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 We always hear that energy prices affect the whole economy due to the fact that they are a built-in cost to most businesses. These effects are more obvious in some businesses than others. For instance, the airline industry has always been known to rise and fall with energy prices and so it should. Airlines consume the most fuel out of every organization excluding the government. No wonder, airlines keep raising fares and cutting service to stay afloat. 

But then started considering its effects on our industry. Everyone knows that agents drive a lot and fuel is certainly one item in our income and expense statements. While it is not as vital an item to us as to airlines, I wonder if there will ever be a tipping point beyond which agents will start changing their habits, or even worse their entire strategies depending on energy prices.

As I'm sure many of you do as well, I drive a lot. I mean A LOT. Last year my average mileage was 5000 miles/month. So far it has not bothered me a bit. I consider gas consumption as something that comes with the territory. In other words, if you don't like the outdoors, don't go hiking, right? But this is deeper than that. What if, gas went to $5.00/gallon? Would that make you change your overall strategy and force you to become an agent specializing only in a limited area to curb the amount that you drive?

I am very curious to know.

 

Content property of Houston Real Estate

 

6 Comments on Gas Prices and the Real Estate Business

Gasp!!! Higher than here in Ohio - don't send them up here. Have you seen www.gasbuddy.com yet? It tells you where in town to find the best price.

 Barb

03/16/2008 01:28 PM by Barb Corsa (SendOutCards Ind. Distributor #32451 )


I would not cut down the territory I drive in, but what I would consider doing is charging a retainer fee to my Buyer Clients. The retainer fee would be applied as a credit against the total earned commission due my Agency. If the Buyers a customers I will probably be not as willing to "take them around and build a relationship" before signing a Agency agreement, in short I'll be screening by Buyer prospects more.

03/16/2008 01:32 PM by Christopher Bonta,Realtor/ Integrity and Honesty (The Masiello Group)


I might buy a more gas efficent vehicle to offset costs. 

03/16/2008 01:41 PM by Scott Hutchinson- Lago Vista Real Estate (REAL ESTATE)


Actually Scott, I have had my eye on the Camry Hybrid for some time now. I just don't know about driving a Prius in Texas though. People give you those "tree hugger" dirty looks down here. :-)

03/16/2008 01:51 PM by Signature Real Estate


Erion,

I drive about 25 miles a week, or 100 miles a month. I work and live in a Urban Area so I never go to the Suburbs and I do a lot of showings by hoofing it.

03/16/2008 01:55 PM by Jane Wallace CRS, Denver Real Estate (Kentwood City Properties)


I'll be giving my realtors gas cards from here on out!!

03/16/2008 02:00 PM by Amanda Schick (Estridge)


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Real Estate Brokerage: Signature Real Estate
Erion Shehaj - Houston Real Estate Broker
Houston, TX
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Signature Real Estate

Office Phone: (713) 952-3200
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