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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Tradelite who wrote (77942)	5/21/2007 6:13:05 PM
From: Think4Yourself	Read Replies (3) \| Respond to of 306849

This is the first year I have made the prediction. I have also been aware for quite some time about the Fed's action against the NAR. I am also up on the technology changes in information systems, unlike those who think it's the same old story. The days of the Realtor monopoly are numbered as the showing houses on the web is just the tip of the IT iceberg. Everyone will understand that in a few years. I will address your issues but first want to mention that there is one area you didn't mention that I believe justifies the existence of the Realtor. That argument is convenience and trust. You don't want to be showing your own home all the time, and you want a close record of people let in to see your home when you are gone. Your training issue kind of makes me want to laugh. Do you even have to have a college degree to become a Realtor? I think it's (still) no more difficult than a month of night school and taking a test. Much easier than becoming an auto mechanic electrician, or computer programmer. Then it's a lot of work, just like any other job. All those occupations require continual training. As for the gas and auto, they are business expenses that can be written off. Technology is also allowing people to do a lot of the grunt work up front, before they ever even walk into the home. That means fewer homes actually visited for people who know what they are looking for. As for the rest of your cost arguments, do you REALLY think those costs justify tens of thousands of dollars in revenue for each house sold? Just look at what you are saying. You are trying to claim that paper, ink, photos and secretaries justify tens of thousands of dollars for the real estate profession on every house sold. Sounds more like basic costs of running any business to me. Again, I am not saying the concept of the Realtor is dead. I am saying their monopoly is dead. Their foolishness in charging 6% on a 500K+ home guarantees that. That is a ridiculous transaction cost, even if it is getting split up 4 ways. Selling an individual house MIGHT involve 40 hours work and a few thousand dollars in marketing costs.

To: Tradelite who wrote (77942)	5/21/2007 7:35:40 PM
From: bobby is sleepless in seattle	Read Replies (1) \| Respond to of 306849

Without a doubt, it does cost a bunch more as an agent. How often have I heard how ez it is to become an agent only to see agent after agent wash out because money reserves ran dry or the expenses made its way for a slow death in the business. The real death of an agent is the inability to procure clients. How many people know how to cold call? Work expd canceled's? Aggressive yet passive to inspire a buyer to hook into the agent at an open house, etc...? Bottom line, it does require work in most instances. There are plenty of Mike Ferry seminars and rah rah type coaches out there to teach a new licensee to script their way to becoming successful in this business. There is no secret. But application of it is a huge barrier...Maybe the real death with the masses who fall out of the business after working family and friends is fear of rejection... Professional? OK, I see it, and it helps to be the chameleon. But, figure out a system, work it with nearly 70% effort toward procuring new buyer and sellers and you have a developing recipe for success... Oh yes, referrals are the way for the experienced agent. But, better have a system to work the referral base or they too, will expire themselves to the pasture... Entry requirements for a licensee are a joke. Now, certain states are tuning it up and requiring more education, and in certain situations, requiring a broker designation (Colorado, I believe) to sell homes. Washington requirements have looked at this hard and I would be tickled pink if a broker designation to sell homes became a prerequisite! This has been kicked around for five or so years. But, I would think the powers that be realize this would cut heavily into the licensing revenue given to the state. Will agents disappear? Commissions continue to decrease? There is a point of diminishing return but where is that point? Buying and selling homes is not like trading stocks (well, ok maybe for some flippers out there). Give a contract for interpretation to the buyer/seller who performs the task maybe once every 7-10 years and if they are up for the headache, go for it. Maybe they are resourceful enough to find a blended brokerage firm or FSBO it and work it into their busy to less than busy schedule.