Culling The Herd

They say that every farmer knows the importance of getting rid of the sick and the old.

There is some talk going around in the real estate world that the changes in the Canadian market will result in less agents in 2009. According to CREA there are 97,000 agents in Canada. Although it is hard to find a number it is estimated that we have over 1,300 real estate agents here in the Waterloo Wellington area. Those 1,300 agents were responsible for 11,426 SOLD properties in 2008. That works out to just under 9 deals per agent or less than 1 deal a month.

Here is where the numbers get interesting. Those estimated 1,300 agents were responsible for just over $3 Billion dollars in real estate SOLD. That works out to $150 Million in commissions paid or $115,000 per agent for the year. Not to shabby for less than 1 deal per month.

So what happens when we start to see the decreases in SOLDS like we have for the last 3 months? Well the way the traditional real estate works, less SOLDS means less money for the agents. My experience with agents is that taking anything less will not happen. So the natural selection process will take over and ensure that the weak and feeble will not survive.

Why do they feel the need to band together? What is the mentality to this herd? Here is an interesting perspective.






In listening to the "psychology" of the herd it seems only natural that Private Sale is growing at the rate it is. Don't look now but you may have a star on your belly.

Welcome to the Private Sale Revolution.

M