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RANCHO RESORT
MAINTANANCE POSITION

When the market got tough, real estate broker Dave Sunderman did what many industry experts advise: He hit the street.

Although he might have taken that idea too literally.

Sunderman, of Morado Canyon Realty, recently stood on the corner of East Tanque Verde and North Sabino Canyon roads with a sign saying "Will Sell You A Home For Food" and offering to donate a portion of his commissions to the Community Food Bank. Sunderman hopes the street-corner standing, which he plans to do regularly, will help carry him through a slow real estate market.

"There's a lot of agents out there that have dropped off anywhere from 60 to 80 percent" in commissions, he said.

The red-hot market of years past attracted hundreds in Tucson to the prospect of real estate riches. But now, many of those new agents are finding it difficult to adapt to a slow market, local industry executives said.

"I'm seeing a lot of agents going out and looking for second jobs," said Chip Rock, owner of Re/Max Majestic Realty. "The agents who know how to sell real estate are still selling real estate. The ones who came in during the boom, they don't know how."

Among those who may be phasing out is Rick Van Camp, of Red Horizon Realty.

Van Camp previously worked in sales for a company that rebuilds circuit breakers, but left for full-time real estate work in 2004. Now he's gone back to the electrical equipment firm and just does real estate part time.

"My old broker used to say if you had a pen and a pulse, you could write a real estate contract," he said. "Since then, it's gotten much slower."

Another newcomer, Ed Hall, of Tierra Antigua Realty, said his business is probably off by about 25 percent compared to last year. But he said he's trying to keep sales up by working longer hours and holding more open houses.

"I'm doing everything I can," he said.

As of November, there were 6,967 agents subscribing to the Tucson Association of Realtors Multiple Listing Service, roughly double the number of subscribers in 2003, according to Tucson Association of Realtors officials.

Statewide, the number of licensed real estate agents and brokers has increased by more than 40 percent from 2005, the peak of the boom, according to the state Department of Real Estate.

Newly issued real-estate licenses are good for two years, while renewed licenses stay active for four years.

Rick Hodges, CEO of the Tucson Association of Realtors, said the numbers of Realtors association members and association MLS members have not shown signs of dropping off.

"The market here in Tucson is surprisingly strong compared to the rest of the country," Hodges said. "I don't think anybody's panicking."

However, the total volume of real estate sales — and pool of potential commissions — has fallen nearly 42 percent from October 2005 to October 2007, the most recent figures available, according to the Tucson Association of Realtors MLS.

Rock, of Re/Max Majestic Realty, said that, in the current environment, he expects the ranks of real estate agents in town to drop eventually by about a third.

"The gold mine came to an end," he said.

In the boom, local real estate schools saw surges in enrollment in new agent licensing classes. Both the Hogan School of Real Estate and the Brodsky School of Real Estate had waiting lists, and the Hogan School expanded by opening a second location.

Now both schools have experienced drops of about 20 percent in enrollment in new agent classes from their respective peaks, said Jim Hogan, owner of the Hogan School, and Fred Brodsky, director of the Brodsky School.

The Hogan School saw its highest enrollment in 2005. The Brodsky School hit its peak in 2006.

At the high point, many of the new license applicants were hopeful flippers — people who wanted to buy houses and re- sell them for quick profits, Hogan said.

To try to make up for enrollment losses, the schools have been offering more continuing education classes related to current market trends, including classes on short sales and foreclosures, Hogan and Brodsky said. Hogan said his school is also working on a class to help agents in "realigning their businesses and marketing themselves" in the slowdown.

Some agents are finding that the post-slowdown market takes more work, including more weekends holding open houses, and more self-promotion.

"Three years ago, quite frankly, you could show up and probably you would have a piece of business drop in your lap," said Rosey Koberlein, CEO of The Long Cos., parent of Long Realty "That's not the business climate now."

Experience will probably also play a role in agents' success in a down market, said Robin Sue Kaiserman, a veteran Long Realty agent who has been one of the Tucson area's top sellers.

Buyers and sellers are looking for agents who know how to handle a slow market, she said. Kaiserman said she is also probably pickier about the listings she takes than many new agents.

"I want to walk into a house and tell people on the spot what they need to do and what the house is worth," she said.

Rock said agents need to work smart, rather than hard, mainly by getting out into the community.

Chris Willis, a fairly new agent with the real estate firm The Pepper Group, said he has been careful to balance real estate with other income streams, namely a job as a financial coach. As business in real estate has declined, he has been able to make up the difference.

"Now I've been able to help real estate clients . . . cope with this current market," he said.