Tuesday, March 24, 2009
REALTORS Welcome, Solutions for Slow Markets Offered
Today I'd like to talk to all the real estate agents out there. You know who you are. You're probably working for some broker of some conventional real estate company. You're probably experiencing a slow real estate market right now, and you might even be to the point where you need a part time job just to make ends meet. Its tough out there right now, and I wouldn't blame you one bit if you're re-thinking your career as a real estate agent. What can I do to use the skills I already have to make some extra money? At Home Grown Real Estate, we've got some interesting propositions for you that just might help you in this slow market.
First of all, I'd like to tell you that I understand exactly where you're coming from. During college I sold real estate to pay the bills, and it seemed to be either feast or famine in those days. Some months were covered up, and some months were bone dry. These days many Real Estate Agents are experiencing more famine than feast. So I bring to you a list of solutions that Home Grown Real Estate can provide to you as you try to wade through this tough market.
Solution #1 - Profit Share for Recruiting
We've seen this one done before. Companies like Keller Williams Realty and Exit Realty are successfully turning their agents into recruiters, because when their recruit makes a sale, they get paid too! At Home Grown Real Estate, we offer exactly the same type of recruiting incentive. If you bring in someone to Home Grown Real Estate, every time that individual makes a sale, you'll get 10% of the company's portion of that commission.
So, let's do the math: You recruit Joe into the company, and Joe has a 70%/30% commission split, and he sells a house for $200,000. That means that Joe walks away from closing with $4,200, the company brings in $1,800, and of that $1,800, you get a check for $180. Now, $180 may not sound like big bucks, but if you multiply that times 5 people you've brought into the company, that's an extra $900. And an easy $900 too! All you did was invite him to come work at Home Grown Real Estate.
Solution #2 - Become a Construction Consultant
The great thing about Home Grown Real Estate is that our sister company, Harmony Building and Construction is available to do all of our repairs, remodeling, and new construction. This allows us to offer one more service to our clients and one more reason to keep in touch with them. At Home Grown Real Estate, our agents become Construction Consultants for Harmony Building and Construction as well. What this means is that you can also "sell" the construction company's services and be paid a commission for the projects that the company is awarded. Imagine that you've just sold a house to the Smiths, and they realize that its going to need a little work done to it before they can move in. You discuss with them the different repairs the house needs, fill out a work order, and our estimator will come and give them a price. If the company is awarded the job, you'll get paid 3% commission on the price of the job.
So, let's do the math. I just got us a $2,500 flooring job the other day. That means upon completion of the project and collection of payment, I will receive a check for $75. Now, $75 doesn't seem like much, but if it is a $15,000 remodel job, I'll receive a check for $450. Now, that's not bad money! Most good agents will help their clients figure out what repairs are needed to a house, and will help them select a contractor, so why not get paid for doing it? History shows that when real estate sales are down, remodels are up. Why not bring home a portion of that, too, while you're waiting for your listings to sell.
And just to be clear, this is not an illegal kickback or finding fee or anything like that. You will be a construction consultant of Harmony Building and Construction, and as such are entitled to compensation if you generate business for the company in which you work. For more information, I refer you to THIS article from the Alabama Real Estate Commission website regarding gifts, rebates, and kickbacks, particularly the final paragraph of the article.
Now, I've gone over two extra ways you can earn money aside from your own real estate sales. I know of no other real estate company that can offer you this. And the best part is, we're locally owned and operated, so if we see that one approach isn't working so well, we have the flexibility to change things as we go!
If you feel like this is the right thing for you, please speak with one of our agents or contact me if you have any questions.
Joshua Pettus
President and Associate Broker
Home Grown Real Estate
http://www.homegrownrealestate.net
http://homegrownrealestate.blogspot.com
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