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Could this be the end or the reduction of the discount or limited agencies

By
Real Estate Agent with RE/MAX

Over 1000 agents have fallen off the list, offices are closing or being bought out by the bigger companies.  Here in Indiana there are two major fees or dues coming up.  To add to that they have just increased them by over $200.00 a year.  Advertising and other services are gong up.  Will the agents that have made a living off giving the listing service away be able to make it.  I have been in closing were the listing broker did not make a dime, then there are many that are making under $500.00.  When you consider the average agent has one closing a month and the better ones having 4, how can many of these people and companies make it.  Are they getting other full time jobs and just doing this has a hobby?  If so then is it a good thing that this market is filtering out the week, leaving the strong to enjoy the market when it does turn around. 

With the cost involved with marketing each listing and just staying in business how can they make it, is full service fee (7%) a bad thing or a requirement.  Don't you feel you work hard for the money?  I guess only time will tell.

Brian Schulman
Coldwell Banker Residential Brokerage, Lancaster PA - Lancaster, PA
Lancaster County PA RealEstate Expert 717-951-5552

Marvin, in times like these, when it takes increasingly more work to sell homes, many discounters are going to be unable to afford the time and effort necessary to get their listings to settlement.

Feb 11, 2009 11:19 PM
Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

Marvin,

I work very hard for my customers which in turn translate into working hard for income.  For me it goes with the territory.  Many agents will again enter the market when the top of the market shifts,  It is those of us that have long term plans and goals that I believe will continue to thrive in all markets.

Best of luck

Feb 11, 2009 11:20 PM
Mark Ilderton
Exit Real Estate Consultants - Columbia, SC
RE Agent - Columbia South Carolina Real Estate

This is a great market to weed out the weak and the consumer wins with a professional who does deliver a valued service worthy of 7%. The not for profit agents will not make it and neither will their clients.

Feb 11, 2009 11:22 PM
Amanda Christiansen
Christiansen Group Realty (260)704-0843 - Fort Wayne, IN
Christiansen Group Realty

I think that times like these will weed out a lot of less than stellar agents.  Here in Fort Wayne I know a lot of agents that have already moved on to other things and say they will come back when times are good.  For me it's not a choice, this is what I am doing. 

Feb 11, 2009 11:22 PM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

I did a quick check in the MLS on one of our local limited service brokers.  Right now they have 73 listings.  Last year they sold 73 listings.  So at least in this case the slower market doesn't seem to be hurting their business.  In fact as more sellers are squeezed on equity I would think they might be looking at the lower rate options to sell their home and save some equity, if they have any left.  By the way the listings range in price from just over 100K to over 3M.

Feb 11, 2009 11:32 PM
Home Loan Search.Online
Home Loan Search Online - Newnan, GA

I think that some agents and brokerages are doing whatever they can do to stay in business. If that means charging less for a listing then they will do it. I know of one company that doesn't make much on the listing but helps the seller with a new purchase and they ALWAYS ask for referrals.

Feb 12, 2009 01:05 AM