When the real estate market hit the skids, some agents — who classify themselves as “serious” about their business — actually breathed heavy sighs of … relief. They see the real estate market’s ebbs and flows as nature’s way of separating the wheat from the chaff.

“Did we see a significant drop in the number of agents? Mercifully, yes,” said Kate Bransfield, an agent with Coldwell Banker in Santa Monica, Calif., a state where in 2008, one in every 212 residents was a licensed real estate agent. “In a hot market, agents jump into the business in droves. Most don’t have the experience, don’t know what they’re doing and don’t care. When there’s a big drop-off in the market, those agents fall by the wayside, but the professionals remain. It happens every time.”

The severe pullback in the housing market did indeed touch off a domino effect, particularly for real estate agents without strong footholds, according to Malcolm MacEwen, president and chief operating officer of Coldwell Banker Residential Brokerage in Scottsdale, Ariz. “While this has been a most severe downturn, we’re in a cyclical business,” he said. “During other significant downturns in the ’70s, ’80s and ’90s, we saw cycles that did — and always do — cause agents to move in and out of the real estate market.”

Realtors association membership declines

The numbers confirm his observations. Membership in the National Association of Realtors is down 12 percent since reaching a high of 1.36 million members in 2006. “Most of the membership declines likely have been from newcomers who didn’t have sufficient time to build their business,” NAR spokesman Walter Molony said.

Those real estate agents who remain are not only digging in their heels, but rethinking the way they do business. “Market shifts always dictate that the business changes, so the way agents are doing business needs to change,” MacEwen said. “Agents who are really serious don’t throw in the towel. They reposition themselves in a different market area.”

Cathie Ferdon, broker/owner of Showcase Homes in Belleville, Mich., is one of those agents. “I have a non-traditional business model that is geared toward the Internet,” she said, noting that she no longer advertises in newspapers. “My business model has evolved from specializing in onsite new construction sales to representing first-time home buyers and investors.”

Ferdon recognized early in the current downturn that her business had to change to survive. “The full-time or long-term agents who are successful have learned how to reinvent themselves and their business in this market,” said Ferdon, a licensed agent for 15 years and a broker for three. “They are digging their heels in to the current market because, like me, they have so much invested that they will find new ways to be productive and successful.”

Every cloud has a silver lining

Like Ferdon, many agents use a downturn to evolve. “In a really busy market, you don’t have much time to get in there and do all that needs to be done to go out on your own,” said Kandace Fredrick, owner of Kandace Fredrick Realty in Ypsilanti, Mich. “I took the opportunity of being in a slow market and worked to get my broker’s license.”

Many of Fredrick’s peers searched for a real estate market niche. “Some opened offices specializing in foreclosures or bank-owned properties,” she said.

To reach out to those agents, the West Wayne Oakland County Association of Realtors, which provides professional services for Realtors and advocacy for property owners in southeast Michigan, turned its focus to education. “Two years ago, we completely revamped our programming,” said Executive Vice President Dale Smith, whose organization offers 200 classes a year. “We’re seeing Realtors latch on to courses that will help them to expand their marketplace. Realtors are getting educated so that they can help people and learning new skills so that they can be viable in the marketplace.”

Though much of the change in the real estate business can be attributed to the burst of the housing market bubble, some of it is just a sign of the times. “The process of how people look for properties has shifted in the past four or five years,” Smith said, noting that 80 percent of home buyers go online during their search. “As a result, there’s been a growth of specialties that agents offer. We have agents who specialize in listing or sales, but not both, as well as those who handle marketing or the legal end of the business, but not both. Rather than salespeople, Realtors are becoming information brokers.”