The Case For Helping Your Real Estate Agents Retire

Nearly half of those polled in Inman’s special report survey said they don’t get help from their brokers when transitioning out of the industry to retire.

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Doing nothing as a real estate agent just isn’t good enough, said Joseph Rand, a managing partner at Better Homes and Gardens Real Estate – Rand Realty in New York and a passionate advocate of establishing a transition process for retired real estate agents.

Rand said it might not have crossed their minds to brokers so far, but those successful agents who built businesses within brokers in the 1980s instead of going self-employed would be retiring in the next 10 years – and this is it are valuable companies that could be lost forever if brokers don’t show up.

“The industry has not established a business transition procedure for an agent looking to retire. It is a time bomb that some of the most productive agents will leave the industry and their business will be up for grabs in the next 10 years, ”he said.

“They have a good book to keep moving over five years and brokers should help them with that.

“The win-win-win situation is the agent’s transition, the junior agent building their business and keeping customers intact. The customer, who is used to working with the same agents, receives a certain degree of continuity. “

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While there is an established path for brokers to want to sell their business and a market ready, there is no market to sell business for agents, Rand said.

A number of respondents in the survey said their database didn’t feel completely solid as lead generators and internet leads clouded the water.

“If you’re a real estate agent and your business relies entirely on internet leads, you have nothing to sell. There is no ledger there. If you’re an agent who has personal referrals, a good reputation, a brand, a website, a Facebook page, and those that do business for you, then you have something of value, ”Rand said.

“If someone can get your cell phone number or your website, they can build your reputation, start marketing and then switch. You are no different from a doctor or attorney who has a ledger that can be sold. ”

Some companies – including Keller Williams, EXIT Realty, and eXp Realty – are the exception because there are systems in place that are connected to recruiters.

In some offices, Re / Max is said to have matched veteran agents with junior agents, with the idea that the older agent would hand over his business to a junior agent in time.

Some brokers reportedly gave real estate portfolio building information to their agents, but did not have agent transition programs upon retirement. And a number of respondents were still recovering financially from what the 2008 Great Recession had to do with their property investments, delaying retirement in some cases.

A successful agent in Austin, Texas with more than six years experience, he said, “We’re on our own. It’s a terrible industry for retirement planning. “

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