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Real Estate Agents: Full time Vs Part-Time

By Thomas McGiveron

Real Estate Agent with BangThePhones.com

January 12, 2008 08:35 AM

I work a minimum of 13 hours a day, six days a week. That's a minimum of 13 hours a day too. I probably average 15 hours a day. I wake up at 5am and by 6 am, I'm working. I am usually in the office by 9:30am and I am in and out all day. I call people, meet homeowners in the neighborhood, and do many things throughout the day that hopefully keep me that much more ahead of my competition.

As a part-time real estate agent, I work (at the most) 40 hours a week. And that's if I'm a work horse. I know because I did it. To Put in hours like that on top of a full-time job takes a great deal of focus. I would say most part-time real estate agents, put in about 25 hours at the most. In order to provide comprehensive services, an agent must work a minimum of 40 hours a week.

Now if an agent sticks to working a small market area and takes on only two or three listings a month, then 25 hours a week will probably be okay. Why does this matter to a homeowner? Why does this matter to a buyer or investor? Ask yourself this, how can someone, who works less than 40 hours a week, possibly know the market and meet my needs in a comprehensive way? Certainly there are some agents out there that really can see to your needs and work part-time. But out of all the agents who are in this business (there are approximately 27,000 licensed real estate agents on Long Island) how many part-timers will be able to really give you the service you deserve?

Think about it. The average home sale is well over a quarter of a million dollars or $250,000. I wanted to use the phrase "quarter of a million dollars" to drive home a point. Twenty-five hours a week is going to be sufficient to see to it that your interests are fully represented? I mean, we're talking about a quarter of a million dollars (and most times, much more in the Long Island market).That's a lot of money when you sit down, take a deep breath and think about it.

Think about this, it's 6:34pm on a Wednesday. I'm taking 15 minutes to finish this article that I started a week ago at 1am on a monday. I've made sure all my phone calls have been made. I've contacted my buyers and my sellers to assure them that our appointments have been scheduled. I've been in and out of the office several times today, talking with homeowners, meeting with business owners and also managed to attend our team meeting. I've sent out 23 emails and printed and mailed over 30 letters.

I am not a part-timer, looking to "supplement" my income. I am a business. It's 6:42pm and I'm done - 7 minutes before schedule, time to check the local market and prepare for tomorrow's appointments!

by Thomas McGiveron

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Bryce Fuller

Coldwell Banker Residential Brokerage - Northbrook, IL

Tom, great point! I don't know if I'd ever hire a "part-time" dentist, surgeon, or lawyer.... EVER!

Jan 12, 2008 08:37 AM

Joey Remondino

RE/MAX Preferred Properties - Vienna, VA

Broker, GRI, E-Pro

You make some good points, I have recently made it my crusade to have the licensing requirements increased in our state. It is too easy to get a license and that allows too many people that would not otherwise have a license get one. You may think this post is funny I wrote a few months back here.

Thanks for the post.

Jan 12, 2008 08:50 AM

Anonymous

Valerie

I am a dual-career real estate agent (I don't consider myself "part time). You may make some good points; however, you are equating time with quality. There are many "so called" full time real estate agents (or as I like to call them, single-career agents) who do not work as hard as I do and who do not know as much about the real estate market. I think neither group should be put in a category. I believe a good real estate agent is a good real estate agent, no matter how many hours they work. As long as they are meeting the needs of their clients and looking out for their clients' best interests, 20 hours, 40 hours or 100 hours shouldn't matter.

Jul 28, 2008 05:36 AM

Anonymous

Denise

I would like to know how Bryce would even know if his lawyer, surgeon, or dentist was part time.

Jul 28, 2008 05:38 AM

Thomas McGiveron

BangThePhones.com - Sayville, NY

Thomas McGiveron Lic. R.E. Broker Associate

Val - point taken 100%. Definitely agree - not every "part timer" is a "bad agent" and DEFINITELY not every agent who is full-time a good agent. Point taken.

Jul 28, 2008 02:54 PM

Thomas McGiveron

BangThePhones.com - Sayville, NY

Thomas McGiveron Lic. R.E. Broker Associate

I say AMEN to that Corinne! Got to love that!

http://www.amazon.com/gp/product/0071385207?ie=UTF8&tag=realestate02b-20&linkCode=as2&camp=1789&creative=9325&creativeASIN=0071385207

Oct 17, 2008 09:59 AM

Carla J. Holt-Spahr

Home Sale Options (Formerly EXIT Now Realty) - Maple Grove, MN

You can lead a horse to water but you can't make it drink. You can ask for the sale but you can't shove it down your customer’s throat. Whether you are a full time or part time agent the fact remains - you are ALWAYS a salesperson...no matter what, which is why it is vital to keep your comments to yourself about your peers...especially if you are in a management position. To side with those of whom you also manage against a sheep in your flock because of their part-time status is a sin among sins, and most definitely a liable lawsuit against you and those you side with for unjust slander according to the Code of Ethics...possibly losing your license, but among all, your credibility among those to whom you portrayed the facade of 'great and just leader who has my back'.

Unfortunately we all can not practice real estate full time because we all do not have deep pockets, nor do we all have significant others with hourly/salary paid jobs to support us as we pursue our RE commission-based careers; However, it is not the time of day that determines full or part time activities in this particular field, rather, it is the hours we spend working at this job that add up to 30-50 hours a week...and in addition to working with our clients, those hours include blogging, building and/or working on your site for more exposure, making calls, door-knocking, hosting informational seminars, preparing material for those seminars, making arrangements and getting guest speakers for those seminars, developing strategic advertising to bring in more customers, the list goes on and on. And, the truth be told, a person could work 100 hours a week at this job, and still be outsold by a person who works only 10-15 hours a week. In this market, it’s about working smart and being courteous towards your customers and clients needs and lifestyle, above all, knowing how to treat your peers with the dignity and respect they deserve for their efforts...this is a hard business, anyone pursuing this career is, in my book, a hard worker and deserves equal "props".

So, to sum it all up, it is by no means professional to treat a peer who is part time with less respect and/or courtesy because of their part-time status...even worse, for a person in a lead position to allow for such behavior is a reflection on the company as a whole.

In light of this, what would you do if you were a part-time agent getting reprimanded or subtle hints from your broker and peers that because of your part-time real estate status you only deserve partial help, respect and resources?

Mar 21, 2009 02:56 AM

Thomas McGiveron

BangThePhones.com - Sayville, NY

Thomas McGiveron Lic. R.E. Broker Associate

Carla,

To answer you question there at the end - I would say - absolutely not. If you PRODUCE - whether you're a part time agent or full time - that's where the broker resources will go and should go.

If you're selling and producing - whether you're working harder or smarter - it doesn't matter.

However - there should be some kind of designation to signify who's part time and who is full time.

www.lispendenslists.com

Mar 23, 2009 01:05 PM

Anonymous

Ileri Ogunfiditimi (Ileri Ogunfiditimi LLC/Jobin Realty)

Carla and Valerie have made very legitimate points. I also think that discriminating against real estate agents who are part-time is a totally ludicrous practice. And Carla is correct in suggesting that it represents poor leadership qualities and entrepreneurial skills. The fact remains that the practice of real estate brokerage is a business profession. It's not a job in the traditional sense. This very fact makes it very unique when compared to salespeople in other industries. Real estate agents are the only professionals in the country who are classified as statutory independent contractors.

What makes this tax status so unique is that the IRS recognizes real estate agents to be 100% self-employed. Being self-employed means that real estate agents are also small business owners and employers even when affiliated with a brokerage firm (e.g. agents can hire staff just like any other business owner; they receive 1099s just like management consultants, freelancers, and other traditional independent contractors; they're considered sole proprietors just like the mom-and-pop retail shop in your neighborhood, and in most states, they can incorporate their real estate practices).

Now contrast the aforementioned with salespeople in other industries, who oftentimes are employees of their firms - even when they are treated as independent contractors. Employees who are also independent contractors are considered by the IRS as statutory employees. They're ICs for income tax purposes, but they're employees because they receive W2s at the end of the year due to Medicare and Social Security withholdings. Again, totally different than real estate salespeople. It would not surprise me if many brokers were unaware of the tax and legal relationships established with their sales associates.

Managers and brokers who understand that real estate agents are CEOs of a small business, also understand that real estate agents are subject to the same difficulties experienced by other small businesses. One of those difficulties being capitalization. And as Carla has stated, having the financial capacity to support ones business endeavors is a common obstacle for many real estate practitioners. But you know what? It's also an obstacle for businesspeople in other arenas as well. Many of times, the best time and most effective strategy in pursuing a business venture is when you have a full-time job because your income can provide the financial capital needed for sales and marketing, MLS and board dues, and the multitude of additional expenses incurred by most real estate practitioners or small business owners for that matter.

In summary, to suggest a designation to signify who's part-time and who's full-time serves no positive purpose and truly falls out of line with the entrepreneurial mindset. It's quite unfortumate that many of today's real estate practitioners, managers, and brokers still haven't been able to rid themselves of the employee-mentality adopted from their previous careers.

May 29, 2009 04:00 AM

#10

Thomas McGiveron

BangThePhones.com - Sayville, NY

Thomas McGiveron Lic. R.E. Broker Associate

Ileri,

An entrepreneur who starts a business - that supports his/her livelihood doesn't work 15 hours a week. Unless of course they're one of those people on those really cheesy commercials who sell stuff on Ebay or some other million dollar overnight "it's so easy" scams.

What I said has nothing to do with being employed or not. No mindset.

It's whether I can be there for my clients. It's the difference between being able to answer the phone whenever I want - or not because I'm at my job and the boss there can't see me answering a cell phone.

it's the difference between someone who manages A BUSINESS and someone else who wants to "supplement their income".

It's the difference between knowing the real estate market, staying up on the latest and most important information regarding the market and having the ability to consult PROFESSIONALLY with a homeowner.

I'm not saying that every "part timer" is incompetent or isn't professional. I am saying that in my experience - they don't answer calls, don't call back and their listings look like something smelly you step in outside.

Believe me, I am fully aware I'm a "CEO" and all that - you can dress it up all you want - but at the end of the day, it's WORK. Whether you're the owner and "CEO" of a company with 150 employees or your a real estate agent - you've got to make it rain - period. It's work. I have a schedule. I follow that schedule like clockwork...and here's the big difference.

Everytime a client calls me - nearly 99% of the time - I answer the phone...and you know what - they love me for it. I have the answers. I make things easier for them by being there, ready.

And me saying that there should be a designation - part time or full-time HAS NOTHING to do with employment status - it's about how much you work for your client or what your capabilities are to service your listings - period.

I know myself - and if I weren't a real estate agent and I was selling my house - I've been around the block enough times to know that I DO NOT want any teacher, supplementing their income as a real estate agent, to sell my house. forget it.

Deals fall through simply on the character of an agent - and if they can't negotiate - because all they did was get their license and never read a book or studied the art (which is very common) - and they "work" 12 hours a week - they should have a designation - Part Time. OR FULL DISCLOSURE that they have a regular full-time jobbie job. or something.

And finally - toward my point of negotiating - just because you have a license that says...salesman does NOT mean you are one. Means NOTHING. Idiots running around calling themselves a salesman means nothing - they are not salesman. They just have a license that says they are and they run around thinking they are or have the ability to sell.

LOL - a TRUE entrepreneur doesn't have a fall back. A TRUE ceo doesn't work somewhere else. A TRUE salesman works at being a great salesperson, studying technique, refining their knowledge of the product they're selling, constantly looking to improve what they do and how they do it. A TRUE entrepreneur and ceo IS A CONSTANT PROFESSIONAL SALESPERSON. Period. Oh and it takes more than 12 hours a week to achieve that...in this business anyway...in the real world...in this market!!!

Jun 02, 2009 10:58 PM

Tony and Suzanne Marriott, Associate Brokers

Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ

Haven Express @ Keller Williams Arizona Realty

We reward "good behavior" of Buyer Agents who have Buyers who purchase our short sale listings. "Bad behavior" is .... "discouraged".

Sep 05, 2010 03:29 AM