Texas Squeeze: A series investigating the high costs of high growth in North Texas.
The idea of getting out of the back of a computer screen to meet people and help find a home made him interested in Taylor Martin, who quit his job remotely as Marriott’s sales manager in October 2021 and pursued real estate full-time. I was intrigued.
Melissa Martin, 33, has been working as a real estate agent on the side of EXP Realty since 2020, focusing on new home buyers. Before working at her Marriott, she booked her wedding and event at a hotel in Dallas.
“Working from home was neither fun nor fun for me,” Martin said. “One of the things I learned about myself is that I want to be part of a big decision in people’s lives and part of that moment.”
Martin is one of Dallas / Fort Worth and thousands of people across the country and has become a real estate agent in the last two years. The housing market exploded And with a pandemic, people rethought what they were looking for in their careers. But all of these new agents are currently facing a difficult rise, Few homes to sell..
According to the National Association of Real Estate Agents, more than 100,000 people became real estate agents nationwide between 2020 and 2021.
According to the MetroTex Association of Realtors, the number of agents subscribed to the Multiple Listing Service used to sell homes throughout North Texas has increased by 24% from approximately 40,000 to 50,000 since February 2020.
Brian Pacorsky, Senior Managing Director of the Dallas Compass, said: “There are so many crossovers.”
At the same time, the supply of homes on the market in D-FW and its surrounding areas decreased from about 20,000 in April 2020 to about 8,000 in April 2022. Less than half of the number available before the pandemic..
As of April, there were about 6 agents for each single-family home for sale in North Texas. Experienced agents have a hard time finding homes, not to mention new agents that don’t have a network of clients. ..
“Getting a list is like gold in this market,” said Daniel Nollley (42), who joined Ebby Halliday Realtors in January with partner Morgan Grounds (41). They have contracted three lists so far.
The impact of pandemics on clerical work has also led Norry and Grounds to real estate. The 2020 pandemic forced JCPenney to abandon its grounds from a corporate standpoint and consider a new career path. After two years of working from home, Norry wasn’t interested in returning to the office full-time.
“We have COVID uncertainty around the world and we feel it is a great opportunity to seize our careers and decide to manage our income,” Grounds said. I am.
However, opportunities for career changers can also be a costly competition for everyone.
Over the last two years, competition between agents has led many to lower commission rates, Pacholski said. In the normal market, distributors evenly divide 6% of the selling price, while some sellers’ agents reduce their share from 3% to 1%.
“Given the competitiveness of the business, there is no doubt that the easiest way to compete is to slice the committee,” he said.
Even veteran agents can have a hard time figuring out what’s happening in the market Significant changes in sales activities and inventories Over the past few years. According to the American Real Estate Agents Association, about 10% of all agents drop out of work each year because of their business competitiveness.
“For new agents who are really trying to understand the pace and how to dive into it … it can be very frustrating,” says Pacholski, and many new agents leave support or business soon.
According to the National Association of Real Estate Agents, Texas realtors with less than two years of experience generated a median total revenue of only $ 9,300 in 2020. 2021 Member ProfileHowever, income varies greatly depending on your business activities. NAR reports that the median total revenue for Texas agents was $ 38,750 in 2020, before the pandemic’s surge in home sales.
In addition to the difficulties, agents need to not only pay for brokers, lockboxes, marketing, petrol, etc., but also find their own healthcare and retirement savings plans. Nolley and Grounds needed to build up their savings to get started.
“There are many caveats to becoming your own boss,” Grounds said. “It wasn’t comfortable for either of us to step into real estate, but we were willing to make those sacrifices to realize our long-term dreams.”
Rogers Healy Real Estate owner and CEO Rogers Healy wasn’t known for hiring many new agents before the pandemic, but the influx of people who want to be agents is an opportunity to actively grow the company. I was thinking.
At the end of 2020, he launched a program to cover the cost of a real estate school (equivalent to about $ 1,500). It targets up to 1,000 agents who are interested in joining the company annually, with the goal of going against the general notion of most first-timers. Business shouldn’t be more than a few months, especially in today’s highly competitive market.
Healy said people need to find non-traditional ways to diverge and generate revenue in order to be suitable for a brokerage firm. In today’s environment, representing a single-family home buyer or seller is a challenge. That may mean renting an apartment or helping someone find a commercial property.
“I think it would be great if you could do that in real estate now,” Healy said. “People who frown and actually make money can go for their name.”
Many agents are doing just that and are finding a way to start a business without selling their home.
At the long-awaited career pivot, Lewisville’s BJ Connell, 58, became a real estate agent for Re / MaxDFW Associates in March after selling kitchen appliances, flooring, tiles and stairs at home for over a decade. Being a real estate agent has always been in his mind, and he really found the bright red market fascinating.
“It’s crazy, but I thought it was the best time to learn. I need a fast pace, so I have to come from a fire hose,” Connell said. drive. “I like this challenge.”
But the first few months of his business didn’t go as expected. All of his transactions completed so far have been with the people he worked with to find and apply for rental housing.
“I thought I could sell more,” Connell said. “I have a lot of debt, but if I understand how to do it and do it right, it can be profitable.”
Reese is a long-term play for Connell, who hopes these clients will become buyers in the future.
Martin explains that getting the list as a new agent is difficult, but not impossible. Many new buyers she worked with came to her to help sell her previous home and turned into her lead. She has listed seven homes for sale since the beginning.
“I think we need to work on it in a different way, and as a new agent we need to hustle in a slightly different way,” Martin said.