According to KSL news AllPro Realty is going out of business.

One of Utah's largest real estate groups announced it's going out of business.  Now, dozens of real estate agents are worried they won't be getting the tens of thousands of dollars in commissions they are owed.  Many agents that worked for AllPro claim they are owed commissions from the AllPro brokerage. 



The board's president is projecting that we could lose 1,000 to 1,500 agents.  The board has recently lost about 500 agents.  Many who worked for AllPro would be able to simply move thier licenses elsewhere. 

Since the real estate market was hit over the past year by a "contraction of subprime mortgage loans, the liquidity freeze and the severe credit crunch," Many brokerages have been trying to adjust its overhead and operating costs. 

I think due to the economic conditions many more brokerages will be closing their doors in 2009.  I was one of the first agents in Utah County to join Re/max 12 years ago.  It was a new and unknown name at the time.  Compared to other brokerages the fees associated with this brand are expensive. 

My team pays a few thousand dollars per month to be affiliated with Re/max.  It is very cheap to belong to some of the lesser branded companies in Utah.  It often only costs a few hudrend dollars when you sell a home and no monthly fees with some brokerages.  This is probably why these companies are stuggling to pay their bills.  They ran on a thin margin.

The large brokerages like Re/max, Prudential, Coldwell Banker, C-21 and Era are large and well funded compaines.  I doubt any of these top 5 companies will fail.  However, If you asked me last year if Lehman Brothers brothers could fail I would have said, "no".  I guess anything is possible in this market.  I know this fact a good Realtor will stay in business.

We are seeing many traditional agents leave the brand name companies for something cheaper.  Everyone is trying to save money in these economic times.  I am brand loyal and love the Re/max system.  I have to sell a certain amount of homes each year to make staying with Re/max a viable option due to the expense. 

In 2004-6 our team was selling around 80+ homes.  In 2007 and 2008 our sold volume dropped to around 50 homes.  It will be a challenge to keep the pace of 50 homes sold in 2009.  I believe our industry is in for much more difficult economic times in 2009.  In the last quarter of 2008 most of my sales have been bank foreclosures/short sales.

Our industry is going thru a major cleanse and many more Realtors will be forced to find new jobs in 2009.  I hope those Realtors that leave the business are able to find jobs.  I am sorry to hear anyone losing their jobs whether it's my competition or not.  These people have families and hopes and dreams like anyone else.  My heart goes out to all those financially struggling this holiday season.   

Those Realtors that plan to remain in business thru 2009 . . .  fasten your seat belt.


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Welcome to my blog!  I manage Team Teasdale of Re/max Results Realty.  We are located  in Spanish Fork, Utah.
Our group combines proven traditional real estate practices and represents the leading edge in the future of real estate marketing by merging internet technologies, service, communication, information and analysis with those traditional practices to provide our clients with an exceptional real estate experience and superior marketing.

Paul Teasdale, Associate Broker
ABR, CRS, e-PRO, QSC, Finance BYU
14 Years Experience, 750+ Homes Sold
Team Teasdale, Utah County Real Estate
Phone: 801-491-7653

http://www.UtahCountyListings.com
Email