50% OF REAL ESTATE AGENCIES AND REAL ESTATE BROKERS WILL DISAPPEAR!
This prediction, which is out of tune with the real estate industry, is that of PATRICE GROLEAU, owner, with his spouse DEBBY DOKTORCZYK, of the specialized real estate agencies McGILL IMMOBILIER, Quebec’s leader in the sale and marketing of new condos, and of the world luxury giant in the province, the real estate agency ENGEL & VÖLKERS. Two exceptionally dominant real estate agencies in Quebec in their respective specializations.
“There are currently around 13,000 real estate brokers in Quebec, but with the pandemic that is leading to some career shifts in the most affected sectors of the economy combined with media coverage of the strength of the real estate market, becoming a broker seems to be the perfect mirage, “the song of the sirens”. We will quickly go up to 16,000 brokers in the next 2 years but… because there is a “big but”! It will then be a free fall for the next 5 to 10 years until we stabilize at around 8,000 brokers!” Mr. Groleau goes on.
“Unfortunately, there is a myth about the ease of being a broker, too many future brokers minimize the involvement in time, money and necessary skills, this is the field of disillusionment with average salaries under 50,000$ before the many inherent costs. Our estimates show that about 50% of new brokers stop in the first year and 90% are no longer there at the end of year 2. The OACIQ and QPAREB will provide different figures because unfortunately they cannot differentiate between active licenses whether from an “administrative” point of view versus an active full-time broker in the field. It is obvious that someone who realizes that the field is not for him but who has just followed the long training course at great expense will not cancel it immediately but will get tired of “dragging it out” often for a few years. »
WHAT IS THE FUTURE OF THE BROKERAGE INDUSTRY?
“The future inevitably lies in selection and specialization. Find me an industry/company that hires 100% of candidates other than real estate brokerage? We are targeting 1% of brokers at ENGEL & VÖLKERS and we estimate that only 5% of real estate brokers have the profile we are looking for at McGILL REAL ESTATE. Unfortunately, the culture of some investment funds that put shareholders before their brokers but especially before their clients will hit a wall. Engel & Völkers is the only non-American international luxury banner with private equity. For brokers and agencies, everything must be centered on clients, but agencies must also put their brokers first before the obsession with shareholder profitability. We invest an average of +33,000$ annually in each of our brokers in order to equip and support them in an optimal way and allow them to offer this high level service of ultra-VIP concierge type for our exceptional clientele and our promoters. I challenge any agency to show me that they offer a better quality/price ratio to their clients and real estate brokers than our agencies. We have revolutionized for years the concept of “Real Estate Boutique” from where we are true real estate ambassadors for the city, the province and the country! With Engel & Völkers real estate shops strategically positioned in Montreal and Quebec City, as well as on the South and North Shore, the West Island, the Laurentians and the Eastern Townships. Not to mention our spectacular sales offices for our +33 new condo projects / phases.
We have a long-term vision, an unequalled transparency with our clients and brokers. This is the reason for our dominance in our two areas of specialization. Obviously we are not a NPO but the profitability is reasonable compared to the huge investments and risks we have been taking for almost 20 year, and don’t forget our domination. I like to say that this is the viable and sustainable version of entrepreneurship. That is why we are also major partners and ambassadors of the Fondation du CHU de Sainte-Justine and also of the CHUM Foundation with far-reaching charitable implications. I am convinced that we are the agencies that give the largest percentage of their revenues back to the community.
Approximately 1 in 3 Montrealer is an immigrant. The number of newcomers is expected to triple annually post-pandemic. Therefore, a truly powerful international network, not only in terms of numbers but also especially in quality, which is more than ever a necessity. Selection + Specialization… We must not fall into the generalist trap of being everywhere and in everything. We have to be where it counts, alongside our exceptional clientele with real estate needs and projects”, Patrice Groleau reminds us.