Author: Mark Johnson

It’s always interesting to see where people are choosing to plant their roots, and the latest migration data from the National Association of REALTORS® (NAR) for 2024 gives us a lot to think about. While a few states are clearly leading the pack in attracting new residents, the reasons behind these shifts are diverse and worth exploring.

Topping the list for net migration are Florida, Texas, and North Carolina. Florida’s warm climate and lack of state income tax continue to be major draws, primarily attracting international movers in the latest data. Texas also saw significant growth, again largely from international migration, building on its pandemic-era popularity. North Carolina offers a compelling mix of job opportunities, quality of life, and diverse landscapes, appealing to both domestic and international migrants.

Now, let’s touch on California. While it’s true that the Golden State experienced a net loss in domestic migration due to factors like cost of living, it remains a powerful magnet for international migrants, ranking second nationally. This highlights California’s enduring appeal in terms of job opportunities, particularly in tech and entertainment, and its global cultural influence. Despite domestic out-migration, its strong international appeal keeps it a significant player in overall migration trends.

Beyond the top three, other states are also seeing notable migration patterns. Arizona is attracting younger generations, while New Jersey sees international growth despite domestic departures. South Carolina and Georgia offer their own unique draws, and New York is experiencing a migration rebound. Washington state rounds out the top ten, benefiting from its tech sector and natural beauty.

The bigger picture here is that people are moving for a variety of reasons: economic opportunities, lifestyle preferences, and affordability being key drivers. States with strong job markets, appealing climates, and a lower cost of living tend to see significant inflows. However, even states facing domestic out-migration can still hold strong appeal for international migrants, underscoring the complex factors influencing where people choose to build their lives.

It’s clear that the map of where people are living is constantly shifting, reflecting evolving economic landscapes and lifestyle priorities. These migration trends have significant implications for housing markets, economies, and communities across the country.

Now we are working on our own study, “The Recruiting Insight 2024 Agent Migration Study” to be released this Spring. I can’t wait to share those insights with my readers.

Hiring new talent seems like a straightforward path to growth, right? But beneath the surface of onboarding paperwork and welcome lunches lie significant, often overlooked costs, especially in performance-driven industries like mortgage lending. A recent article in National Mortgage News sheds light on the real financial burden lenders face when bringing on new Loan Officers (LOs) – and the implications resonate deeply within the real estate brokerage world too.

The Price Tag of a New Loan Officer: It’s More Than You Think

The article highlights that the expense of hiring an LO goes far beyond just their initial salary. Did you know:

• The median cost to simply recruit a loan officer is around $1,633, and the hiring process can take a lengthy 36 to 42 days. This includes advertising, screening, and interview time – resources that could be focused elsewhere.
• Once hired, expect to invest approximately $1,000 in licensing and initial training.
• The real sting comes with “failed hires” – those who don’t meet production goals or leave quickly. This results in a direct loss of the initial recruitment and training investment, plus any bonuses paid.
• Attempting to recoup bonuses from departing or underperforming LOs can even lead to costly legal battles.
• Supporting underperforming LOs increases a lender’s overall operational costs, impacting their profitability and ability to offer competitive loan rates. In fact, total loan production expenses can average around $10,716 per loan, a figure heavily influenced by LO performance.
• It can take a staggering 1 to 2 years for a new LO to reach the productivity level of a seasoned professional. If they leave before then, that’s a significant period of lost potential.
• The mortgage industry faces a high attrition rate of 30%-35%, meaning the risk of a “failed hire” is substantial.
• The departure of an LO can even impact client relationships, with one study suggesting a potential 20% drop in the likelihood of existing clients getting a new loan from the same bank.

Corollary for Real Estate Brokerage Clients: What Does a Failed Agent Hire Cost YOU?

Now, let’s pivot this to the world of real estate brokerages. While the specific licensing and loan production metrics differ, the underlying principles are strikingly similar. A “failed hire” of a real estate agent can cost your brokerage in numerous ways:

• Recruitment Costs: Time and resources spent on advertising, interviewing, and onboarding new agents.
• Training and Mentorship: Investment in coaching, training programs, and the time senior agents or brokers spend mentoring new recruits.
• Lost Productivity: The period it takes for a new agent to become consistently productive, and the lost commission potential if they leave before reaching that level.
• Negative Impact on Team Morale: Underperforming agents can drain the energy and resources of the team, potentially demotivating top producers.
• Damage to Reputation: Agents who provide poor service can negatively impact your brokerage’s reputation and future client acquisition.
• Loss of Potential Revenue: Missed opportunities and unclosed deals due to an agent’s lack of skills or commitment directly impact your bottom line.

Implications for Your Brokerage:

Just like mortgage lenders, real estate brokerages operate on margins. Failed hires erode those margins, impacting profitability and hindering growth. In today’s competitive market, every agent needs to be a valuable contributor.

Action Steps: Mitigating the Cost of Failed Hires

So, what can you do to minimize the risk and cost of failed agent hires?

• Focus on Strategic Hiring: Don’t just fill seats. Develop a clear understanding of the skills, personality traits, and core capacities that lead to success in your brokerage.
• Implement Robust Screening Processes: Go beyond the resume. Utilize assessments and in-depth interviews to evaluate a candidate’s potential fit and likelihood of success.
• Invest in Comprehensive Onboarding and Training: Provide new agents with the tools, knowledge, and support they need to thrive from day one.
• Foster a Supportive and Collaborative Culture: A positive environment can improve agent retention and productivity.
• Leverage Assessment Tools: Consider incorporating tools like our CCI (Core Capacity Index) assessment to gain deeper insights into a candidate’s innate abilities and potential for success in a real estate role. The CCI can help you identify individuals with the core capacities that align with high performance, significantly reducing the risk of a costly failed hire.

My Conclusion?

The National Mortgage News article serves as a powerful reminder that the true cost of hiring extends far beyond the initial offer letter. By understanding these hidden expenses and implementing strategic hiring practices, including the use of insightful assessment tools like the CCI, both mortgage lenders and real estate brokerages can make smarter hiring decisions, protect their bottom line, and build high-performing teams for long-term success.

Introduction:

In today’s dynamic recruitment landscape, the best recruiters aren’t just salespeople; they’re coaches. Historically, leaders, and by extension recruiters, were expected to have all the answers. But now, success lies in empowering others to find their own. This shift requires a coaching mindset, where we focus on connection, inspiration, and growth. Just like a great coach, a top recruiter excels at asking the right questions, listening deeply, and empathizing genuinely.

Asking Powerful Questions:

Coaching, and effective recruiting, begins with creating space for the candidate or hiring manager to share. Start with open-ended questions like, “Tell me about your ideal role,” or “What are your biggest challenges in finding the right talent?” This “pure inquiry,” as Edgar Schein calls it, allows you to understand their needs without imposing your own assumptions.

Move to “diagnostic inquiry” by focusing on specific aspects of their story. “You mentioned a need for leadership skills – can you elaborate on what that looks like?” or “It sounds like this role requires a quick learner. How do you envision that person adapting?”

Finally, use “confrontational inquiry” (in a constructive way!) to challenge assumptions and introduce new perspectives. “You’ve highlighted these qualifications, but have you considered how this candidate’s experience in X industry might be valuable?” or “I understand the urgency, but what are the potential long-term impacts of rushing the hiring process?”

Remember, the more time you spend in open inquiry, the more you empower candidates and hiring managers to discover their own solutions, leading to better fits and more successful placements.

Listening with Intention:

Hearing is passive; listening is active. In recruiting, this means giving your full attention. Maintain eye contact (even virtually!), minimize distractions, and focus on understanding not just the words, but the underlying meaning.

In phone interviews or virtual meetings, pay extra attention to vocal cues. Taking brief notes can help, but don’t let it distract you from truly listening. The goal is to make the other person feel genuinely heard and understood.

Empathizing and Building Trust:

Empathy is the cornerstone of effective coaching and recruiting. It’s about understanding and sharing the feelings of others. Candidates and hiring managers often experience stress, uncertainty, and even shame during the recruiting process.

As Brené Brown says, empathy is the “antidote to shame.” Acknowledge their concerns, validate their feelings, and create a safe space for open communication. Avoid common empathy traps like comparing experiences or jumping to solutions without acknowledging their emotions.

Remember, empathy doesn’t mean lowering standards. It means understanding their challenges and helping them overcome them. Acknowledge their struggles, then motivate them towards improvement.

The Recruiter as a Transformative Leader:

As a recruiter, you don’t need to have all the answers. Your role is to guide, empower, and support. By mastering the art and science of coaching – asking, listening, and empathizing – you become a transformative leader, helping both candidates and hiring managers achieve their goals.

My final thoughts to win the day:

Great recruiters are great coaches. They move away from simply filling roles to becoming true partners in the talent acquisition process. By asking insightful questions, they uncover deeper needs and motivations. They listen actively, building trust and rapport. And they empathize genuinely, creating a safe space for open communication. This coaching approach leads to better candidate experiences, stronger hiring manager relationships, and ultimately, more successful placements. In the modern recruiting world, the ability to coach is not just a skill – it’s a strategic advantage.

Let’s cut to the chase: sales success isn’t a guessing game. It’s built on a foundation of specific, measurable skills. Consider this:

1. Business Acumen and Industry Expertise (Lead with Understanding)

We’re shifting gears. In today’s market, you don’t sell to people; you partner with them. That starts with knowing their world.

• Why It Matters:
  • 74% of buyers choose reps who get their needs. (Forrester)
  • 54% of B2B buyers won’t engage with reps who are clueless about their industry. (CSO Insights)
  • High performers double down on research. (McKinsey & Co.)
• How to Develop:
  • Become a student of your industry. Newsletters, conferences, the works.
  • Research every prospect like your career depends on it.
  • Speak their language. No generic pitches.

2. Confidence and Conviction (Project Certainty)

Now that you know their world, show them you can solve their problems. With confidence.

• Why It Matters:
  • Buyers want confidence above all else. (LinkedIn State of Sales Report)
  • Confident reps close 10-15% more deals. (Gartner)
  • 58% trust those with certainty. (Salesforce Research)
• How to Project:
  • Master your product. Know it inside and out.
  • Use stories, not just features. Show them the impact.
  • Anticipate objections. Address them head-on.

3. Disciplined Process and Consistent Follow-Through (The Backbone of Success)

Knowledge and confidence are powerful, but without a system, they’re wasted.

• Why It Matters:
  • 50% of sales happen after the fifth follow-up. (Invesp)
  • Process-driven reps outperform by 33%. (Harvard Business Review)
  • 18% more follow up time for high performers. (InsideSales.com)
• How to Implement:
  • Your CRM is your command center. Use it.
  • Stick to the process. No exceptions.
  • Follow up until it’s done.

4. Strategic Listening and Insightful Questioning (Uncover the Real Needs)

Now, with a process in place, it’s time to fine-tune your approach.

• Why It Matters:
  • Listening reps close 25% more deals. (Gong.io)
  • 57% of buyers complain about irrelevant questions. (HubSpot Research)
  • talking less is a winning strategy. (Gong.io)
• How to Enhance:
  • Listen more than you talk. Aim for that 43:57 ratio.
  • Ask questions that dig deep. Find the pain points.
  • Pause. Let them talk.

5. Resilience and Mental Fortitude (The Unwavering Drive)

Even with the best strategy, you’ll face setbacks. How you handle them defines your success.

• Why It Matters:
  • Top performers handle multiple objections. (Sandler Research)
  • Most reps quit too soon. (MarketingDonut)
  • 60 no’s are common. (Harvard Business Review)
• How to Cultivate:
  • Rejection is feedback. Use it.
  • Track your progress. Stay focused.
  • Build a resilient mindset.

By mastering these five strengths, in this strategic order, you’ll be equipped to achieve consistent, measurable sales success.

I’m committed to helping you diagnose the data and determines its implications and action steps for you to win in this market.

As leaders in the real estate industry, we’re all familiar with the “8 D’s” of real estate sales generation: Death, Divorce, Diamonds, Downsizing, Diapers, Deployment, Default, and Displacement. These life events drive transactions and shape our market. But what if we flipped the script? What if these “D’s” also held the key to attracting and retaining top-tier agents?

As part of a comprehensive industry report we are working on, we’ve interviewed agents who’ve left their sponsoring brokerage to join another. Let’s face it: agents aren’t just looking for deals. They’re looking for a home, a platform, and a partnership that fuels their success. Just like homeowners, agents are driven by change, opportunity, and the desire for a better future. That’s where the 8 D’s of Real Estate Agent Attraction and Recruiting come in:

1. Direction (Leadership):

• Sales Lens: Homeowners rely on their agent’s expertise and guidance.
• Recruiting Lens: Agents seek strong, stable, and supportive leadership with a clear vision and proven track record.
• Your Action: Emphasize your leadership team’s experience, vision, and commitment to agent success. Create a culture of transparency and open communication.

2. De-Risking (Broker Support and Compliance):

• Sales Lens: Homeowners want a smooth transaction with minimal risk.
• Recruiting Lens: Agents seek assurance that their existing business will be supported during the transition. They need marketing assistance, technology support, and a smooth onboarding process. Dissatisfaction with broker support and compliance was one of the top reasons agents sought out other sponsoring broker opportunities.
• Your Action: Streamline the onboarding process, provide comprehensive support, and demonstrate your commitment to helping agents transition, maintaining and thrive in their business seamlessly.

3. Development (Training):

• Sales Lens: Homeowners seek a home that accommodates their evolving needs.
• Recruiting Lens: Agents crave continuous professional development. They want access to advanced training, mentorship, and cutting-edge tools to stay ahead of the curve.
• Your Action: Invest in robust training programs, offer personalized coaching, and provide access to the latest technology. Highlight these resources during recruitment.

4. Differentiation (Your Niche):

• Sales Lens: Homeowners seek a unique property that fits their lifestyle.
• Recruiting Lens: Agents are drawn to brokerages with a unique value proposition. This could be a specialized niche, a strong brand, a collaborative culture, or innovative marketing strategies.
• Your Action: Define and communicate your brokerage’s unique selling proposition. What sets you apart? Showcase your strengths and highlight your niche.

5. Dynamics (Office Culture and Stability):

• Sales Lens: Homeowners want to live in a harmonious and stable environment.
• Recruiting Lens: Agents seek a positive, professional, and stable environment with collaborative team dynamics and minimal disruptions.
• Your Action: Foster a positive and supportive office culture. Promote teamwork, collaboration, and mutual respect.

6. Digital & Data Dominance (Marketing & Lead Generation):

• Sales Lens: Homeowners use digital tools to research and find homes.
• Recruiting Lens: Agents recognize the importance of a strong digital presence and seek brokerages that offer advanced CRM systems, effective social media marketing, and data-driven tools.
• Your Action: Invest in cutting-edge technology and provide agents with the tools they need to succeed in the digital age. Highlight your CRM, marketing automation, and data analytics capabilities.

7. Dollars (Financial Incentives):

• Sales Lens: Homeowners consider the financial implications of buying or selling.
• Recruiting Lens: Competitive compensation, including commission splits, revenue sharing, bonuses, and effective lead generation, is a significant motivator for agents.
• Your Action: Offer competitive compensation packages and demonstrate your commitment to helping agents maximize their earning potential. Highlight your lead generation systems even if your only system is “we train you how… .”

8. Dissatisfaction:

• Sales Lens: Homeowners are dissatisfied with their current living situation.
• Recruiting Lens: Agents are dissatisfied with their current brokerage. This might stem from outdated technology, poor lead generation, stifling commission structures, or a lack of support.
• Your Action: Conduct exit interviews with departing agents (if possible) and survey current agents to identify pain points. Address these concerns proactively and showcase your commitment to agent satisfaction.

Turning the “D’s” into a Magnet:

By understanding and addressing these 8 D’s, you can create a brokerage that attracts and retains top-performing agents. As you know, agents are not just salespeople; they are entrepreneurs seeking a partnership that fuels their growth. By focusing on their needs and providing the support they require, you can build a thriving brokerage, office or ‘teamerage,’ and solidify your position as a leader in your market.

Need help with your strategy or execution? Let’s talk…