Realtor Heaven

[Bob G]

Why should realtors care o housing crashes. The crash will force many sales. Many (most) of which will include them. Realtors made oodles of money on the way up, and will almost as much on the way down vis a vi short sales.

I.D.

[Cow_tipping]

Realtors like stock exchanges rely on volume. They dont want a slow slide down taking years. That means no one will be buying as prices are slowly dropping cos no one wants to buy a declining assent. Doesn’t matter if drops 1% a year. Volume is what really matters. Now if prices drop 30-50% overnight, and then start slowly climbing again that will spur a lot of people to get back in. yesterday it was 1 mill, now its just 600K … buy now when its low, or be priced out forever. See how that works.
Cool.
Cow_tipping.

[cr]

I really don’t think the deflation of this massive bubble will be Realtor heaven.

You’re comparing to times when sellers had multiple offers before a house was even listed. Open houses led to on the spot bidding wars.

THAT was Realtor heaven. I don’t think the downturn will be anything but trouble for them. Lower prices will no longer afford the lavish style of the Realtor who made $50k/month, selling multi-million dollar homes that are now rapidly deflating in value.

Do REO/forecloseure sales owned by the bank even need an agent to be sold?

[sdrealtor]

Hopefully it will be better. Multiple offeres and bidding wars was NOT heaven. For buyers agents it sucked. Heaven would be a nice balance. As for realtors making $50K/month, you are talking about a couple dozen in SD county.

[sdappraiser]

Sandicor states just over $1 Billion in listed R/E transactions closed in Jan 2007. Assume avg commission is 2.5%, thats approx. $25,000,000 in gross commissions floating around SD EVERY MONTH. You don’t need a big piece of this pie to make a killing in this business, even in a declining and slow market.

It cracks me up how obtuse most of you are.

[sdrealtor]

Let’s see just over $1 Billion in closed transactions in Jan 2007.

There were 1820 transactions which works out to an average of about $600,000 per transaction.

At 2.5% commission rate thats $15,000 per transaction of which approximately $10,000 goes to the agent while the rest goes to the brokerage.

Sandicor currently has more than 23,000 members which means that on average 1 out of every 13 members received a $10,000 commsion while the vast majority recieved NOTHING.

Are there agents bringing home the BIG COIN? Absolutely, but they are very few and very far between.

[gold_dredger_phd]

Anything that causes the churning of houses is good for realtors. Today is the time to churn!

[sdappraiser]

There are over 1,700 appraisers in SD County, most of whom are members of Sandicor. Of the remaining 21,300 members, how many are actually active in sales? You can’t tell me they are all active participants. Someone must have a stat on inactive realtors in SD who are still paying dues.

IMNSHO – Anyone in this business who works for a large brokerage and is not independant is a fool. Why would anyone give away 33% of the nut to someone else – on top of the outrageous franchise dues assessed (Prudential/Remax). People who are too lazy to learn and really understand this business, take a few extra classes and take on a little extra risk deserve to fail. If managed correctly, this is one of the cheapest businesses to run.

Now, I’m not claiming to make BIG COIN. But I only work 9 months out of the year and several hours a day at best – from home. Appraisal work pays the overhead and a few listings here and there is the gravy. I’ve never felt more secure, so many here are worried about the economy and job losses.

Don’t you find it amusing that it’s the 8 to 6er’s with their 50 hour work weeks and measly 2 week vacations who are always knocking our business. Sometimes the grass is greener.

[drunkle]

“Of the remaining 21,300 members, how many are actually active in sales? ”

perhaps it’s like the gov’s assessment of “employment”: those that are neither employed or on unemployment are non participants. ie., they don’t get counted in median wage estimation, employment/unemployment figures, etc…

so, your “inactive members”, those that failed to make a sale and earn a commission really dont exist and shouldn’t be counted… regardless of their “hard” work.

well, they were just housewives working 9 mo out of the year and from home at that…

[sdrealtor]

“There are over 1,700 appraisers in SD County, most of whom are members of Sandicor. Of the remaining 21,300 members, how many are actually active in sales? You can’t tell me they are all active participants. Someone must have a stat on inactive realtors in SD who are still paying dues.”

For every dues paying inactive agent there are two or three active licensees using someone elses account without joining Sandicor.

FYI, most of the heavy hitters work for the major brokerages. I wouldn’t classify these folks as fools.

[cr]

http://sandiegocountyrealestatenews.com/index.html

“According to Sandicor [the Multiple Listing Service for San Diego County–MLS], there are over 22,000 licensed real estate agents on the MLS system for Sandicor.”

I imagine there are a lot not listed with Sandicor, but let’s just go with that.

Let’s assume the 25MM is distributed evenly so that’s $1137/mo per agent; $13,637/yr.

Not exactly the high life.

I think I’ll keep my “8-6” and consider becoming an agent part time.

Obtuse is telling people now is a good time to sell or buy.

[sdappraiser]

Now your being obtuse. Nothing in life is distributed evenly, except for perhaps my sarcasm. There are so many socialistic people on this board – always complaining that things are unfair because they missed out on this or that.

Some people are just born to be clock punchers making other people rich with no control of THEIR own destiny. Not my thing. Yeah, there are a lot of agents out there hurting right now.. But I think we all agree 80% of them were dead weight to begin with. You really don’t have to work that hard to make a great living AND maintain an ethical and value added service/business. I consider myself a BROKER not a sales person. I don’t SELL real estate, I help people obtain THEIR objectives. The NAR propaganda makes me as sick as everyone else here.

[cr]

SDAppraiser,

Stop throwing around your flagrant comments and read what people are saying. This post is about the state of the market being “Realtor Heaven” or not. You said there is a lot of money out there, and no one argues that. But split 22,000 ways, even if more than 50% get $0, still amounts to far less than the clock puncher jobs you’ve pigeon-holed everyone not in Real Estate to.

I never said it WAS or SHOULD BE even, but clearly it is NOT “Heaven.” I only used the even distribution to indicate an something called an “average.” Using an average makes me socialist? And who was complaining about things being unfair?

80% is quite a claim, but even if only 20% got a piece of that pie, it still only amounts to $68k/yr. That won’t even afford the average house. Again, heaven? I don’t think so…

[Author]

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