The packed room was one indicator of the popularity of this topic! According to Nick Krautter, Principle Broker of Sell PDX Team at Keller Williams, data compiled by the National Association of REALTORS® indicates that while the typical REALTOR® is 54 years old, approximately almost half a million REALTORS® are approaching 60! Within the next decade, there is a high likelihood that many individuals may be interested in taking a breather from calls at all hours of the day and night and the high level hustle that is part and parcel of many residential real estate transactions.
Krautter’s session was sponsored by the new Center for REALTOR® Financial Wellness. The majority of REALTORS® are self-employed independent contractors and do not have well-funded pension plans. Unfortunately, many agents simply fade away from actively selling and may not even inform their clients about that fact. This may leave consumers (who on average are accessing the real estate marketplace once every 5-10 years) in a disconcerting tizzy when they discover that their favorite REALTOR® is no longer available.
Krautter suggested that responsible client service and management requires that we rethink the notion of simply leaving the business without creating a succession plan. This is not only for brokers/owners, but for REALTORS® who have a valuable asset in their hands—a database of clients they have served for years.
The Golden Handshake is a book that Krautter has written to guide retiring agents (leaving the business) and adopting agents (those interested in buying and servicing a valuable book of business leads) through the process of selling and acquiring a business. The process he outlined is straightforward. Several individuals had excellent questions, some of which were:
- How long does the referral agreement last?
- How do you choose the right agent to work with?
- How can you guarantee that you will be paid your referral fee?
- When is the best time to start the process?
- How much money can you make as a retiring or adopting agent?
All of these questions were answered in the very informative session or can be accessed through Krautter’s book, The Golden Handshake.
NOTE: The Center for Financial Wellness provides a rich source of information and tools to assist REALTORS® in creating good financial health. Check it out!