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#239780 - 07/24/08 01:14 AM
Re: The Real Estate Market is BAD!!!
[Re: SoniqueAgent]
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Member
Registered: 07/19/08
Posts: 36
Loc: New York, NY
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hope you're knowledgeable in distressed assets, i.e. foreclosures and REOs. from what i've seen, there's a lot of bottom-fishing going on, people hoping to snatch up properties on the cheap, so if you can specialize in foreclosures and REOs you'll have a great market right now
________________________________
www.ForeclosureLook.com
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#239897 - 07/24/08 04:19 PM
Re: The Real Estate Market is BAD!!!
[Re: Perky_REALTOR]
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Member
Registered: 07/14/08
Posts: 357
Loc: Dallas, Fort Worth - TX
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#239940 - 07/24/08 08:52 PM
Re: The Real Estate Market is BAD!!!
[Re: DeanMesaAZ]
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Mod Squad
Major Contributor
Registered: 11/27/06
Posts: 7685
Loc: PA
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I talked to a gentlemen the other day who, when he discovered I was a Realtor, laughed and said, "Oh my gosh the easiest job in the world! Just plant a sign and collect a huge check!" I don't know whether to laugh or cry. LOL.
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#239984 - 07/24/08 11:08 PM
Re: The Real Estate Market is BAD!!!
[Re: Perky_REALTOR]
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Member
Registered: 07/14/08
Posts: 357
Loc: Dallas, Fort Worth - TX
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I don't know whether to laugh or cry. LOL.
He stopped laughing as soon as I quoted him a few statistics about Realtor incomes from the NAR. Especially the statistics for new agents (less than two years experience.) I also asked him how much he'd have to pay if he was writing his own health insurance check each month and creating his own retirement fund. At that point he really started scratching his head. 
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#240237 - 07/25/08 08:36 PM
Re: The Real Estate Market is BAD!!!
[Re: super realtor]
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Veteran Member
Registered: 11/25/06
Posts: 644
Loc: Georgia
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Look, there is always a market. It's either a buyer's market or a seller's market, but it is a market. Our challenge as agents IMHO is in positioning our businesses to take advantage of the market at hand. I am grateful (and certainly not boastful) for the blessings of a steady stream of buyers despite the fact that I carry no listings at this time.
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#240490 - 07/27/08 01:36 PM
Re: The Real Estate Market is BAD!!!
[Re: SoniqueAgent]
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Member
Registered: 07/25/08
Posts: 39
Loc: Kansas
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One thing I would add is that you need to have a certain amount of funds set aside for the first year for marketing yourself. Figure out home much you can afford to spend in marketing yourself and getting leads before you start. Many people think they are just going to get their license and BANG they will have a sale. You have to work hard and have the budget to market yourself unless you have an incredible SOI that is ready to buy now!
Paul
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#240555 - 07/28/08 12:36 AM
Re: The Real Estate Market is BAD!!!
[Re: KCPAJ]
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Member
Registered: 07/14/08
Posts: 357
Loc: Dallas, Fort Worth - TX
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One thing I would add is that you need to have a certain amount of funds set aside for the first year for marketing yourself. I wouldn't suggest that any new agent set aside a large part of their initial budget for marketing. Some brokers encourage new agents to do lots of mailings and those costs add up very quickly. And mailings aren't particularly effective without repeated exposures... perhaps six months of mailings to a targeted farm area. Even with bulk postage rates, sending postcards or brochures through the mail gets very expensive very quickly. An effective marketing tool I've seen many new agents use is to invest in some kind of inexpensive personalized gift... like the refrigerator magnet or calendar or sports schedule. The type of thing people can stick on their fridge or desk and make use of. Most of the postcards we mail out get tossed right in the trash. But a refrigerator magnet handed out at your open house or to your neighbors stands a much better chance of being saved... The BEST marketing for new agents is to invest in very professional business cards. Invest in a professional photo... not a digital snapshot taken by a co-worker. Perhaps even have some nice brochures made up that you can hand out. Then MEET as many people you can and hand out your business card and/or your brochure.
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#240570 - 07/28/08 03:35 AM
Re: The Real Estate Market is BAD!!!
[Re: Texas Agent]
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Major Contributor
Registered: 11/12/06
Posts: 1623
Loc: The Beach
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One thing I would add is that you need to have a certain amount of funds set aside for the first year for marketing yourself. I wouldn't suggest that any new agent set aside a large part of their initial budget for marketing. Some brokers encourage new agents to do lots of mailings and those costs add up very quickly. And mailings aren't particularly effective without repeated exposures... perhaps six months of mailings to a targeted farm area. Even with bulk postage rates, sending postcards or brochures through the mail gets very expensive very quickly. An effective marketing tool I've seen many new agents use is to invest in some kind of inexpensive personalized gift... like the refrigerator magnet or calendar or sports schedule. The type of thing people can stick on their fridge or desk and make use of. Most of the postcards we mail out get tossed right in the trash. But a refrigerator magnet handed out at your open house or to your neighbors stands a much better chance of being saved... The BEST marketing for new agents is to invest in very professional business cards. Invest in a professional photo... not a digital snapshot taken by a co-worker. Perhaps even have some nice brochures made up that you can hand out. Then MEET as many people you can and hand out your business card and/or your brochure. I agree 100%. While new agents should have money set aside to live on, I don't in a million years recommend that they spend it on self-promotion. There are SO many things a new agent can do to drum up business that cost nothing or next to nothing and are far more effective than simply spending money.
_________________________
Jennifer Allan, GRI RE/MAX Hall of Fame Author of Sell with Soul, Creating an Extraordinary Career in Real Estate without Losing Your Friends, Your Principles or Your Self-Respect
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#240588 - 07/28/08 09:40 AM
Re: The Real Estate Market is BAD!!!
[Re: Jennifer Allan]
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Major Contributor
Registered: 04/12/08
Posts: 4725
Loc: Vermont's North-East Kingdom
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Entering Real Estate in a down market is good. Things can only get better.
Colleages are more willing to give you the time of day.
Entering in a brisk market leads you to believe it will never get sour. 90% (or more) of the bright young upstarts who entered in 2005 to 2007 around here are now gone. I hardly got to know you. As the Market dried up, so did they . . . . just dried up and blew away !
They had a few good easy Transactions but never learned how to deal with adversity, or fight to keep a deal alive. Tending to a Transaction that is in the I.C.U. requires an ability to identify and address the tiniest of issues.
In a brisk Market, we can afford to let more Transactions just die and fall by the wayside. A down market gives us time to "Keep Hope Alive" and devote more effort to searching for ways to get to the Goal Line (to mix a few metaphors).
I think if there is a difference in the Genders, as far as they apply to Real Estate, it is that Women (some) are more nurturing and they are often willing and able to identify which of the miriad of details that could affect the life of an embryonic little Transaction, and address them. And they also are usually a bit more patient then Men (some). That's also a valuable asset; especially in a down market. I admire both attributes.
Our past "good times" may have spoiled many prospective long term Agents by encouraging them to neglect to develop their own inate attributes. And when a Good Market returns, and if you're still here, you'll be here to recognize and participate in it.
Just some thoughts on Monday Morning. I've got some Guys in the I.C.U. right now !
_________________________
Dale C. Hittle of GOLDEN RULE PROPERTIES in Glover, Vermont Where We're Always Striving To Put Together "THE FAIR DEAL"
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#240605 - 07/28/08 11:14 AM
Re: The Real Estate Market is BAD!!!
[Re: Norcal Jim]
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Veteran Member
Registered: 03/20/07
Posts: 1090
Loc: South Carolina
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I love this blog about how Realtors get paid too much http: //www.realestatewebmasters.com/blogs/malok/2119/show/ Thanks... that is kick [censored]!
_________________________
Realtor Extraordinaire, ABR, E-Pro
Keller Williams Realty Upstate South Carolina
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#240820 - 07/28/08 09:41 PM
Re: The Real Estate Market is BAD!!!
[Re: Agent Jim]
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Member
Registered: 07/14/08
Posts: 357
Loc: Dallas, Fort Worth - TX
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I just wanted to add one more thought about selling in a 'brisk' market. It's true that many agents got into the business during the boom times. But I'm not sure the average new agent who got their license during the boom was more successful because of the brisk market. In fact, I was in Washington, DC, when the boom got so booming that it was no longer a boom, but shear madness. Multiple offers with crazy bidding wars, escalation clauses, contracts with all contingencies being tossed out... including financing, home inspection, etc... That was VERY difficult for even very experienced agents to deal with. Were the rising prices nice to see? Of course. Was it 'easy' to work that market? Well, it was nice to be the listing agent. Working with buyers was an absolute nightmare.
While there is no 'easy' time to enter into this profession, I think the 'ideal' time might be in a calm market... neither boom nor bust. But in truth, those destined for success, who do the right things in the right ways the way we are trained to do, will succeed in ANY market!
Good luck!
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#240886 - 07/29/08 07:21 AM
Re: The Real Estate Market is BAD!!!
[Re: Greene]
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Member
Registered: 06/27/08
Posts: 17
Loc: PA
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[quote=Greene]Look, there is always a market. It's either a buyer's market or a seller's market, but it is a market. Our challenge as agents IMHO is in positioning our businesses to take advantage of the market at hand. [/quote]
This is what I tell people who suggest I'm insane/in denial/an idiot for making the career change now. How often does it happen that the inventory of houses is perfectly suited to the market for them?
A group of agents from one brokerage recently did a 6-week seminar designed to bring them back to basics and re-instill the enthusiasm they had as new agents. They sold a LOT of real estate over the course of the program. I figure I just need to do what they did :-)
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#243786 - 08/11/08 03:20 PM
Re: The Real Estate Market is BAD!!!
[Re: SellMyDigs]
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Junior Member
Registered: 08/11/08
Posts: 4
Loc: Indiana
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I am a new agent but I do believe we are overpaid. How many jobs can you get if you DO NOT have a college degree and still make 65000-100000+ a year, not a whole lot. Most people that are making 100000+ a year has to pay 200000 or more in student loans and even then will have a starting salery of only 25000 per year.(Lawyers, doctors, pilots)It takes years in those industries to make good money and it takes 12-20 years to pay off thier student loans. A REALTOR only has to complete high school and pass a short class. Also, last I checked, most companies have gotten rid of pensions and medical insurance because they are costing the companies too much money.
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#243808 - 08/11/08 05:07 PM
Re: The Real Estate Market is BAD!!!
[Re: pilot00]
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Veteran Member
Registered: 03/20/07
Posts: 1090
Loc: South Carolina
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I am a new agent but I do believe we are overpaid. How many jobs can you get if you DO NOT have a college degree and still make 65000-100000+ a year, not a whole lot. Most people that are making 100000+ a year has to pay 200000 or more in student loans and even then will have a starting salery of only 25000 per year.(Lawyers, doctors, pilots)It takes years in those industries to make good money and it takes 12-20 years to pay off thier student loans. A REALTOR only has to complete high school and pass a short class. Also, last I checked, most companies have gotten rid of pensions and medical insurance because they are costing the companies too much money. Well great, I hope you work for a discount company to match your moral aptitude. Education,debt,other industries, color of underwear, etc., does NOT make a difference as to what someone deserves in pay. What about a natural musician who entertains and earns millions? What about the consultant who has no formal education but earns millions. It is the value both perceived and not perceived, that determines the pay. If I can help generate a million bucks for a million dollars house, I deserve a cut! What about the agent who saves his client hundreds of thousands of dollars and loss revenue by revealing a potential downfall in a site selection? What about foreclosure agents? What about bpo agents? The value of helping someone sell a piece of America, a piece of a local town, a hard to sell property, etc. can be almost priceless. Plus you obviously have forgotten about the potential for hedging against the potential losses of trying to do it yourself. As someone here has in there signature "If you think its expensive hiring a professional, wait until you hire an amateur!" Good luck on the listing presentation when youre asked about commission. How will you justify yours, even when its discounted? Youre a new agent? Keep us posted on who you work for, and how much youre rebating after working with a buyer for three months and paying a referral fee!
Edited by Merkaba (08/11/08 05:24 PM)
_________________________
Realtor Extraordinaire, ABR, E-Pro
Keller Williams Realty Upstate South Carolina
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#243819 - 08/11/08 06:44 PM
Re: The Real Estate Market is BAD!!!
[Re: super realtor]
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Junior Member
Registered: 08/11/08
Posts: 4
Loc: Indiana
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Look, I am not trying to start a debate, everyone has a right to thier opinion. Let's say prices were up 50 to 100 percent in one year like the prices were in many areas from 2002-2006. In one year your salery doubled for the same amount of work. The paperwork and advertiseing prices did not change, the rest was pure profit. What was the cost of living increase durring those years?...something like 3-5%. My point is, like it or not, your commissions checks are more now than what they were in 2000 when prices were lower. yes prices are down in some areas but they still have not fallen down below 2000 numbers. I'm a new agent but have been investing in real estate for over 10 years. Markets will go up and down but in the end real estate allways goes back up, and therefore so does your salery (at least more than the cost of living index) As agents we must learn to be good with handling our personal finance so that when times are bad we have money and investment properties avalable to live off of.
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#243827 - 08/11/08 08:09 PM
Re: The Real Estate Market is BAD!!!
[Re: pilot00]
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Major Contributor
Registered: 04/12/08
Posts: 4725
Loc: Vermont's North-East Kingdom
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This Industry has been waiting for someone who'll work for Free and compensate for the rest of us Good-for-Nothing; Money-Grubbing; Blood-Sucking Leeches.
I'm glad Our Benefactor has finally arrived !
No offense intended nor taken. Good luck in INDIANA !
_________________________
Dale C. Hittle of GOLDEN RULE PROPERTIES in Glover, Vermont Where We're Always Striving To Put Together "THE FAIR DEAL"
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#243842 - 08/11/08 09:10 PM
Re: The Real Estate Market is BAD!!!
[Re: Vermont]
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Junior Member
Registered: 08/11/08
Posts: 4
Loc: Indiana
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what if car dealers raised prices by 10 percent so they could pay thier salesmen (like realtors) a 10-15 percent commission, would you think that the price of a car is too much and complain? I bet most people would. I look at this from both sides. I am open minded about everything. This is not my first career, but my third. I am a little different with my opinions because I am doing this PART TIME for FUN. I do not work for a discount company (don't believe in them), and would not low ball anything. The problem in this industry is the booming FSBO. I understand your stress and hope everyone does well and makes as much as they can. Just trying to explain why people think agents are over paid.
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#243844 - 08/11/08 09:16 PM
Re: The Real Estate Market is BAD!!!
[Re: Vermont]
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Mod Squad
Major Contributor
Registered: 11/27/06
Posts: 7685
Loc: PA
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Well, one thing, you could use some of that commission you say you don't deserve and take some classes - maybe you can learn how to spell their, salary, and always, to name a few.
You do make a valid point: it is too easy to become a real estate agent. I think one should have a solid grasp of the English language.
I personally think movie stars get paid way too much. Why don't you tell Brad Pitt he should cut his salery (sic). How about those athletes - they get paid millions of dollars to run around chasing a ball. And they do so darn much GOOD for us, too, keeping us entertained and all.
The fact is, most agents do not make anywhere near 100,000 a year - most new agents fail by the end of their first year and give up. The ones who are making six figures are the ones who have worked hard, educated themselves, and EARNED the RIGHT to that commission.
The top producer in our office is ALWAYS taking continuing education classes. ALWAYS.
The ones who are content with their high school diploma and the required continuing ed for licensing are the ones who are crying about how dead the market is...how hard it is to get deals, etc.
Agents who make six figures in THIS market clearly deserve it because they've worked hard to become experts in their field.
It's very easy to say "You earn too much" than it is to say "I need to push myself to do better."
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#243847 - 08/11/08 09:27 PM
Re: The Real Estate Market is BAD!!!
[Re: Perky_REALTOR]
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Member
Registered: 07/14/08
Posts: 357
Loc: Dallas, Fort Worth - TX
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Pilot, what percentage of agents in your area are making $100K a year? That's NET I mean. After expenses. And of those who are netting $100K+/year, how many years experience do they average? How many hours do they work each week? Any idea? And do you have any idea what percentage of real estate agents quit during their first year? Just curious.
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#243849 - 08/11/08 09:29 PM
Re: The Real Estate Market is BAD!!!
[Re: Texas Agent]
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Mod Squad
Major Contributor
Registered: 11/27/06
Posts: 7685
Loc: PA
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The problem in this industry is the booming FSBO. Could you further elaborate on this remark?
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#243851 - 08/11/08 09:37 PM
Re: The Real Estate Market is BAD!!!
[Re: Perky_REALTOR]
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Member
Registered: 07/14/08
Posts: 357
Loc: Dallas, Fort Worth - TX
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If Realtors are overpaid, why is it that NINE OUT OF TEN new licensees quit by their third year? Why would they give up all that easy money coming in? Does that make any sense to you Pilot?? 
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#243854 - 08/11/08 09:52 PM
Re: The Real Estate Market is BAD!!!
[Re: Perky_REALTOR]
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Major Contributor
Registered: 04/12/08
Posts: 4725
Loc: Vermont's North-East Kingdom
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I have to make a quick run to the Bank !
_________________________
Dale C. Hittle of GOLDEN RULE PROPERTIES in Glover, Vermont Where We're Always Striving To Put Together "THE FAIR DEAL"
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#243858 - 08/11/08 10:16 PM
Re: The Real Estate Market is BAD!!!
[Re: pilot00]
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Veteran Member
Registered: 07/14/08
Posts: 930
Loc: Puffy Clouds
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Just trying to explain why people think agents are over paid. People think so because they don't understand nor appreciate what an agent's experience and knowledge can bring into a deal. An agent can help you keep more of your equity or can help you minimize your losses if you are upside down. People venture into selling by owner because they think that it is easy. They don't know the first thing about pricing a property, the legal documents needed to keep out of trouble, the steps needed to keep a deal together, in particular if it's in I.C.U. as mentioned by Vermont007. Getting an offer on a property is just the beginning. In a declining market, if you have to sell, there is no time to experiment. Selling sooner rather than later could be the difference between keeping or losing thousands. Many have lost thousands because they didn't want to listen to their professional realtor or even have one for that matter, and by the time they finally came to their senses and were able to sell, they had lost so much that should they had listened earlier on they could have paid the commission and still come ahead in the end.
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#243860 - 08/11/08 10:29 PM
Re: The Real Estate Market is BAD!!!
[Re: Texas Agent]
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Major Contributor
Registered: 04/12/08
Posts: 4725
Loc: Vermont's North-East Kingdom
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I do it myself at night because that is the only time I get to think; and also the only time that the Lamborghini is available. I don't ever want to be seen by the Locals driving it during daylight, so it stays in our Shampoo Parlor.
_________________________
Dale C. Hittle of GOLDEN RULE PROPERTIES in Glover, Vermont Where We're Always Striving To Put Together "THE FAIR DEAL"
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#243867 - 08/11/08 11:06 PM
Re: The Real Estate Market is BAD!!!
[Re: Perky_REALTOR]
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Major Contributor
Registered: 04/12/08
Posts: 4725
Loc: Vermont's North-East Kingdom
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Only because when I'm cruising in that Lamborghini through the mountains on a pitch black night, the Vermont DMV demands that I be vigilant and "Think" about the Moose and Bear and Deer that frequently jump out in front of me. If it were only up to me, I wouldn't think at all . . . . but the DMV makes me do it.
Now, after all this criticism, I have a hankering to cruise on over to the Bank again before dawn; just to check my balances on the ATM . . . . but this time I'll do it in a thoughtless manner.
_________________________
Dale C. Hittle of GOLDEN RULE PROPERTIES in Glover, Vermont Where We're Always Striving To Put Together "THE FAIR DEAL"
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#243878 - 08/12/08 12:04 AM
Re: The Real Estate Market is BAD!!!
[Re: pilot00]
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Veteran Member
Registered: 03/20/07
Posts: 1090
Loc: South Carolina
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Look, I am not trying to start a debate, everyone has a right to thier opinion. Let's say prices were up 50 to 100 percent in one year like the prices were in many areas from 2002-2006. In one year your salery doubled for the same amount of work. The paperwork and advertiseing prices did not change, the rest was pure profit. What was the cost of living increase durring those years?...something like 3-5%. My point is, like it or not, your commissions checks are more now than what they were in 2000 when prices were lower. yes prices are down in some areas but they still have not fallen down below 2000 numbers. I'm a new agent but have been investing in real estate for over 10 years. Markets will go up and down but in the end real estate allways goes back up, and therefore so does your salery (at least more than the cost of living index) As agents we must learn to be good with handling our personal finance so that when times are bad we have money and investment properties avalable to live off of. what if car dealers raised prices by 10 percent so they could pay thier salesmen (like realtors) a 10-15 percent commission, would you think that the price of a car is too much and complain? I bet most people would. I look at this from both sides. I am open minded about everything. This is not my first career, but my third. I am a little different with my opinions because I am doing this PART TIME for FUN. I do not work for a discount company (don't believe in them), and would not low ball anything. The problem in this industry is the booming FSBO. I understand your stress and hope everyone does well and makes as much as they can. Just trying to explain why people think agents are over paid. Well "like it or not" you've started a debate. If prices go up, why do people still use agents? Please explain to us how the booming FSBO is a problem in the real estate industry. You obviously have a problem with agents being overpaid, yet you're not taking less than the "average" agent? Kind of hypocritical to me. So you don't have a problem with the pay for transactions, you just have a problem with agents who can complete WAAAAAAY more transactions than you? To those who dont "do this for fun, part time" ??? Make up your mind!!
Edited by Merkaba (08/12/08 12:09 AM)
_________________________
Realtor Extraordinaire, ABR, E-Pro
Keller Williams Realty Upstate South Carolina
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#243905 - 08/12/08 07:24 AM
Re: The Real Estate Market is BAD!!!
[Re: Merkaba]
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Junior Member
Registered: 08/11/08
Posts: 4
Loc: Indiana
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Please do not take any of this personal, which many are. The fact is this : You are only worth what people think your service is worth. Or you could say you are paid what your worth. If you think you are UNDERPAID please by all means raise your rates and let me know how that works. FSBO and the internet is a problem in the industry because it is taking money away from your pocket. There are still a lot of successful transactions that are being conducted without an agents help. There is a high turn over in any industry. How many pre-law or pre-med students actually graduate? This industry is not for everyone and since the only way to figure out if you like it or not is to try it there will be a high turn over.
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#243911 - 08/12/08 08:20 AM
Re: The Real Estate Market is BAD!!!
[Re: pilot00]
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Major Contributor
Registered: 04/12/08
Posts: 4725
Loc: Vermont's North-East Kingdom
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Except on this Thread, FSBOS ARE NOT a major Threat. As a matter of fact, FSBOs provide me with another source of income in my Consulting business. I have little problem selling my time on an hourly basis to these Folks. Quite a few subsequently become Clients.
FSBOs are actually more concientious than most of the other Sellers that we counsel "for free" in anticipation of being compensated with some elusive percentage of a Transaction that may or may not be consummated at some future date. Time is not so free-flowing when it has a meter associated with it. I don't do for them what they can do for themselves.
I also provide a consultation service to Buyers who are thinking about, or are already engaged in purchasing a FSBO; and I make every effort to "not put cold water" on what might otherwise be a good deal. They too, at some future point, often become Customers, and even Clients. This IS NOT a business that provides immediate gratification.
An "Honest Broker" will always have a place. Some of us have Post-Graduate Degrees; but like you, can practice Real Estate for the "fun" of it. That's what this Forum is, a good place to practice; hone, and yes, even sometimes "think" about this business that allows us to have such an impact on the future course of Others' Lives . . . . even FSBOs !
So much for the Filosofy of FSBOs. Bertrand Russell could contribute much to our discussion; but "Too much thinking will Dull the Mind". Anonymous
_________________________
Dale C. Hittle of GOLDEN RULE PROPERTIES in Glover, Vermont Where We're Always Striving To Put Together "THE FAIR DEAL"
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#243918 - 08/12/08 09:21 AM
Re: The Real Estate Market is BAD!!!
[Re: Merkaba]
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Major Contributor
Registered: 04/12/08
Posts: 4725
Loc: Vermont's North-East Kingdom
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Are "Mr. Owens" and "Reggie Owens" one and the same Person ? What prompted this change ?
I'm sorry; but I have to pay attention to these subtle changes in the World around me.
Most of the Reginalds I know choose to go by Junnie when you get to know them.
_________________________
Dale C. Hittle of GOLDEN RULE PROPERTIES in Glover, Vermont Where We're Always Striving To Put Together "THE FAIR DEAL"
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#243935 - 08/12/08 10:48 AM
Re: The Real Estate Market is BAD!!!
[Re: pilot00]
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Member
Registered: 07/14/08
Posts: 357
Loc: Dallas, Fort Worth - TX
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If you think you are UNDERPAID please by all means raise your rates and let me know how that works. I've asked for and received an 8% commission plus bonus to the selling agent. I then sold the property quickly for MORE than the previous agent who sat on it for a year doing nothing. The buyers were happy because they really liked the property. The buyer's agent was happy about the bonus. I was happy because I took 5%. And the sellers were ecstatic because they actually netted more from the deal I got them than they would have netted using their first agent. Win-win-win-win. Were my services worth that 8% + bonus? You bet! There's a lady who's been FSBO'ing her home around the block from me for almost a year now. Poor thing.
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#244044 - 08/12/08 09:04 PM
Re: The Real Estate Market is BAD!!!
[Re: Perky_REALTOR]
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Junior Member
Registered: 07/21/08
Posts: 8
Loc: CO
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LOL Perky!! You said everything I was thinking. Way to go Pilot..(sarcasm) You put your foot in your mouth on that one. If you don't know the value of who you are and the service you are providing then why would a potential customer think you have any value?
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#244101 - 08/13/08 06:50 AM
Re: The Real Estate Market is BAD!!!
[Re: AgentJoJo]
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Veteran Member
Registered: 03/20/07
Posts: 1090
Loc: South Carolina
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yawn...I'm waiting for an answer to my questions. Why doesnt this guy/gal work for a discount or offer rebates. Its just speaking without thinking, showing how he/she is a new agent.
_________________________
Realtor Extraordinaire, ABR, E-Pro
Keller Williams Realty Upstate South Carolina
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#244123 - 08/13/08 08:24 AM
Re: The Real Estate Market is BAD!!!
[Re: Merkaba]
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Member
Registered: 06/30/08
Posts: 54
Loc: Orlando, Florida
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I think there are a few additional points that some realtors forget to mention when explaining why they charge what, on the surface, appear to be high rates for what to appears to only involve (in the mind of the seller) completing some paperwork and "plopping a sign in the yard."
Another reason that realtors make what appear to be high percentages are RISK and what I like to call "empty holes" and, even better "empty holes with cash in them."
Let me explain.
We always have RISK that a deal will not close and, in fact, many do not close. The total percentage must pay for our time for those deals that close and those that do not. Similarly, we dig a LOT of holes (prospecting), yet many of those holes are empty, and many we even have to throw some cash in for good measure (spending money on prospecting). When we do find a hole with an actual deal, it must compensate us for the empty holes.
A seller might say "well, I'm not going to pay you for OTHER deals that didn't work," but the fact is that they MUST or no one would enter this business and therefore no one would sell their homes.
Additionally, lawyers are another group that understand the concept of RISK and empty holes. You can either pay them X dollars an hour OR a MUCH HIGHER percentage rate if they take the risk of handling your lawsuit on a contingency basis.
Another way of explaining the situation to a seller is that they are free to pay for your services on an hourly, non-contingent basis. $500 to list on the MLS, $300 for a CMA, some amount for lock box, sign, some amount to show buyers the home, some amount to pre-qualify buyers, some amount to deal with the endless phone calls, some amount for the back and forth of offers, counter-offers, etc, some amount when that deal doesn't work and you have to do the whole thing again, some amount for explaining the whole process again and again, some amount to deal with the inspector who wants to kill the deal, ditto with the appraiser, some amount to review the good faith estimtate and HUD-1 to make sure you aren't getting screwed with extra fees, and never mind the little things like calling the city to make sure you can plant a pool in that little space in the backyard, etc, etc.
Pilot doesn't like agents because most investors don't like agents b/c the agents are taking lots of $$ from their pocket. But that doesn't change the reality of what I've stated above. You can check out other forums like reiclub.com (and others) and see the realtor bashing. It's common among investors.
Finally, the top agents in my office when I left the business in 2001, came to the table with advanced degrees and/or previous major success in business or other fields. So they basically just had the work ethic to get things done!
Don't worry . . . pilot will QUICKLY change his mind once he starts prospecting. :)
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#244129 - 08/13/08 09:09 AM
Re: The Real Estate Market is BAD!!!
[Re: plutostina]
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Veteran Member
Registered: 07/14/08
Posts: 930
Loc: Puffy Clouds
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Pilot doesn't like agents because most investors don't like agents b/c the agents are taking lots of $$ from their pocket. But that doesn't change the reality of what I've stated above. You can check out other forums like reiclub.com (and others) and see the realtor bashing. It's common among investors.
I'm glad you brought this up. I have seen the bashing of real estate agents in the investor forums too, the thread about 'how do I get rid of this real estate agent', the one about 'how do I go around the agent [with the purpose to stiff his/her commission]'. How about the countless threads claiming that real estate agents have no clue whatsoever about anything! Just like in any other profession, some people are good at what they do, some are so so, some are not good. This applies to those that are in the profession of being an investor as well. Finally, the top agents in my office when I left the business in 2001, came to the table with advanced degrees and/or previous major success in business or other fields. So they basically just had the work ethic to get things done! So very true. Let's not forget about those that do not have the degrees but are very, very smart, savvy and successful at what they do.
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#244147 - 08/13/08 11:14 AM
Re: The Real Estate Market is BAD!!!
[Re: FL_Agent]
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Member
Registered: 06/30/08
Posts: 54
Loc: Orlando, Florida
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[quote=swflagentI'm glad you brought this up. I have seen the bashing of real estate agents in the investor forums too, the thread about 'how do I get rid of this real estate agent', the one about 'how do I go around the agent [with the purpose to stiff his/her commission]'. How about the countless threads claiming that real estate agents have no clue whatsoever about anything!
Just like in any other profession, some people are good at what they do, some are so so, some are not good. This applies to those that are in the profession of being an investor as well.
So very true. Let's not forget about those that do not have the degrees but are very, very smart, savvy and successful at what they do.
[/quote]
Yes, investors complain a LOT about real estate agents and also how to get around their commissions. By the way, if you are ever dealing with an investor, whether FSBO or buyer or seller, make sure you get EVERY CYA document signed. They are worse than lawyers. The only deal where I ever lost a commission was dealing with an investor (well, they seriously cut the commission) because I didn't get them to sign an agreement to pay a commission as a FSBO before I showed their house to some buyers that I met at an open house (and who NEVER would have seen his house b/c they didn't know the area and I showed them the areas that were good, found the house, made the introductions, etc). Then they called each other and decided they didn't need me (which they didn't, at that point, because I had nothing signed). They still offered to pay me a very low percentage (maybe 1% if I remember correctly) to handle the paperwork, which I took because I was new and needed the money. But I learned my lesson b/c that was a high dollar house and it really SUCKED!
Anyway . . . yes, there are other agents without degrees who do well. But I haven't met any top producing agents who weren't successful in whatever they were doing before. But in my office we had a top producing former CEO, a top producing former lawyer, and a top producing former successful business owner. These people left their professions for lifestyle reasons, not because they weren't making money.
I'm also a very small time investor (we have five rentals), but I couldn't find the deals that I find without access to the MLS and knowledge of how the process works . . .something that many investors are lacking.
Read the forums for investors . . . you will see questions like "how can I get out of this contract," or "how do I write this contract," . . . crazy stuff like not understanding that the contract can and should be contingent on financing or inspections. Ultimately obviously rich investors learn the way to make the deals happen . . . but usually that's after a lot of education from realtors or other experienced investors . . . but experienced investors seem to forget that most people do not know how to handle a real estate transaction from start to finish. They just don't. Yet the investors still whine and complain about the fact that realtors aren't worth their commissions.
And remember PROSPECTING costs time and money that must lead to adequate compensation for the time spent. So I still want to talk to Mr. Pilot after his first day spent calling FSBOs or expireds!!! Mark my words. He WILL be singing a different tune, whether he admits it to us or not!
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#283254 - 03/25/09 11:21 PM
Re: The Real Estate Market is BAD!!!
[Re: Texas Agent]
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Member
Registered: 03/10/09
Posts: 10
Loc: Beaumont, TX
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[quote=Texas Agent][quote=Perky_REALTOR]I don't know whether to laugh or cry. LOL. [/quote]
He stopped laughing as soon as I quoted him a few statistics about Realtor incomes from the NAR. Especially the statistics for new agents (less than two years experience.)
I also asked him how much he'd have to pay if he was writing his own health insurance check each month and creating his own retirement fund.
What were those statistics from NAR you mentioned. I am curious what the average, mean, median, range, etc of first year RE Agents. Especially if you have geographic information (preferably ski resort areas). Thanks
At that point he really started scratching his head.
:grin: [/quote]
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This Google Custom search may do a better job of searching the forums for some keywords than the old forum search does. The results do not include threads from the Asset Managers Forum however. To search that forum you will need to be actually in the Asset Managers Forum and you will need to use the old forum search below.
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Registered: 04/12/08
Posts: 4725
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