Wednesday, October 25, 2006

Have they lost their minds??

Before I answer, please read this letter to the Members of the Minnesota Association of Realtors. (hat tip to Greg Swann for finding this)

As a "Trade Association" we must defend and look out for the general welfare of the industry. This means helping members understand that it may be time for them to make a career adjustment so as not to harm the structure of the industry for those pursuing it as a career. We're not talking about different service structures; they are part of what consumer's desire. Our concern is that the value of utilizing the services of a real estate broker/agent will erode because of agent over saturation.

Okay, now I'll answer. No, they haven't lost their minds. Along with Mr. Swann I think this letter goes into the deeper problem of the real estate brokerage business model. More specifically the broker/agent relationship business model.

I do not think that Arizona is facing whatever dilemma that the fine folks in Minnesota are facing for the simple reason of the continued expected growth in the state of Arizona. For instance, in my part of Mohave county there is approx. 75,000 to 100,000 people in the area, I've heard that in 20 years this same area will house over 1,000,000 residents. So I doubt I'll be writing a similar letter to my Association Members anytime soon.

However, along this time line, I'd love to see improvement in the broker/agent business model. Brokers... you know what I'm talking about. If not, please read the entire linked letter and see Greg's post on this subject.

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