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How Are Realtors Dealing With Gas Prices??

By
Real Estate Agent with Century 21

We all know real estate agents live in their cars. So when the cost of operating a vehicle doubles and we are in a slow market, how does a real estate agent cope?

My guess would be most real estate agents will try to cut down on extra driving and combining trips. But it also may be a worry that does not have too much bearing on the situation for a busy agent. An extra 100 dollars a week in gas is not going to hurt a top producer.

But for the agent that is doing a marginal business could the gas prices be the final straw?

Joseph Goodman*ABR*GRI*SRES*
Century 21 - Mount Juliet, TN

Some real estate agents are coping with $4-a-gallon gas by changing their driving routines and scrutinizing prospective clients to make sure they're serious about buying or selling.
The strategies help control costs for agents who spend a lot of time behind the wheel but don't get reimbursed for mileage because they are sole proprietors or work as independent contractors.

Jun 10, 2008 12:53 PM
Mike Klijanowicz
Cummings & Co. Realtors - Perry Hall, MD
Associate Broker @ Cummings & Co. Realtors

I am really utilizing the AUTOMATIC EMAIL FUNCTION for ALL of my buyer clients to limit what they want to see and then trying to schedule ALL of the homes on the same day.  I also encourage them to drive around the different areas prior to going out if possible so they can further define what areas that they would like to be in.

Jun 10, 2008 01:00 PM
Donna Harris
Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com - Austin, TX
Realtor,Mediator,Ombudsman,Property Tax Arbitrator

I have not changed my habits. Granted, I'm one of those busier agents you mentioned, but before the current market, I had rules.  The biggest rule was that no one got in my car unless they were fully approved for a loan, not just pre-qualified.  They either had to talk with one of my lenders, or I had to talk with theirs.  The second rule is I have the buyers drive by the list of 20+ properties to check out neighborhoods and drive-times to their offices before we narrow the list down to serious properties to view.  Why should I play choufuer to view houses that are outside of their driving radius.  The only one who can figure that out is the actual buyer, and I'm not part of that decision... lots of gas saved.

Jun 10, 2008 01:00 PM
Russ Ravary ~ Metro Detroit Realtor call (248) 310-6239
Real Estate One - Commerce, MI
Michigan homes for sale ~ yesmyrealtor@gmail.com

I always just think of gas as just another expense.  In order to stay in business you have to spend.  

Jun 10, 2008 01:04 PM
Carol Perez
Tarbell Realtors - Upland, CA

I make sure the buyers are serious.  I use to take buyers out who were on the fence and not pre-approved just to get them to trust me.  Those days are long gone but I know it will make me a better business person because of it.

Jun 10, 2008 01:07 PM
Jimmy McCall
JimmyMcCall.com - Cunningham, TN
The Ex-Mortgage Consultant

Joseph,  It looks like gasoline is going to be a hot topic in the Rain for some time to come.  I am thinking about a scooter myself.

Jun 10, 2008 01:08 PM
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

Besides learning how to operate my car more effeciantly I have narrowed down my home tours to only those that I may have a serious buyer for.

Jun 10, 2008 01:13 PM
Jeannette Neerpat
CondoDomain.com - Coral Springs, FL
e-Pro Coral Springs/Parkland Real Estate

Make sure your buyers are serious enough to take the time to drive them around!

Jun 10, 2008 01:15 PM
Karen Monsour
Coldwell Banker Fort Lauderdale Beach - Fort Lauderdale, FL
REALTOR, SSRS - Sells FL Waterfront, Short Sale Expert!

It's terrible...I used to go out and market myself and now...I plan my day around the serious buyer's and make sure that I end up close to my marketing area's...I'm busy, only from marketing,,,I still don't want to waste money on gasoline. Good post...

Does anyone have any sympathy for Real Estate agents, the market is about bottomed out, everyone is looking, but not everyone is qualified, geeze, between gas prices and the market...dig me a ditch...not too deep though...I feel a turn coming...hanging in there.

Jun 10, 2008 01:19 PM
John Novak
Keller Williams Realty The Marketplace - Las Vegas, NV
Henderson, Las Vegas and Summerlin Real Estate

Once gas hit the $4.00 mark, I started consolidating trips and really scrutinizing my schedule to eliminate extra trips to the office. I really like Donna's idea of the buyers driving by properties to get a feel for neighborhoods and commute times. Combined with a buyer agency agreement, that's a smart business strategy moving forward.

Jun 10, 2008 01:25 PM
Rob Muller
ReMax Town & Country - Canton, GA
Cherokee County Real Estate

I really haven't changed too much. I do try to make sure that I have serious buyers before I spend the day driving around. Other than that- it is something I need for buisness... so I just make it work.

Jun 10, 2008 01:36 PM
Vickie McCartney
Maverick Realty - Owensboro, KY
Broker, Real Estate Agent Owensboro KY

Joseph~ I know I am scheduling my trips more carefully and sometimes not driving at all unless absolutely necessary and making sure buyers are serious and not "just looking".

Jun 10, 2008 01:42 PM