The United States real estate industry in late 2009 and early 2010 hit a record low and is rapidly evolving. Forward thinking companies are literally re-engineering and right sizing their companies to compete. These changes in the economy and real estate industry are spawning Owners to refine existing budgets and redirect resources—literally reviewing every line item of expense to determine the most strategic allocation of resources. Examples of action steps owners are taking to increase efficiency are:

 

·         Reshaping organizational strategies by downsizing agent rosters, eliminating resources allocated to part timers. (Quality vs. Quantity)

 

·         Maximizing use of office space by reducing number of office locations and relying more heavily on technology to create a semi-, to complete, virtual office environments.

 

·         Reduction of paper processes, via use of technology.

 

·         Acquiring “dying brokerages” or merging with other companies to increase market share and minimize competition.

 

·         Abandoning or focusing less on conventional advertising methods and relying more on technology as the purchasing process continues to become more of an online process.
 

·         Adjusting their recruiting and training programs by targeting a different Agent mindset, meanwhile encouraging or sometimes insisting existing agents to embrace change.

 

The focus on lead generation, incubation and management is becoming the core to a successful and moreover profitable real estate business with the addition of employee based agents to the traditional commission based agent mix.

 

The Economic Census which is conducted every five years (last in 2007) reports the domestic real estate industry was represented by approximately 108,651 companies, 91,813 of which were residential. Such companies range from one person operations to large companies. Due to the economy, this number has decreased considerably and companies with enough resources are acquiring less stabile companies while others are merging to increase market share. Currently, there are approximately 1.85 million active Realtors, 1.1 million of which are NAR members. In May 2006, Reator.Org posted information on its web site indicating that fifty-four percent of members are affiliated with an independent, nonfranchised firm; 32 percent are with an independent franchised company, 9 percent with a franchised subsidiary of a national or regional corporation, and 4 percent with a nonfranchised subsidiary of a national or regional corporation. The median-sized firm has 29 licensees with one office. This industry is employs professionals with a vast mixture of educational and experience levels. The real estate industry was generated about $41 billion in revenue in 2009, marking