The downturn in real estate has emptied more than investments, bank accounts and houses. It's also substantially trimmed the rolls of real estate professionals and their associations as well.
"We've had major drops," said Linda McClellan, president of the Clark County Association of Realtors, referring to the 88-year-old organization's membership.
In 2009, the Clark County Association of Realtors had some 1,400 professionals among its ranks, down from a peak of 2,200 in 2005, according to McClellan. For 2010, the association is bracing for another 200-member drop.
Other real estate organizations also reported drops in membership, although not as drastic as CCAR's. The Oregon and Southwest Washington chapter of Certified Commercial Investment Members, or CCIM, usually has about 300 members, according to chapter president Anita Rifberg. In 2009, Rifberg reported a slight dip, with membership dropping below 300.
Realtor association directors and real estate professionals indicate the continuing uncertainty in the commercial and residential sector was the root cause of the decline in membership.
"We feel a trend of agents thinking this is a good time to leave," McClellan said, noting that many longtime real estate agents are opting to retire while struggling younger agents retool for other jobs.
Whatever the individual reasons, a halving of membership rolls has taken its toll on CCAR's coffers, as well as realtor perks once-commonplace during the boom years. "The theme this year is ‘No, it's not in the budget,'" McClellan said.
On the CCAR's nix list: travel spending, open bar tabs and nearly anything else that requires a cash outlay.
"I'm not spending money," McClellan said.
Reduced spending is a familiar refrain as realtor groups retool to both meet their members' needs and stay afloat in a still-turbulent real estate market.
Though realtor associations, such as Commercial Real Estate Women Portland, hasn't completely eliminated social mixers such as golf tournaments and lunch programs, it has looked to sponsors to pick up more of the cost, said Linda Fisher, CREW's chapter president.
In past years, sponsorship levels started at around $2,000. This year, realtor groups are lucky to get a quarter of that amount for an event sponsorship, which means more sponsors are needed to float some events. "A lot of companies can budget $500 rather than $2,000," Fisher said.
Ditto for CCAR. McClellan said she's asking for – and often receiving – sponsorship for retreats and political activities. "The resources are out there, you just need to tap into it," she said.
Finding networking opportunities, as well as staying abreast of industry changes, are a must in today's turbulent economic climate, real estate professionals say.
"You have to stay connected in this market," Rifberg said. "If you allow yourself to drop off the radar, you're in trouble."
Lynn Krogseng, a five-year real estate agent with Keller Williams in Vancouver, rests her success on networking groups, saying that agents don't stumble upon business in this market.
But while connections and networking are lifelines for real estate professionals struggling to make deals in a tough market, other tools offered by shrinking realtor organizations are sometimes just as important.
In response to an increasing number of commercial real estate foreclosures, CCIM is offering a troubled assets class to help members deal with the complexities involved in short sales, bank-owned sales and other distressed properties.
In the residential market, reductions in paid-employee hours and the introduction of volunteer staff has become essential for the continuance of member programs and services.
For example, McClellan recently replaced a full-time government affairs director, typically a 40-hour-a -week position, with a part-time staff member.
And Terry Wollam, CCAR's president elect and chair of the chapter's Government Affairs committee, now works with a staff of volunteers to stay abreast of legislation that may affect real estate conditions – such as a Washington state proposal to impose a service tax on real estate commissions.
CCAR's staff members aren't the only ones trying to do more with less.
"Only half jokingly, I'd say I'm working twice as hard for half as much money," Krogseng said.
Some of the in-the-trench issues that realtors like Krogseng are up against include: fewer comparables for price assessments, reluctant sellers and adjustable mortgage resets. And because of declines in realtor association operating budgets, it looks like Krogseng can expect to see less help in the form of legislative advocacy, networking opportunities and education in the coming months – not more.
Meanwhile, McClellan pondered over the glut of real estate agents during the market's heyday and whether that number was ever sustainable. "I often wondered how people were making it," McClellan said.
