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I find it interesting that Real Estate agents seem to be the only profession where the sale person expects to be paid for their time no matter what. The car salesman doesn't require you pay for his time if you test drive a car and discuss pricing for an hour, does he? Salesmen figure that you get 1 sale for every 10 contacts/pitches you make. Why isn't this the same with Real Estate agents??
You should have to show your worth to the potential client, then if you do a good job, you get a commission based on the sale. If you do a poor job with negotiations, searching, communication, etc. you get fired and don't get squat.
What's wrong with that?
What the heck are you talking about? First of all real estate agents get nothing if they don't sell the home for their sellers or if their buyers decide not to buy.
Secondly, lawyers normally get paid win or lose. Doctors get paid whether they cure you or not. Mechanics get paid even when they don't entirely fix the issue or misdiagnose it. Even the Wal-Mart employee gets paid hourly for their time and aren't they actually salespersons? Doctors, lawyers, mechanics are all salespersons also. They have to convince you to to do business with them as a consultant doing a service for you, and that my friend is selling a service same as a real estate agent sells a service.
Thirdly, a car salesmen and a real estate agent really aren't that comparable as far as professions go despite the general common misconception. Think a real estate agent as a business owner just on a smaller scale than a person that owns a store or an office.
What the heck are you talking about? First of all real estate agents get nothing if they don't sell the home for their sellers or if their buyers decide not to buy.
Secondly, lawyers normally get paid win or lose. Doctors get paid whether they cure you or not. Mechanics get paid even when they don't entirely fix the issue or misdiagnose it. Even the Wal-Mart employee gets paid hourly for their time and aren't they actually salespersons? Doctors, lawyers, mechanics are all salespersons also. They have to convince you to to do business with them as a consultant doing a service for you, and that my friend is selling a service same as a real estate agent sells a service.
Thirdly, a car salesmen and a real estate agent really aren't that comparable as far as professions go despite the general common misconception. Think a real estate agent as a business owner just on a smaller scale than a person that owns a store or an office.
A doctors primary role is the treatment of sickness. The real estate agent's primary role is the sale of realestate. That is why the doctor is not a sales person and the real estate agent is. The vast majority of doctors(who do not own a practice), mechanics etc spend little if any time selling their services. That is handled separately and they have nothing to do with it.
A doctors primary role is the treatment of sickness. The real estate agent's primary role is the sale of realestate. That is why the doctor is not a sales person and the real estate agent is. The vast majority of doctors(who do not own a practice), mechanics etc spend little if any time selling their services. That is handled separately and they have nothing to do with it.
Not for the doctor or mechanic or attorney that owns the business. If real estate is done properly the agent is a consultant that assists the client in their goal of buying or selling real estate. The agent isn't tricking people off the streets into buying homes they don't want with some crazy Realtor mind trick. The client has an objective, the agent sells a service just like the doctor/mechanic/lawyer/etc.
If you can't wrap your mind around the idea that any business owner must create business to generate income, therefore being a saleperson in that aspect, then I can't help you.
Not for the doctor or mechanic or attorney that owns the business. If real estate is done properly the agent is a consultant that assists the client in their goal of buying or selling real estate. The agent isn't tricking people off the streets into buying homes they don't want with some crazy Realtor mind trick. The client has an objective, the agent sells a service just like the doctor/mechanic/lawyer/etc.
If you can't wrap your mind around the idea that any business owner must create business to generate income, therefore being a saleperson in that aspect, then I can't help you.
This is a mindset that is the major cause of a LOT of businesses of every kind failing early in the game, because the person founding the business doesn't get that, yes, the owner/operator of ANY business is a sales person and if they don't have those skills or know enough to hire someone who does (and have the money to do that right off the bat), then the business is, sadly, no matter how excellent the product, going to fail. Because no one will know that it's there and they will have no customers/clients to purchase their goods/services in order for them to be able to pay the bills.
Well said Brandon. Not all agents are the same. Some of us love our job and work hard to have a good reputation and treat our clients like family members. Unfortunately, like all professions, some agents are awful. People really need to interview agents before they hire them and get references.
Not for the doctor or mechanic or attorney that owns the business. If real estate is done properly the agent is a consultant that assists the client in their goal of buying or selling real estate. The agent isn't tricking people off the streets into buying homes they don't want with some crazy Realtor mind trick. The client has an objective, the agent sells a service just like the doctor/mechanic/lawyer/etc.
If you can't wrap your mind around the idea that any business owner must create business to generate income, therefore being a saleperson in that aspect, then I can't help you.
Quote:
Originally Posted by TexasHorseLady
This is a mindset that is the major cause of a LOT of businesses of every kind failing early in the game, because the person founding the business doesn't get that, yes, the owner/operator of ANY business is a sales person and if they don't have those skills or know enough to hire someone who does (and have the money to do that right off the bat), then the business is, sadly, no matter how excellent the product, going to fail. Because no one will know that it's there and they will have no customers/clients to purchase their goods/services in order for them to be able to pay the bills.
Are you really trying to tell me the doctor operating on me in the emergency room is a salesmen first and foremost and that is primary role is selling his services instead of performing an operation? Give me a break! The realtor is selling a service of selling real estate. That's it(not to say thats a valuable service but their primary role(really only role) is sales. The doctor or mechanic or whatever primary role is curing or preventing disease performing mechanical repairs, designs, so they are not salesmen. Any mechanic whose primary role is working on cars is not a salesmen, any doctor who's primary role is doing research or works on patients is not a salesmen(or even someone who's primary duty is managing practice or shop).
The owner of my employer is not a salesmen, he is an engineer. He hires someone else(actually several other people) to do that. The owner of any business is not always a salesman that is just false.
Are you really trying to tell me the doctor operating on me in the emergency room is a salesmen first and foremost and that is primary role is selling his services instead of performing an operation? Give me a break! The realtor is selling a service of selling real estate. That's it(not to say thats a valuable service but their primary role(really only role) is sales. The doctor or mechanic or whatever primary role is curing or preventing disease performing mechanical repairs, designs, so they are not salesmen. Any mechanic whose primary role is working on cars is not a salesmen, any doctor who's primary role is doing research or works on patients is not a salesmen(or even someone who's primary duty is managing practice or shop).
The owner of my employer is not a salesmen, he is an engineer. He hires someone else(actually several other people) to do that. The owner of any business is not always a salesman that is just false.
"The realtor is selling a service..." Good so far. "...of selling real estate." Whoops. Wrong. Fumbled at the goal line. The service is representation of buyers and sellers, and marketing homes for sellers. Good fiduciary representation of the client is the service, and sometimes that means avoiding a sale.
"Any mechanic whose primary role is working on cars is not a salesmen..." And wrong here, when talking about an owner-operator. He won't fix many cars if he can't sell his services and skills. I've been to too many garages where the mechanic could not talk to me and ergo could not earn my business.
And definitely, the emergency room physician is a great example of a sales role that isn't obvious on the surface to many folks. He first sold the hospital on his services, his skills and reliability, etc. If he hadn't closed that deal to get a contract, he wouldn't be there.
Someone bought what he was selling, or he would be hanging his own shingle and selling service to the public via advertising, marketing, etc.
People who don't work in sales often don't recognize the dynamics of persuasion that infiltrate every level of business.
People who don't work in real estate, or other service sales, often do not recognize the various levels at which an agent works to garner business.
One nearly foolproof way to spot a sales job is to observe for trial closes. I may do trial closes in a listing or buyer consultation, where I am selling my services. But, I don't do trial closes to clients, because I am consulting them, not selling a house to them.
I will certainly sell and trial close folks (or their agents) who are NOT clients, but are looking at one of my listings, because I have told my client, the seller, that I will try to sell their home. But many agents look like idiots when they try to overcome all objections to a property as they "sell."
Last edited by MikeJaquish; 10-31-2010 at 06:10 PM..
I have a question. I hate the buyer broker contract. I hate having to use it. I know it is suppose to protect the Realtor, but I feel like they make me look bad every time I have to fill one out with a client. I think they seem pushy and could scare some people off.
My question is this. To you other Realtors, have any of you ever enforced one where a buyer had to pay you compensation out of their own pocket? Does anyone really do that? See, to me they aren't worth the paper they are written on. If a buyer screwed me over I wouldn't go after them anyway. When it got around that I did it I think everyone out there would side with that buyer and it would hurt my business because people would just think me evil.
To all buyers and sellers out there what I have just said is not advice to ignore any agreements you may have signed.
"The realtor is selling a service..." Good so far. "...of selling real estate." Whoops. Wrong. Fumbled at the goal line. The service is representation of buyers and sellers, and marketing homes for sellers. Good fiduciary representation of the client is the service, and sometimes that means avoiding a sale.
When does the realtor get paid? Does he get paid when he provides good fiduciary representation or does he get paid when the house is sold successfully? I think that answers that question.
Quote:
Originally Posted by MikeJaquish
"Any mechanic whose primary role is working on cars is not a salesmen..." And wrong here, when talking about an owner-operator. He won't fix many cars if he can't sell his services and skills. I've been to too many garages where the mechanic could not talk to me and ergo could not earn my business.
Why are you limiting this to owner operators? What is the percentage of mechanics that are owner operators? Nice way to sidestep the issue. YOu said in your first post that all mechanics are salesmen. That is not case. Most people to not choose mechanics based on their ability to socialize with the customer.
Quote:
Originally Posted by MikeJaquish
And definitely, the emergency room physician is a great example of a sales role that isn't obvious on the surface to many folks. He first sold the hospital on his services, his skills and reliability, etc. If he hadn't closed that deal to get a contract, he wouldn't be there.
When the doctor was interviewing with hospital he of course wasn't affiliated with the hospital and wasn't a doctor yet. So no in his role as doctor, not potential employee he is not a salesmen.
I have a question. I hate the buyer broker contract. I hate having to use it. I know it is suppose to protect the Realtor, but I feel like they make me look bad every time I have to fill one out with a client. I think they seem pushy and could scare some people off.
My question is this. To you other Realtors, have any of you ever enforced one where a buyer had to pay you compensation out of their own pocket? Does anyone really do that? See, to me they aren't worth the paper they are written on. If a buyer screwed me over I wouldn't go after them anyway. When it got around that I did it I think everyone out there would side with that buyer and it would hurt my business because people would just think me evil.
To all buyers and sellers out there what I have just said is not advice to ignore any agreements you may have signed.
First I am not a Realtor, but work closely with them and worked "in-house" for 5 years w/ a local KW office and this opinion is based on my observations.
The Buyer Broker Agreement plays a very important role - if you don't get one, you are setting the stage that your time is not worth anything. The agreement keeps the lookie-loos to a minimum, you know the buyers that will go from Realtor to Realtor just to view homes. Some agents will show one or two homes before bring up the agreement.......some will go out for an entire day. Each has their own style on when to bring it up, but the more successful agents, the ones that continually write the business, get the agreements signed. It says, "my time is valuable, I don't waste my time on insincere buyers."
As for enforcing one, yes, but it's very, very rare, and usually, only in the most abusive relationships by the buyer.
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