Reasons why real estate companies fail

Reasons why real estate companies fail

Table of Contents:

  • They don’t have an effective recruiting and retention system.
  • Lack of tools, education, and training to maintain your team.
  • They remain the main source of production for the company.
  • You don’t have the resources to keep up.
  • You do not have a good system to establish and keep track of goals.
  • Not enough brand power.

At, we speak to people, agents, and real estate companies across the country every day. Most are seasoned, hard-working, and goal-setting, but they either have stalled or are just not getting where they want to go fast enough. Why are they not thriving? We have found some common threads.
This is where we, as a franchisor, have been able to overcome them above any inconvenience that may be in your way:

We’ve compiled a list of the top 6 reasons realtors tell us they’re struggling, and often we immediately know why.

They don’t have an effective recruiting and retention system 

Prospecting and retaining real estate talent is the lifeblood of a successful real estate company. You need to be constantly recruiting and maintaining a full channel, or your business will never prosper.

Agents will come and go, and if you wait until they leave, it is too late. Most of the realtors we spoke to either don’t have the time, have a system or tools, or aren’t sure how to get agents up and running once they are recruited. When you are a REMAX franchisee, we solve all of this for you.

We have a proven plan, your development consultant works with you on real goals, and we teach you a system. In addition, we have high-level marketing and training materials to attract and launch new agents once you recruit them.

Once they enter your office, it is very important to provide value and training to prevent them from leaving. Creating a culture of support, offering them a rich set of marketing tools and materials to help them promote themselves and their business, and providing opportunities to learn and improve their skills constantly is the way to do it.

Lack of tools, education, and training to maintain your team

While some realtors do a fantastic job training their agents, others fall short, leaving the burden of continuing education mostly in the agent’s interest. This can be especially frustrating for new agents, who wait for instructions and leads, as they did in previous jobs, reaching a level of frustration that leads them to seek employment elsewhere.

While the agents themselves should seek educational opportunities, they can and should also come from you. This gives your real estate obvious value, helping you retain less experienced associates while keeping seasoned veterans up-to-date. This training and education are essential to make your agents stand out in a sea of ​​offers.

They remain the main source of production for the company

Most likely, the real estate owner has become a highly experienced real estate agent and is a good sales agent. But it can be difficult to quit acting as an agent, even though it’s a distraction that takes you away from the other activities you need to focus on to build and run your business and turn it into a real estate industry. Like, for example, the other five things on this list!

In our experience, the challenge is either you do not have enough agents or that the agents you have are not productive, so you stop selling; you need your production to keep the business afloat. At Sirmaya, we teach you how to recruit and develop productive agents, lift or remove those who are not producing, and give you systems to organize and run your business more efficiently.

This doesn’t happen overnight, but it has to happen so that you can focus your attention on building your business rather than selling. Once that happens, you will start to see your business grow instead of continuing as an agent. 

You don’t have the resources to keep up

Another problem in real estate management is that they don’t have the time or money to compete with changing technology and marketing. And in this business, being able to offer the right technology and marketing tools to your agents is necessary to make them competitive with other agents in the area and retain them in your real estate. There is no easy way around it.

Marketing and technology keep changing at the speed of light. And if you are doing it on your own, you will only get burned. That’s where you have a team of experts behind you, whose job it is to free up your time to focus on other things to grow your business.

And this does not even speak of financial investment. When you are an independent realtor, it can be a great investment to pay for all the resources that your office and agents need to compete. So why go solo when there are partners out there who can provide everything you and your agents need?

You do not have a good system to establish and keep track of goals

Many real estate companies we spoke to do not have KPIs (key performance indicators) in their company or even a basic business plan. These tools are extremely important in running a business to set growth goals, measure how you are doing along the way to adjust your activities, and know when you achieve them. Without it, your business may be faltering without any forward movement.

But what should those goals be? What are the industry standards? What are the standards for a company of your size? What are your maintenance costs, and how will you cover them? And will the company have a positive income?

At, we emphasize the importance of writing an annual business plan, and our years of experience help you set the right goals for your business and then define the activities that need to happen for you to achieve those goals.

Not enough brand power

A well-known brand can be a powerful magnet for attracting buyers and sellers to your agency, as well as for recruiting. If you are an independent realtor, you understand this after spending years building a local brand name to compete with more recognized brands in your local market.

But for marketers who don’t know or place you, not endorsing a national brand can make you work harder on ads and general recognition than you should. A recognized brand can help you stand out with confidence, but the true power of the brand is the assets, the marketing, the values, the reputation, and the support that they bring you in your local market.

Your identity does not disappear; it is amplified ten times. That is why offers so much more than just a name.

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