With all the negative media Realtors have to face on a daily basis, there are occasions I can feel the steam shooting out of my ears! Between the current market trends to how Realtors and Mortgage people have somehow offended the public. We as a group seem to be targeted, misunderstood and most of all blamed for things that is just not a fair assessment of our entire Profession.
Media....Yuck...Fact or Fiction? Does it really matter? It only matters to the people who are willing to listen.
Media is about selling their stories and not necessarily a true assessment of what is happening in the world.
I tend not to go there, as a matter of fact, I only read newspaper articles if they are pointed out to me or brought in to me.
Media to me is a joke. The reporting less than impressive. Biased...in many cases, an unfair assessment.
Recently there was an impressive article in the Daytona Beach News Journal, hmmmm, maybe now they are getting it. The media that is.
Finally a fair assessment, a true look at what is happening...Happening to people in our industry and how we are affected.
Mr. and Mrs. Consumer....We have lots in Common. Our concerns are not that different from yours. You see many of us have families to feed, taxes to pay and we deal with the every day issues that effect families just like you. Just like you we want a happy and fulfilled life...
In the recent article that was brought to me by one of our top Realtors, the headlines read.....IN REAL ESTATE? BETTER GET A SECOND JOB! Agents take on extra work to make ends meet!
The article stated that many real estate professionals are still working primarily in Real Estate but due to the current market, high expenses and lack of business many are moonlighting. Can we really fault people for doing that? I know many consumer's who moonlight to keep their families going.
Mr. and Mrs. consumer let me share with you a few important facts that you may not be awar
e of.
Our Broker's do not pay for our gas, nor do they pay us for taking customers out. Our compensation is based on closing a real estate transaction.
That means if we don't sell something for 6 months we don't get paid for six months.
Full-time vs. Part-Time Agents, while I tend to agree that you get what you put into your business. There are occasions just like yourself that you need to supplement your income.
I can tell you that we have a few part-time associates that make more money and close more transactions than many members of the Daytona Associaton of Realtor who are full time associates.
While you read that Real Estate Agents are loaded, we are our own business owners, we have expenses just like WalMart Corporation or your physician or lawyer.
World Events do in fact affect our business, our lives and our families. If you aren't buying, we aren't eating!
We have not received raises in years. That's right in years! So when you stall on your purchase or attempt to cut our compensation, please do us a favor and remember this.
How would your family be affected if you were to never receive a pay increase or compensation at all. What if your company you work for decided to cut your pay in half just because they wanted to or felt you were being overcompensated?
Just like any other industry realize, that 20% of the agents make 80% of the money. That is the truth, the harsh cold reality. That's
right some agents make very little money or no money at all.
According to Mark Dougherty, Director of the Daytona Area Association of Realtors. Membership is off by a mere 43 people or 2.5 percent from the 1740 at the start of the year.
"We would have thought that the membership would correct itself....so far it hasn't."
So Mr. and Mrs. Consumer what does that tell you? We are with you.
We as a profession still believe in what we do and we have hope.
We present you with the facts, use our skills and we are honored when we get the opportunity to utilize them.
Mr. and Mrs. Consumer....We have lots in Common. Our concerns are not that different from yours. You see many of us have families to feed, taxes to pay and we deal with the every day issues that effect families just like you.
So please the next time you interview an agent and ask that vital question are you a full or part time agent, consider using different verbiage. More along the lines of How many transactions have you closed this year?
Thank you Daytona Beach News Journal....Thank you Barry Flynn...you took one for the team!
Midori, I agree 100%, I read the article and it was good and right on the nose. The Brokers also don't pay the Agents for the time they spend waiting at a property for that person that never shows or calls to say they can't make it.
Rated a 5 and flagged!
Midori
5 star well said post!!
Midori,
This is the same in our Mortgage Business, what a excellent way to open the Consumers eyes, they really need to know how all of us Earn our living. I think this is Awesome!!! Thanks Midori :0) By the way, in one of my last posts, I notated how many posts you wrote since being on the Rain.. Not Bad!! i'm envious. and it's definitely a Feature #5
Tom Weiss
Midori,
Good job on the post it's a 5. Now, I am a full time Realtor and it is very expensive to be in our business. There are so many misconception about what it means to be a Realtor and who pays for what. Once, one of the consumers asked me, "Well, doesn't your broker reimburse you for the gas for your car?" The answer is NO. that is N-O. I am an independent contractor and have to pay for my gas and most of my marketing.
Thank you for showing the human side of real estate business survival issues.
Lysa-Thank you....I don't think the consumer see's all sides. It's human nature. It's our job to educate them and remind them they hired us for PROTECTION!
Diane-Thank you! See you on your post.
Renee- To me closed transactions do matter. "It is about ability to get the job done, systems & a marketing plan." Your quote. Now I know it does not guarentee in some markets because of the saturation but I do believe If you are doing everything you can by your guidelines, I believe that someone who is not doing what you suggest..Consider their production...what production? That is my point, the person who can sell and close! Thank you for your input and I always enjoy when you stop by one of my posts.
Thomas-in my past life...I did mortgages as well. we have to educate those consumers as well. It's really not that different. Hmmm.have to check it out! You keep writing Thomas. One day next week I will be in touch. thank you so much....
Ana-I knew you would appreciate this as we have discussions of this type quite often. I think that is what we need to do, we need to let the consumerk know we are the same just have a title. Thanks for your comment.
Excellent post Midori and I sure hope the consumers read it. So many of them think we're over paid ...just look at our business cards. Multi million dollar producer...the message we send tells them so.
Monika-Yes, you are so right...multi-million dollar producer...hmmm...if only the consumer really knew! The amounts we share with our broker's to advertising costs. etc. etc. Thanks for commenting. Lysa told me about a new post of yours that I have to get to. Can't wait to check it out! I have missed you. But love your tan! Will see you on your post.
Neal-Hmmm.hot dog stand. do they still have them in South Florida? Not sure that you are a hot dog selling kind of guy. I'll call you sometime tomorrow.
Sally-I know what you mean. I did post it in localism too! See you on your post girl! Thanks for commenting.
Great post...Hope it'll shed some light on our plight...
The NAR reports that the average Realtor makes about $30k/ year.
No, most are not rolling in dough.
Really great post! I think most people have no idea about our costs!!!
Armondo-Me too! Thanks for commenting. Looking through our company stats and seeing what kind of business our local realtors are doing. I don't think this year will be a $30,000.00 year for many. That's why we have to educate the consumer....that's why we have to let them know what kind of costs we put out and what we do. For once, I liked what the media reported.
Bill and Barbara Jo-You are so right, they have no idea and they have this idea we are all filthy rich and we have money to spare. We are just like them....no different just real estate professionals. Thanks always for your comments and feedback.
Midori -
This was an excellent post! You struck a nerve with me! I rated this a 5 and flagged it as well. I felt every word, it feels great to write with conviction doesn't it!
Great post, Midori......
I just wish those refferal people I gave ya had stuck with Joe......
He was on top of everything!!
=-)
Amen to that sis!!
=-)
Jennifer-you are so right. I think in most instances we are afraid to address these issues with buyers and seller's. When I sold, I did not hesitate to explain these parts of the business, its part of my presentations, under expectations. If you build rapport with a customer they will already have a better understanding, if you open up and explain things to them. As far as reduced commissions, we don't seem to have that problem anymore. Thank Goodness...we need those marketing dollars! I do agree if everyone cannot have a meeting of the minds and it's a win win situation...I say Next! thank you for your comment.
Leah-Thank you...yes we have to address these issues in advance. Believe me I used to tell the customers to make the escrow check payable to Midori Miller's kid's shoe fund. I had 3 teenage sons in size 12 shoes. or that I have a job to do and 3 college bound kids. It was a joke but at the same time I wanted them to know I was serious and I needed to make money.
Midori,
Bravo---An outstanding post.
Midori,
Super post, I enjoyed reading and you hit the nail on the head.
However, one thing I must disagree with, the part about agents not getting raises. In most markets average sales prices appreciate (well maybe less lately) but that would constitute a raise for someone working for commission.
I believe that was one point in that dreaded 60 minutes piece, that although home prices go up, Realtor commissions stay the same. So I would say Realtors do get raises, but:
1.) They are based on the market which noone has any control over, and it could possibly be a wage decrease.
2.) On average, the pay increase (based on "normal" appreciation) is about enough to cover inflation.
Again, great post, thanks for the read!
Great post, Midori!
I believe just important for us Realtors and lenders share with our clients from time to time how we work and what it takes to be an agent or a lender. I often hear clients say "I'd never want your job". Yet others think we earn too much money.
I share with my clients how I earn my fee...how I pay my broker every month...how I pay for all of my advertising and marketing...etc. I don't overwhelm them with details, but I make them aware that when I list a property, I'm taking all the risk by putting up money upfront and hopefully make a return on my investment (their home selling).
I don't believe enough agents and lenders explain this to their clients, because they're afraid their clients will think they make a lot of money. When you break all down after expenses, taxes, etc., how much are you really earning?
Diane-Thank you for stopping by and commenting.
Gary-this has been a long time coming. Hopefully other's will follow suit. thanks for stopping by and commenting. Will see you on your post.
Steve-Not sure that I agree with you....a couple of things....average it out and I imagine it's not as big of increase as you may think. While prices have increased in the past we are seeing just the opposite. Is it really a raise? I used to think that but not anymore. The common trend when the market was hot was reduced commissions. So is it really a pay increase? Now there are fewer sales, higher commissions may be offered but market time, how long is it now? Are people selling as many properties as they did in the past? Hmmm, then there is the cost. Have your expenses dropped? Most markets have down time, did you include that in your assessment? These are things agents often forget. If you average the entire year....I can bet you did not get a pay increase. I do appreciate your feedback....thanks for commenting and I will see you on your post.
Bob and Carolin-Thank you for commenting....see you on your post.
Joe-I am no doom and gloom person but I tend to agree. The market will take some time to turn around. I think now it's important to just get your fair share. No the media has not helped at all but we as realtors can make a difference. That means don't worry so much about the media just get out there and make the most of this current market.
Dan-I can't agree with you more. If we share this with our customers and educate. You will find that you will be dealing with a better customer. Most often the consumer has no idea how we get paid. Who pays for what. As long as we educate our customers, they will become easier to work with and become even more loyal. I did not hesitate to tell people how I earned my income. Building that rapport will help these types of conversations to emerge. Thank you so much for your input and I will see you on your post.
Debbie-you made me smile a true testimony in what I am talking about. I think it is our job to educate and let them know the reality of real estate. I have always had a saying regardless of who is at fault in a real estate transaction...we will always be blamed! thanks for commenting.
Jennifer-Good, that is the point. we have to remind the consumer that we don't do this for charity and we deserve to earn an honest and decent living. Imagine if our customers lost a portion of their salaries. How would they be able to afford their home? Well when they cut our commissions how are we able to afford our homes? We are no different then them except we have the professional license! Well we have the same needs and in most instances dreams and goals. thanks for commenting and I will see you on your post.
Anna-thank you Anna....see you on your post
Joshua-Thank you for stopping by and reading.
Albert- I try to sit through a half an hour of news in the am. Its so hard...it's like reading a novel anymore. I do believe that being open and honest will always be better. Thanks for commenting...
Midori - very well said my dear! I'm not a REaltor but have to say it's a profession where you are either very well loved or hated. Doesn't seem to much inbetween. hope you are doing well...
how is that midori on the google searches coming?
All the best,
Beth