Principals must "reset and refresh" their business

Principals must "reset and refresh" their business

09 November 2011 by Staff Reporter 0 comments

Matthew Sullivan and Simon Parker

Recent data showing fewer agents are considering leaving the industry is good news, one industry figure has said, although he has questioned whether those remaining have a business model that meets the needs of today’s market.

“It is almost like the industry has thinned out, and those that stayed have picked up what’s left of the industry, but are they really progressing in any way to bring more of that business to them,” director of Perth-based Realmark, John Percudani, told Real Estate Business.

“The thought that came to my mind is; [are] people are just holding on to old practices in a tighter market, in a smaller competing pool? Or are they taking this opportunity to stay in the industry and refresh and reset themselves.”

Mr Percudani’s comments were in response to Real Estate Business’ inaugural Quarterly Sentiment Survey, which found 86 per cent of the 358 respondents said they are not considering leaving the real estate industry in the three months to December 31.

Earlier this year, the Real Estate Institute of Australia (REIA) revealed that more than 10,000 agents had left the profession over the last 12 months to June to 2011. This was largely attributed to a challenging market, coupled with poor training and qualification standards.

“I think there is no question that a large number have already left the business, and it is great that they [agents] are all staying but are they planning on just doing the same thing?” Mr Percudani said.

“I think those [agents] that have been around for a while have got that continuity of the business, but I don’t see any big change in the way that they are doing business.”

And while it has been several months since similar reports of mass numbers leaving the industry have appeared in the media, Mr Percudani believed there is still a change occurring which could see some agents exit in the near future.

“I think in the principal level we have a generational change occurring,” he said.

“A lot of the people that have been in the industry for a long time can see that this market will remain like this for a prolonged period of time and are opting out.”

“I think there is a new generation that is being attracted to the industry that see it actually as a career and not as a default job.”

Matthew Sullivan and Simon Parker

Recent data showing fewer agents are considering leaving the industry is good news, one industry figure has said, although he has questioned whether those remaining have a business model that meets the needs of today’s market.

“It is almost like the industry has thinned out, and those that stayed have picked up what’s left of the industry, but are they really progressing in any way to bring more of that business to them,” director of Perth-based Realmark, John Percudani, told Real Estate Business.

“The thought that came to my mind is; [are] people are just holding on to old practices in a tighter market, in a smaller competing pool? Or are they taking this opportunity to stay in the industry and refresh and reset themselves.”

Mr Percudani’s comments were in response to Real Estate Business’ inaugural Quarterly Sentiment Survey, which found 86 per cent of the 358 respondents said they are not considering leaving the real estate industry in the three months to December 31.

Earlier this year, the Real Estate Institute of Australia (REIA) revealed that more than 10,000 agents had left the profession over the last 12 months to June to 2011. This was largely attributed to a challenging market, coupled with poor training and qualification standards.

“I think there is no question that a large number have already left the business, and it is great that they [agents] are all staying but are they planning on just doing the same thing?” Mr Percudani said.

“I think those [agents] that have been around for a while have got that continuity of the business, but I don’t see any big change in the way that they are doing business.”

And while it has been several months since similar reports of mass numbers leaving the industry have appeared in the media, Mr Percudani believed there is still a change occurring which could see some agents exit in the near future.

“I think in the principal level we have a generational change occurring,” he said.

“A lot of the people that have been in the industry for a long time can see that this market will remain like this for a prolonged period of time and are opting out.”

“I think there is a new generation that is being attracted to the industry that see it actually as a career and not as a default job.”

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