Do we have an impending Realtor shortage? Well 41% of all Realtors are over 60 years old. What are your thoughts on our clearly aging industry?
Comments
additional comments on "41% of All Realtors are Over 60 Years Old"
Comments are closed.
41% of All Realtors are Over 60 Years Old
admin - Wednesday July 20, 2016
With technology you do not really need as many agents. Also what are the breakdowns of the productive agents. 80% of all agents do not produce any results.
I am an RE agent for 5 years, I am 55 ys. It is really tough to make a dollar and being an agent is expensive. If I did not have savings, or my house paid for, or complete availability to work when most people are off… there is no way I could survive. Now on the better side, I am helping my daughter, 26, brand new RE agent because I need the help and she will not have to start from bellow the bottom as I did. I am lowering her expectation and want her to keep a regular part-time job to have some study income (particularly this coming winter).
On a more funny note… please watch this short video (as I invited my kid to do so):
http://www.realtor.com/news/trends/thousand-dollar-listing-shows-the-gritty-side-of-real-estate-biz/?cid=soc_editorial63825896&adbid=10154434531092871&adbpl=fb&adbpr=35368227870
Thank you Myriam! That was funny.
If you think the age of agents is crazy, youshould look at the average age of appraisers in the country. Getting an agent's licence is a much faster process than getting an apprasial license and then certification. The shortage of appraisers in the next decade could be an even bigger problem if the trends dont change. We are seeing some upward pressure on appraisal fees right now which is ultimately what it will take to bring more people into the profession.
Is 60 the new 50?? This might be part of this. Being active keeps people younger. Real Estate keeps you active & mind sharper & yet has flexibility. I’m one of them 🙂 Agree, I have about 7 years till I plan to semi retire. Interesting video!
You need agents to represent properties as much as you need representatives to issue a mortgage. Actually mortgages are more standardized products than a home, which is more an emotional transaction to the primary user. The problem with the number of realtors disappearing comes from the young "trying out" the profession to see just how awful it is. The older folks can't get hired to do something else, so they're sticking around for the odd deal or two that comes their way. To them, it's better than nothing. General real estate sucks! There is no loyalty on the part of the consumer. They will walk over an agent if it means saving a penny or giving "Uncle Harry" the commission to get part of it when the closing occurs. Younger people have more options and after trying out this profession, they soon realize they'd better find something that actually pays the bills. I do think the more productive members of this profession do fall into the top 20% of licensed agents. The old saying the top 20% are responsible for 80% has never been more true. The actual problem with this profession is that there is little training that is of value to agents. You can go over the legal stuff, but the art of selling a home is dying. That should be every broker's mission, to help agents with the art of selling. Not everyone was born to sell, but those that can should be nurtured by their broker. That might help a lot.
I am 68, in RE since 1982. I was over 40 when I get in. RR has always been, and as long as the compensation system remains the same, will be a "second career" and/or "part time" job.
Or, could it be that the technology you keep referring to doesn't really have anything to do with selling homes. You always reference technology as a buyer's agent, remember real estate is an inventory business. If you're the listing agent and you are using carbon copy forms, priced properly, the property is still going to sell.
I have made a good living for 29 years as a Realtor, (which is a trademarked word and is capitalized for heavens sake). Unless this is put in the context of prior statistics it means very little. I was 33 when I started and at that time I was the 'baby'. Most of the other agents were at least into their 5th if not 6th decade. I don't see any changing demographics whatsoever. Generally people are living longer, retiring later and their health is overall better. I am a better agent now than I ever was and I have no problem with any technology. I'm not sure why anyone near this profession would think that showing homes is what we do. We make our money by closing files. Figuring out the work arounds, seeing ahead and circumventing incoming problems, researching property history, having a sound knowledge of construction etc. My biggest peeve is agents who don't keep up with their education and skills. We are the guide for one of the largest and most important transactions any person makes. It affects them and their family for the rest of their life. We were told agents would be out of business by now because of technology. Well guess what? Here we are. Those that put effort, time and education into their profession and don't treat it as a part time grab make good money regardless of their age. There is lazy in every profession and it just doesn't cut it in real estate.
I am over 60, know ALL technology, work 7 days and evenings, this is bunk !!!
Here is the full picture. The average age has only ticked up by five years since 1975 when the average age was 50. I would think if looking at general statistics on death ages so has the life expectancy. http://infoservices.blogs.realtor.org/2012/02/01/the-average-realtor/
60 is the new 40. They have 20 more years to offer their services in the profession.
Could we affard to lose half the Realtors? Of course we can!!!!!
Everyone I know is using technology as Realtors. Bear in mind, technology isn’t the answer for those consumers who are not technology savvy. As a seasoned Realtor, I see many younger agents fall on their faces due to technology, lack of training and ethics bound issues. While I am nearing the 60 age number, don’t cast me out with the dinosaurs. Shame on you making this about age. Not ALL people, are created equal in real estate i.e., loan officers, appraisers, inspectors, real estate agents or sub agents (and many more). Let’s be real about this topic. Professionalism and staying abreast of the constant changes in real estate make us worthy! Part time loan officers, realtors etc are a disservice to the industry and clients/customers we serve.
Most 60 year olds are going strong and looking good – look at Christie Brinkley!! Seriously, it takes a good bit of money, time and a lot of work to build a real estate career. First job I ever wrote a check to my company to start working for them!! I started when I was in my 40's! I know technology and am continuing to learn more everyday. I think it's hard for younger people to start, because let's face it – you gotta have some money put back to carry you over until those commissions start rolling in.
We have quite a few 75-85 year olds that are still selling a lot of real estate! Surprising maybe , but their clients love them and are loyal!! I plan on selling until I'm ninety!!
Kudos to you guys for the heads up to a subject ignored by most in the real estate media. I have been advocating an agent awakening in my weekly podcast, http://therealestatezoo.com/trez-podcasts/. It's not just an age issue as much as a mindset that must change. Check me out!
Please stop with the sweeping statements regarding older people being tech iliterate. Many handle it better then younger people. You still live in an era that older people had to get their grandkid to fix the vcr. Perhaps we can come up with all inclusive comments about “smart” midage white guys from CA?
"Although slow, and dangerous behind the wheel, old Realtors CAN serve a purpose!"-LLoyd Christmas
This is nothing new. The average age of agents has traditionally been 57-58 for years. No reason to panic – one of my associates is 80 and works every day; others are in their mid 70’s.
Sadly, the general population feels that those over 60 are irrelevant; that’s the reality! I was pushed out of wholesale lending because of my age and a huge pipeline given to much younger inside agents. I’ve ventured back into real estate at 67 years old and find it much as it was in the 70’s when I first started. I left then because most of my days were spent driving people around looking at houses that they didn’t want to buy. Listing is still king and the rewards are great but it does take money and drive; it’s hard to get motivated to go door knocking, and cold calling. I am very tech savvy and will probably go back into lending. On the phone borrowers don’t know how old you are and I still enjoy that. Houses? Not so much! Young people are driven to tech jobs and law and marketing, Real Estate is never the goal of a college grad.
And Bank of America also has the 3% down program for first time homebuyers. most of these lenders you mentioned have gotten slapped around by the CFPB for some minor infraction on FHA loans. this is their best defense. come out with better programs.
And Bank of America also has the 3% down program for first time homebuyers. most of these lenders you mentioned have gotten slapped around by the CFPB for some minor infraction on FHA loans. this is their best defense. come out with better programs.
I am offended by your characterization of all "over 60" agents as being technologically challenged.
I'm over 60 and I am in agreement with previous posts below that we are as familiar with technology as the younger Realtors. In our area we are encouraging younger people to join the real estate business. I feel I can learn as much from them as they can learn from me and my 29+ years in the business. Don't you know, 60 is the new 40??? The challenge now with becoming a real estate is learning not just the forms & contracts, but keeping up with the technology. It becomes a pick and choose as to what is most important to you in the technology arena. The unfortunate side affect is newer agents concentrating on strictly the technology improvements and not keeping up with the ethics and other continuing education required by Realtors. Just sayin.
The very best person I ever showed real esate with was in his 80’s. He was the listing agent. I go with my buyers and he told them how three couples before them had bought the house, he had listed it each time, how much they paid and how they all made money! They couldn’t wait to sign the contract! Nothing like history, lol!
Wow!! Perhaps you guys need to do a little more research before you speak on a topic. To say that anyone over 60 can't do a certain job is just stupid! My wife and I are both 59, and are in the top 5% of all Agents for production. Our Buyers and Sellers come to us for the experience we bring to the table and our client first work ethic; and yes, technology know-how. To suggest, we don't have the energy to provide a high level of service is so incredibly insulting, I am compelled to unsubscribe from your posts.
I think the "41% of realtors are over the age of 60" stat is only interesting if you assume that all realtors do the same amount of business (units/volume). What would be more interesting is (and I have no ide if the stat(s) exist) what is the percentage of total units and/or volume is conducted by those Realtors over 60 years of age. In other words, 41% of all Realtors might be over 60, but that 41% may only be responsible for 20% of the total volume, leading us to conclude that those agents under 60 are conducting a higher amount of business. Good story, though.
I just turned 61 so I guess I fall into this category. I have NO intentions of slowing down and I have a higher grasp technology than most my age.Our problem is you can't get the new/younger agents to help you with the open houses or do them for you once they are comfortable. When I started 14yrs ago I was Hungry and did every open house I could possibly do for the other agents. The younger agents barely come into the office, they don't go on tour and barely see them at in house training sessions. When they do come to an occasional sales meeting, they are bent over on their phones. Makes you wonder why they ever got into the business?
Wells Fargo has 1 billion applications and the USA has 330 million people. What am I missing here?
Wells Fargo has 1 billion applications and the entire population of the USA is 330 million. Umm, yeah that makes a ton of sense.
Well, you certainly packed a lot into this episode!
1. I believe you will see young people enter the business in force WHEN WE HAVE A RECOVERY. They see how hard the sales business has been with the economy we have had since 2008.
2. You will see less people retire than you think, until AFTER THE NEXT BOOM (which we are all praying for). No one can afford to retire and we will all be laying in our caskets with a contract in our hand…alternatively, if your agent gets really quiet at the closing table, check their pulse.
3. NAR is so out of touch, the top brass might as well be in Congress or the Senate. Fun fact, they just had a big weekend meeting at a 5-star (read $$$$$) resort, where they booked the whole resort in PEAK SEASON and got fed 5-star meals (at the most expensive restaurants in the resort) on our nickle. Sounds just like our politicians & bureaucrats. Yeah, this was the place where the G8 Summit was a few years ago.
4. BTW, Stewart Wade is an awesome guy!!!
5. Pokeman GO crashed this afternoon…LOL
I agree to a certain extent with your last comment, but the explosion of discount brokers and 100% programs is also to blame as they are not providing any training (nor telling the newbies why then need to be trained).
I want to hug you! You had me at the propert pronunciation of REAL-TOR xoxoxox
What a ton of crap! Young folks are not getting into the business because it's actually work and so few Millenials have any "people skills". They lose as many sales as they make because they can't negotiate, they don't understand the art of the deal or how to make it "win-win" for buyers and sellers. They think they can look at houses on their laptop and know it inside and out. They don't caravan or hold open houses. That would require live communication!
Add in the incomprehensible Dodd Frank debacle and its rules, it takes much longer to make a sale. Couple that with retirement, and we're sure to have a shortage. As for me, I plan to work into my 80's, God willing,not because I have to, but because I want to. I know the value my experience brings to the table.
Has nothing to do with being technologically challenged.
Would buyers rather have an agent who can use his Iphone better than me, or have an agent with 16 years of practical experience ? ? This world (and all the technology) is messed up !
Just saying, I'll be 73 in December. I am a FULL TIME property manager. That's 24/7. If there is an emergency in the middle of the night I am there with camera and cell to handle the problem. I stay on site till the problem is under control. I do all my own listings, showings, move-out, move-in, and supervisor all maintenance and repairs. Within the last couple of weeks I have been on roof's twice. Once to inspect a new installation of an AC unit and the other to assess the damage of a micro burst that tore off just a little over a third of the roof which was left in the yard and the street at 9 o'clock at night.
I have also in my spare time closed a couple of sales this month. (Oh, and the picture is about 15 months old!) We Seniors can hold our own!!