do. What agents need is a game plan. You know that when the going gets tough, the tough get going, so they need to know what to do. If you give them something to do and a deadline to do it, they'll feel more confident. So, put them on a production plan. That will keep them focused and up to date.
Are your agents making cold calls? Building databases of contacts, friends and family?
Tell them, "Pick ten people you know a week, find out everything you can about them, and put all that into your database. What are their jobs, number of children, where do they go to school, what are the family's activities and interests, pets, approximate income range? Put all that into a database and a calendar rotation so you are calling them at least every three months to see how they are doing. Sooner or later, you're going to find out something that will help you put that person into a better situation. Who wants to change schools for their children? Who's retiring? Who's lost a job or got a promotion? Peruse listings with your prospects' needs in mind, and you might find one that works for that buyer-seller."
Tell them what to talk about. Stop the stinkin' thinkin. No matter where you live, or how slow the market, there's opportunity. Do your agents realize that a buyer's market can be wonderful? That's the time to trade up and get into that bigger, better house. Buyers may still have a house to sell, but a buyer's market always means it's a landlord's market, too. With good credit, they can rent their current home and move up to a new home.
If the agents are stumped about what to say, tell them to call and tell their prospects the latest market conditions and anything else new they've learned that's related to housing. Are there any new employers coming to town? Who's letting jobs go? This way, even the part-time agent can be "the one who knows."
Give your agents a forum. Show agents how to work with investors, second home buyers, first-time homebuyers. Offer to conduct seminars at your office that your agents can invite prospects to attend on how to buy a home, how to buy a rental, how to improve credit to buy a home, how to make a home market-ready, and a plethora of other real estate-related topics.
Foster an attitude of support.. When you have your morning meetings, let your agents share a little about their prospects. They don't have to give the names, but another Realtor may know someone who could be a good candidate to rent the first agent's prospect's home. That's how business is built -- through win-wins for everybody. By working together, they aren't in this alone, but are solving people's problems together.
Teach your agents to become rental experts so they have a fall back position when a sale isn't in the cards. It's better to write a contract and get paid with one month's rent than to sell nothing for 6 percent commission.
Hire a transaction manager so your agents can concentrate on bringing business through the door, and less time bogged down with seeing the deal through. Your part-time agents will be more likely to make sales if they can see a way to get the paperwork and followup down through the broker. Of course, the price for that should be a reduction in commission, but they also don't have to do the extra work.
Stay positive yourself. Sales may have slowed, but some people still need to move, so there will always be business. Their job is to be the person that the transferee, divorcee, newlywed, new parent or widower calls when they need help.
Tell them to remember -- you're committed to what you spend your time on, and if you continue to show your concern by providing solutions, your agents should be able to return the example.
I hope that helps.
