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October 20, 2014

Brokerages Reveal Their Biggest Industry Challenges

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Brokerages Reveal Their Biggest Industry Challenges

What are the biggest business challenges facing the real estate industry? A new poll of top executives at leading franchises and independent brokerage firms pinpoints recruiting younger real estate agents as one of the biggest challenges that brokerages face. 

The poll conducted by Imprev, a real estate marketing software firm, found that the aging real estate workforce remains a top recruiting concern to brokerages. The average age of a real estate agent is 57, while the average American worker is 41 and the first-time home buyer is 31, according to data from the National Association of REALTORS®. 

"Over the last five years, the average age of real estate agents has almost moved in lockstep with the calendar," says Renwick Congdon, chief executive officer of Imprev.

The top concerns identified by real estate leaders about challenges they face in driving higher profitability include: 

  • 42%: “need more agents” and recruiting new talent;
  • 39%: physical space costs;
  • 35%: commission splits; 
  • 31%: support-staff costs
  • 22%: the “impact of discount brokers”
  • 18%: technology costs

The top competitive challenges that the real estate leaders identified in the survey included: 

  • 49%: competitors offering a “better commission split”
  • 46%: competitors offering lower costs for affiliation
  • 23%: having more market share
  • 22%: offering signing bonsues
  • 21%: providing more leads to agents

Source: Imprev

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