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Mike, no matter how you shape it, spin it, you are working on commission in the service industry. You are a salesman whether you like to be defined that way or not. You do not work behind a desk 8-5 balancing general ledgers or calling customers to pay on time. You interact w/people and the way they (CUSTOMERS) see you or how you present yourself has alot to do whether you get business or not.
I don't know or understand why you're ashamed as to describe your self that way? There's nothing shameful about it. I'm in ther service industry too on commission. Be proud of what you are.
CJ,
Shame? What did I miss? Quite the opposite, I will not be shamed...
Sure, I'm on commission. Frankly, I think many, many more people should be on commission.
I just don't accept the prior implication to which I responded, that since I am optimistic I must be a salesman, and concomitantly, a spin artist, i.e., a liar.
Integrity and service are not characteristics based on payment method, except for the weak of character.
Mike, no matter how you shape it, spin it, you are working on commission in the service industry. You are a salesman whether you like to be defined that way or not. You do not work behind a desk 8-5 balancing general ledgers or calling customers to pay on time. You interact w/people and the way they (CUSTOMERS) see you or how you present yourself has alot to do whether you get business or not.
I don't know or understand why you're ashamed as to describe your self that way? There's nothing shameful about it. I'm in ther service industry too on commission. Be proud of what you are.
I don't consider myself a salesmen. The only thing I have to sell are my services. Some agents act like salesmen or think they have to be but honestly we are more like consultants at this point. I've never "sold" a home. The home, at the end of the day, still has to sell itself. My job is to market and get people to come look so the home can sell itself (as a list agent).
As a buyer agent, my job is to open the doors until they find the home they want to buy (again, the home must sell itself). Once that home is found then my job is to help guide them through the transaction.
The housing market has been in full decline for almost two years in most markets. In fact, CNN Money ranked the housing bust as the most important news story of last year. How do you cope with it?
Out of curiosity, I'm fascinated to know if any realtors have prepared themselves for this bust. Did you know that the homebuying mania would slow down? Did you save any of your earnings from the past few years in anticipation of a bust? Do you still perform your job fulltime, or have you started working other jobs to cover the rent/mortgage? With the housing market in full decline, how do you market yourself to compete against all the other realtors that are fighting for buyers?
I know this may seem like it's coming across as an attack, but I'm fascinated with how an industry prepares itself for a full out bust.
I share Mike J's sentiments. I hope to close 50+ transactions this year and 10 million worth of inventory but that's still a relatively small market share overall. That number is higher than what I did last year but my business is still growing. Regardless of whether the market it trending up or down there will always be people needing to buy or sell.
Buyers should purchase with the aid of a commissioned professional! All business owners work on a commission. Name the business, I'll lead you to a commission based salary structure. No matter what the product, whether you call it margin or commission, it is the difference between the cost of goods and the sale price.
What you anti-commission people should refocus on is "value." What is the value you receive in exchange for the money you pay for a product or service.
I contend that personal effort has a direct effect on value received. Home buyers are spending four to eight years of salary to buy a home. One of the big reasons for the home mortgage crisis lies entirely on how unprepared buyers are to commit to such a purchase without knowing the risks or efforts required make such a purchase or mortgage.
Buyers should purchase with the aid of a commissioned professional! All business owners work on a commission. Name the business, I'll lead you to a commission based salary structure. No matter what the product, whether you call it margin or commission, it is the difference between the cost of goods and the sale price.
What you anti-commission people should refocus on is "value." What is the value you receive in exchange for the money you pay for a product or service.
I contend that personal effort has a direct effect on value received. Home buyers are spending four to eight years of salary to buy a home. One of the big reasons for the home mortgage crisis lies entirely on how unprepared buyers are to commit to such a purchase without knowing the risks or efforts required make such a purchase or mortgage.
Many commission based "professionals" help to draw hype and inflate an overpriced asset over the past 5 years.
Not making a sweeping statement of all realtors, just saying that many cheerleaders who's clients are now burned were paid on commission. I would argue that these folks did not prepare nor inform their clients with the possibility that their most valued asset may be worth less than they purchased it for. In some cases, substantially less.
Many commission based "professionals" help to draw hype and inflate an overpriced asset over the past 5 years.
Not making a sweeping statement of all realtors, just saying that many cheerleaders who's clients are now burned were paid on commission. I would argue that these folks did not prepare nor inform their clients with the possibility that their most valued asset may be worth less than they purchased it for. In some cases, substantially less.
Realtors always claim that "now is the time to buy"... but they never say for who... buyer or seller. But in all cases, now is the time to buy if you are a realtor... they're the only ones that stand to make money off a deal.
And as for a realtor not being a salesman... you say you provide a service, and that the house sells itself. Wouldn't a used car salesman make the same argument? In both cases, the buyers come to the salesperson... the salesperson hashes out a price and does the paperwork. How is selling houses different than selling cars? Realtors are "used house salesman", but with a better pay structure... you don't see used car salesmen bickering over 6%...
Realtors always claim that "now is the time to buy"... but they never say for who... buyer or seller. But in all cases, now is the time to buy if you are a realtor... they're the only ones that stand to make money off a deal.
And as for a realtor not being a salesman... you say you provide a service, and that the house sells itself. Wouldn't a used car salesman make the same argument? In both cases, the buyers come to the salesperson... the salesperson hashes out a price and does the paperwork. How is selling houses different than selling cars? Realtors are "used house salesman", but with a better pay structure... you don't see used car salesmen bickering over 6%...
Hold on!! Realtors are not the only one who stand to make money! If we are the listing agent, we are obligated (if its your house you expect it) to get every dollar we can negotiate. If we represent the buyer, we are obligated to help our client to get the best possible deal we can. By law, we are not price setters as only the seller can set the list price, and any offer the buyer makes we must submit.
Our clients whether buyers or sellers hire us to work on their behalf. One of the big no-no's that occurs now, is the buyer who searches for a home on-line and then buys a house from the listing broker/agent. A dual agent effectively becomes a no-agent for either party.
If we represent the buyer, we are obligated to help our client to get the best possible deal we can. By law, we are not price setters as only the seller can set the list price, and any offer the buyer makes we must submit.
Aren't you contradicting yourself there? In one sentence, you say you negotiate the price. In the next, you say only the seller and buyer set the price.
Realtors always claim that "now is the time to buy"... but they never say for who... buyer or seller. But in all cases, now is the time to buy if you are a realtor... they're the only ones that stand to make money off a deal.
And as for a realtor not being a salesman... you say you provide a service, and that the house sells itself. Wouldn't a used car salesman make the same argument? In both cases, the buyers come to the salesperson... the salesperson hashes out a price and does the paperwork. How is selling houses different than selling cars? Realtors are "used house salesman", but with a better pay structure... you don't see used car salesmen bickering over 6%...
Used car salesmen only have the cars on their lot. They need to keep you on their lot to get paid therefore they work very hard to sell you something on their lot.
Realtors working for a buyer are not limited by "lots". We can show any home on the market, including FSBO's. As long as you get a home you like at a price you like, we're happy too. So we aren't trying to sell you on any particular home (or shouldn't be). Realtors will negotiate on your behalf once you find the one you like. Car salesman negotiate on their own behalf, not yours. And you know exactly what the commission is, it's in black and white print.
Aren't you contradicting yourself there? In one sentence, you say you negotiate the price. In the next, you say only the seller and buyer set the price.
He's not. The seller decides list price. The buyer chooses offer price. If a buyer and seller agree on a sales price then they've set the price. The agents helped the buyer/seller find terms that both parties found acceptable.
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Commission vs Salary
