Sunday, January 14, 2007

Realtors Turn In Licenses

From Today's Asbury Park Press

"With home sales down about 20 percent in Monmouth and Ocean counties, real estate agencies are cutting expenses and diversifying their businesses. And as the business gets more competitive, some agents are deciding not to renew their licenses."

snip...

"Since the industry's revenue comes from commissions, when sales slow down, so does its revenue. To cope, agencies are employing a number of strategies. Some are cutting expenses, while others are actually increasing their marketing and spending more on training. Some agencies are diversifying into other areas of business such as insurance. Individually, some agents have decided to take some time off and are putting their real estate licenses on hold."

Full article...

One of the problems with having too many Realtors is that a delusional house seller can always find a Realtor willing to accept a listing that is obviously too high. I think as the Realtor population declines, the remaining Realtors will be able to walk away from listings that have no chance of being sold because of the price.

5 Comments:

Anonymous Anonymous said...

NJ ASBURY PARK PRESS: Real Estate article *FALLOUT*
=====================

Fallout

With home sales down about 20 percent in Monmouth and Ocean counties, real estate agencies are cutting expenses and diversifying their businesses. And as the business gets more competitive, some agents are deciding not to renew their licenses.

Posted by the Asbury Park Press on 01/14/07
BY DAVID P. WILLIS
BUSINESS WRITER

Post Comment
It's not easy being a real estate agent anymore.

In the heady days of the market in 2004 and 2005, houses were selling like hot cakes as prices rocketed up.

That's no longer the case. As home prices showed signs of peaking last year, buyers sensed a change in the market and no longer were willing to pay the asking prices on many properties. At first, homeowners were reluctant to drop their prices. The result? Real estate sales stalled in 2006.

And just as sellers and buyers have been struggling to adjust to changing market conditions, so has the real estate industry.

Since the industry's revenue comes from commissions, when sales slow down, so does its revenue. To cope, agencies are employing a number of strategies. Some are cutting expenses, while others are actually increasing their marketing and spending more on training. Some agencies are diversifying into other areas of business such as insurance. Individually, some agents have decided to take some time off and are putting their real estate licenses on hold.

"The agents that are buckling down and are really going to focus on getting listings priced well and working with motivated buyers . . . are still doing well," said Ric Martel, general sales manager at Prudential Zack Shore Properties.

"(But) people who were in the business for the easy sale or the quick sale, or they were going to try out the real estate business because they felt it was a great market, they have not done well at all."

How big of a hit has the market taken?

Homes sales in Monmouth County through the end of November dropped by 18 percent to 7,406 compared with the same period a year earlier, according to Jeffrey G. Otteau, president of the Otteau Valuation Group in East Brunswick. Sales in Ocean County during the same period fell by 20 percent to 7,352 during the same period.

READ SOME MORE-> http://www.app.com/apps/pbcs.dll/article?AID=/20070114/BUSINESS/701140331/1003

Monday, January 15, 2007 1:25:00 AM  
Anonymous Anonymous said...

I love Mr. Otteau's comment in this article that "the market is beginning to recover". Many of the so called experts are now saying this.There will not be a "recovery" until prices drop about 25% from peak 2005 prices and then level off for a few years. When sellers come to terms with this and first time buyers start buying again, then we will have a recovery.

Monday, January 15, 2007 5:13:00 PM  
Anonymous Anonymous said...

Hey Littlesivered, It's great to see that we can post anonymously on this blog again. I have been a regular poster to this blog for almost two years, but I wish to remain anonymous. I almost gave up on this blog. I'm glad I checked back. I think those Kara posters almost ruined this blog. I wish we would see less Kara people on this blog. Enough already.

Monday, January 15, 2007 5:25:00 PM  
Anonymous Anonymous said...

A great resource for New Jersey Real Estate for both for sale by owners and Broker/Agents are sites like NJville.com and craiglist. These types of sites allow you to advertise your listings for free. Which could,t have come at a better time. Free advertising is always good compared to spending small fortune in print.

Tuesday, January 16, 2007 11:22:00 PM  
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