2023 proved to be a challenging year for most real estate agents in Boston. It was marked by a worrying trend of multiple agents exiting the industry or taking part-time side hustles. The root cause? A significant struggle to gather enough quality leads and close enough deals to sustain a viable living. In this highly technical and precarious landscape, one solution shines through: aligning with the right brokerage.
In this Article...
Partnering with the wrong brokerage during a low client lead and scarce inventory environment creates missing out on many opportunities through no fault of your own. When we had low interest rates, the market was booming, and it didn’t take as much time or effort to sell or rent high-end properties. Right now is especially stressful for most agents who have been in the Boston real estate scene for less than five years. In the real estate world, the role of a well-functioning full-stack real estate ecosystem cannot be overstated.
The days of traditional brokerages are waning
Numerous national and local real estate brands simply didn’t spend enough on building their pipelines for leads. The small cracks have now turned into chasms. Most agents are struggling to get enough leads, and are spending far too much time trying to prospect instead of showing and closing. Having an incredible online presence and top Google ranking for numerous keywords acts as an anchor for agents, providing essential leads and listings so they can stay in the game and keep their closing skills sharp. Real estate is about momentum. Most agents will tell you, if you get rusty due to the lack of showings then your closing ratio suffers. There is also the matter of support and training combined with cutting-edge technology. Having one-on-one in-person support from industry leaders is especially crucial in a competitive market like Boston.
In contrast, many agents whose brokerages leave them to manage on their own often face overwhelming challenges. They lack the necessary resources and support system that a well-established brokerage offers. Most brokerages will push agents very hard to make hundreds of phone calls but do not provide them with any quality inbound sales and rental listings. Let’s be honest, it’s tough to make phone calls all day and night and not be provided with great showing and closing opportunities. In most instances, you will witness that a brokerage is not willing nor interested in developing the technology or skills to keep their agents going in a viable manner. So, what should an agent look for in a low listing and scarce inventory environment? What could help them get more reps on the closing field?
What to Look for in a Brokerage
When selecting a brokerage, there are several key factors to consider:
- Technological Resources: Modern brokerages must develop their own real estate syndication platforms. Ideally, fully implemented with AI-powered technologies. These cutting edge tools must include but are not limited to: real time pricing, advanced data charts, modelling algorithms, customer alerts, and advertisement tools to maximize efficiency and productivity. This follows the Maximization of Time Principle (MTP)- every second counts. Having advanced technologies that gets your listings out to the most locations on the internet in the shortest period of time possible allows agents to focus on more showings and closings.
- Strong Training Programs: Comprehensive training is fundamental for both new and experienced agents to stay ahead in the market. Even seasoned pros need continuous training to keep up with market trends, legislative and legal updates, and evolving sales strategies. Our real estate industry never stops innovating. Make sure you are being provided with advanced training resources. It is important to ask yourself if your broker and/or manager is in the office daily and delivering quality training on new strategies to keep you ahead of the curve throughout your career.
- Exclusive Listings: Time is a precious commodity in real estate, and cultivating a reliable network of property owners requires years of consistent networking and relationship-building. You can set yourself apart by having access to highly sought-after, premium listings, even when general listings may be easily found. This is where the depth of your brokerage’s network and the sophistication of their technological capabilities become pivotal. You might want to ask yourself- how does our company website work? How many leads does it get each day? Who is given those leads? What accolades has our platform received? When will our brokerage receive any public accolades for outstanding technologies, marketing materials and quality data?
- Impeccable Track Record: Based on businesses that opened in 2002, 20.8% of businesses fail within the first year, according to the Bureau of Labor Statistics. 40% of businesses fail within the first three years, 49.9% within five years, 65.8% within 10 years, 73.3% within 15 years, and nearly 80% within 20 years. However, those businesses that have been open and thrived for over 20 years have an exceptional amount of knowledge, technical skills and intellectual property that often gives them a huge winning edge. Their accumulation of brand awareness and serving hundreds of thousands of customers usually provides a superior level of customer on all sides of real estate. In 2024, you are going to want to work with the best: investors, landlords, property owners and renters. The best clients know and usually flock to the winning platforms. So perhaps having a better group of clients by partnering with a brand that has an impeccable long standing track record of success can transfer into far more deals for you.
The Pitfalls of the Wrong Brokerage Alignment
Choosing the wrong brokerage can be a major setback for any real estate agent's career, particularly in a market as competitive as Boston's. There are a lot of brokerages out there that will promise you extensive training but when you call for help you get their voicemail time and again. Where is your broker or manager? Is your broker actually ever in the office? Do you even have an office or is someone peddling you that “virtual office” nonsense. A lot of brokerages will tell you about their great national brand but what LOCAL presence do they have? What type of influence and impact is your brokerage delivering to the real estate community? How many people are in the office to exchange the latest ideas and hot areas to prospect? There are a lot of real estate agents out there today that suffer from social isolationism and operate from a position of only understanding what they have learned or believe to be true. The bottom line is a well-functioning real estate office operates where great real estate agents come together and share knowledge and ideas so that everyone benefits and grows faster.
Too many new agents are cornered into only handling first-time home buyers and relying on their "sphere of influence" to get going in real estate. What many of these real estate companies simply don’t tell you is what happens when you run out of your sphere of influence? It's common for many agents to be unaware of the potential for fast consistent income that comes with handling high end rentals through a quality real estate platform. Do you have an interest in becoming a landlord someday and owning cash flow properties? Who is going to teach you the intricacies of becoming an investor? You might want to find a proven test of time leader that has ample the experience required to teach you both building and creating multi-family investment sales.
A Full-Service Real Estate Company is the Solution
This is why joining a full-service real estate company, exceptional in both rentals and multi-family sales, is crucial. Such a company not only provides a broader spectrum of opportunities but also imparts the necessary skills and experiences to excel as a real estate agent and investor.
Additionally, brokerages that fail to provide the necessary support, be it administrative assistance, marketing resources, or guidance on complex transactions, leave their agents to fend for themselves. Even having functioning keys and updated data can make all the difference in the world for you to make tens of thousands of extra deals in one year. To make exceptional monies in 2024, you are going to want to show properties that few other platforms can deliver. You are going to want companies that have their own Private Owner Portals that allow both huge and small property owners alike to update their data in real time so you can go out and show and close more. You want listings and leads coming in from all different angles. Without having working with a full stack real estate ecosystem you don’t have the competitive advantages that other agents are provided. When your forced to keep dipping into your pocket and spending more time and money to get less and less – bad things can happen to your morale. This situation often leads to increased stress and dissatisfaction, making it difficult for agents to sustain their enthusiasm and commitment to their careers.
Steps to Take Now
For agents currently struggling, it's crucial to:
Evaluate Current Brokerage: Assess if your current brokerage aligns with your needs and offers the necessary support to thrive in the current real estate marketplace of 2024.
Inquire with Potential New Brokerages: Ask about their training programs, CRM tools, technology, and culture. Ask about their website traffic, SEO ranking and number of daily leads. It is important for you to ask detailed questions. If you feel that a broker or heavy handed recruiter doesn’t give you specific stats in writing – it might be time to check out other options. Will they guarantee you leads in writing? If so how many leads will they give you? What kinds of leads are they? It's up to you to ask the hard questions- and to run from brokerages that provide unsatisfactory responses.
Aligning with the right brokerage in Boston is more than a change of workplace; it's a strategic move towards far greater opportunities and success. Now is probably the best time to see what other brokerages offer as an overall platform. Boston real estate agents should actively seek a brokerage that not only aligns with their needs but also amplifies their skills and maximizes every opportunity.
We invite you to share your experiences or ask questions about finding the right brokerage in Boston.
Your transition to a new brokerage is often a step towards increased opportunities, enhanced support, and potentially a significant increase in overall commissions. Perhaps your just looking to do more deals in less time? It could also be you are satisfied with the money you have made over the past several years but want to make that money with far less work each week? Would it be possible for you to feel better and healthier if you spent less time marketing and more time working with customers? Consider factors like true lead generation, inventory access, key access, real-time training modules, and broker involvement in your success. If you don't, you could be short changing your career.
Boston Pads, a pioneer in the real estate market, offers unparalleled insights into real estate opportunities in Massachusetts. Our longstanding track record of various successes been featured in countless media outlets across all mediums. Trust in a proven leader to guide you towards closing more deals and achieving success in today’s ever changing real estate market.
Published January 22, 2024
Demetrios has pulled together the largest apartment leasing team in the Greater Boston Area and is responsible for procuring more apartment rentals than anyone in New England – with over 130k people finding their housing through his services. Demetrios is an avid real estate developer, peak performance trainer, educator, guest lecturer and motivational speaker.