"YOU FOLKS MAKE SO MUCH MONEY, AND WHAT WORK DO YOU DO FOR IT?"
That seems to be the prevailing attitude among the general consumer public, isn't it?
Years ago, when I was considering Real Estate as a full-time profession, one of my relatives encouraged me! "You're an independent guy," she said. "Every Real Estate Agent I know gets up mid-morning, has breakfast about 11 AM, hangs out with his buddies, and rakes in lots of money! Ahhh - that's the life!"
Those of us that have been in the business in excess of about three months know that is far from the truth! But, the perception continues - especially when prospective sellers ask us to reduce our fees (never say "COMMISSION!") "Since you'll walk away from thousands of dollars from my sale," we imagine many to think. "Of course, you can give us a break!"
Well, the latest National Association of Realtors Statistics counter that perception. According to NAR, the median income for a practicing Realtor, who is also an Association Member, was $42,000 in 2007. This was down 11% from its 2006 median.
Those new to the business - with less than two years experience - earned a median $10,500 last year.
I don't know what it's like where you live, but these medians don't provide you with a luxury lifestyle here in Chicago!
Of course, Realtors with greater experience earn quite a bit more - those with 16 or more years experience reported a median income of $69,000. Better - but not "gas up the yacht" income!
We all know that we veterans have stuck through the strong times and the weak times, continue to commit and improve our business, and might earn considerably more. But it's all through our hard work, developed skills, and ingenuity.
Not necessarily who we have coffee with each morning!
The current real estate market doldrums have not been taken into account in the latest NAR figures; many expect a median income dip next year, after 2008 figures are analyzed.
Also, plan to expect an agent-count decrease as well. NAR Members, which represent about 50% of all Real Estate Licensees nationwide, topped out at 1.36 Million during Boom-Year 2006. Current membership - roughly 1.2 Million, a decrease of nearly 12% from two-year-ago levels.
See Mary Umberger's column in the June 1 edition of The Chicago Tribune for more info.
DEAN & DEAN'S TEAM CHICAGO
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