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Mr. and Mrs. Consumer....We Have Lots in Common!

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 aware 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.

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!

Posted by Midori Miller-Daytona Beach Florida Real Estate Trainer on 09/05/2007 06:54 PM

Comments (43)

daytona beach news journal, real estate profession, midori, midori miller, consumers, daytona beach area assocation of realtors, volusia

Originally posted at: Daytona Real Estate Training: Mr. and Mrs. Consumer....We Have Lots in Common!

43 Comments on Mr. and Mrs. Consumer....We Have Lots in Common!

SEP

2007

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!!

:golf clap: Bueno, 5 and a flag! I personally don't believe it is even about closed transactions. It is about ability to get the job done, systems & a marketing plan. What's the diff if a full time agent spending too much time on vacation or the golf course and a part time agent? Not much. It's the ability to sell and close!

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.

I hope I sell your parents already or I might need to break out the hot dog stand. Does that mean my broker will pay my gas?:) Call me.

I've had client's who think we get paid by the hour, get gas money and then the commission. I hope MANY read this so they have the correct info.

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!

Alecia-Thank you...I don't know what has come over me...I suppose it's training mode again! Thank you so much for the compliment and I hope your business is doing well. Will be in touch with you soon my friend!

Great post, Midori......

I just wish those refferal people I gave ya had stuck with Joe......

He was on top of everything!!

=-)

Alex-Me too but you know what I felt honored that you even thought of us. Thank you Alex. We'll get them the next time!

Amen to that sis!!

=-)

Unfortunately, most people just don't care to learn how independent contractors work. They prefer to listen to the media hype. Then they want us to discount their listing fee, but want top of the line marketing, or the buyers want a rebate from our commission. Every now and then I have to sit them down and explain it, but more than once I just get a blank stare back because they don't care. I say, "Next".

Great post Midori! You do a good job of making the agent a real person...just like a seller or buyer..everyone has mouths to feed and a job to do!

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.

Great post, Midori. I wished our local mullet wrapper would run something positive about real estate. Well done!

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?

SEP

2007

Very good post. Thanks for sharing with us all.

Nice post Midori. I agree that the media isn't helping a tough situation. Inman reported this a.m. that the "turnaround" is probably further off than first anticipated.... Duh.

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.

Enjoyed the article, and felt that you pointed how easy it is for the public to assume that we all are in the category of being real estate agents that make tons of money. I like the part about the compensation and getting a raise. The one nice thing I like about being in real estate is that no one can fire you except yourself.

Lorraine-Yes the public makes assumptions but we are at fault we must educate them and let them know what is true and what is not true. Thank you so much for commenting and I will see you on your post.

My seller said to me the other day -- the press makes you all look sleazy as a profession. I told him to stop reading the real estate section of the Washington Post!

You're right about the raise!'ll remember that when someone tries to get me to lower my fees!

Midori, Congrats on the Feature. You deserve it. Thanks for sharing with the public what it takes to be a Realtor in this business.

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

great post

Your bring up some excellent points here. The media's motivation is mostly about ratings and/or circulation and they are more than willing to vilify a whole industry to increase those. Their tactic of Good vs Evil with a grab at peoples emotions almost always satisfies their goals. Being open and upfront with buyers and sellers is definitely the best medicine.

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, This posts tells the truth that many consumers don't know and that the media often conveniently ignores. Very well written!

Lola-its funny we just assume they know. The media...HAHAHAHAHA that is all I can say for most of it! Thank you for stopping by and commenting.

SEP

2007

Hi Candace-I agree and our customers should be made aware! Remember the public has a few sources of information and we have to decide which they should listen to. The media or us! Media will never report just how expensive it is to be in real estate, only the down turned market. Bad or good market we make that decision ourselves based on each of our own work ethics. Thanks for commenting and see you on your post.

OCT

2007

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

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