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2008 Outlook: Optimistic overall, brokers continue to face tough market

(Boonton, NJ, January 4, 2008) — The difficult market was the business challenge mentioned most often by brokers who took part in the Real Estate Broker’s Insider annual reader survey.

Two-thirds of the respondents cited the soft market as their biggest challenge in 2008, while nearly half mentioned pressures on profitability.

By contrast, only 20 percent pointed to recruiting as a challenge. In healthier markets, recruiting was a top concern for brokers.

So how are brokers responding to these challenges?

A third of the respondents say they’ll look to cut costs in 2008, and a third say they’ll add agents or otherwise look to boost their market share.

A quarter of brokers say they’ll focus on education of both agents and consumers as they battle through the slowing market.

And a small minority of brokers say they’ll seek out new revenue sources in 2008, whether it’s by adding mortgage and title services or diversifying into commercial real estate.

One intriguing development from this year’s survey: Brokers made scant mention of discounters. In years past, price cutting was a major concern of Real Estate Broker’s Insider readers.

But with Foxtons out of business and ZipRealty and other discounters struggling, the threat of cutthroat cost competition seems to have eased.

The full text of the survey report, “2008 Outlook: Tough market top challenge for brokers,” is available online at the Real Estate Broker’s Insider website, http://www.BrokersInsider.com/rebisample.php or by phoning the publisher at 1-800-232-4317.

About Real Estate Broker’s Insider

Real Estate Broker’s Insider provides agency broker/owners with actionable news and information on managing their businesses for greater profitability.

Website: http://www.BrokersInsider.com