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The 80/20 rule applies to RE agents just like any other field. 80% of money made by RE agents is made by 20% of the agent pool. What this means is there are few agents that knock it out of the park, but most are mediocre at best.
The 80/20 rule applies to RE agents just like any other field. 80% of money made by RE agents is made by 20% of the agent pool. What this means is there are few agents that knock it out of the park, but most are mediocre at best.
What too many people miss, though, is the number of licensees who maintain an active license just to keep it from expiring, with no intent to broker transactions.
They may be investors, although holding a license just increases liability for an investor. But, they add to the 80% headcount without being a factor otherwise, and there are a lot of them.
Additionally, mega-teams may record all business in the Rainmaker's name, with several licensees contributing and getting no credit.
Overall, though, yes, the majority of business is written by a minority of agents.
I decided having a license would be a hinderance as an investor... I took and passed the test in California... so no issue there... I did not send back the money.
It was better for me to have a couple of quality brokers/agents looking out from property that I might like and knowing they would not have to split any commissions.
I have one broker brother that has held his license for 25 years... never collected a commission... he manages shopping centers in the Western United States... big ones plus a portfolio of Hotels...
Funny thing when he went to buy his ranch... he dealt with the listing broker who found out my brother was also a broker... at closing his price was reduced by 25% of the commission and he never asked it... the broker told him ranch property can be difficult and by rebating commission her liability would be reduced... he he bought a nice ranch tractor with the money...
His firm also protects agents... they want everyone to bring them deals and one way to do this is by paying full commissions... either the deal makes sense or it doesn't.
Last edited by Ultrarunner; 12-24-2015 at 02:00 PM..
I decided having a license would be a hinderance as an investor... I took and passed the test in California... so no issue there... I did not send back the money.
It was better for me to have a couple of quality brokers/agents looking out from property that I might like and knowing they would not have to split any commissions.
I have one broker brother that has held his license for 25 years... never collected a commission... he manages shopping centers in the Western United States... big ones plus a portfolio of Hotels...
Funny thing when he went to buy his ranch... he dealt with the listing broker who found out my brother was also a broker... at closing his price was reduced by 25% of the commission and he never asked it... the broker told him ranch property can be difficult and by rebating commission her liability would be reduced... he he bought a nice ranch tractor with the money...
His firm also protects agents... they want everyone to bring them deals and one way to do this is by paying full commissions... either the deal the makes sense of it doesn't.
That is another good point.
Property management is a licensee function, and most of those guys never make a sale.
Who would vet the mentors?
Some old-line firms are so inbred, you see the same errors coming from noobies that the "seasoned" mentors commit.
Here, the BIC is required to completely supervise provisional brokers, those who have not completed their post-licensing coursework. I question how well that is accomplished.
I think 8 hours of CE annually without a test of any sort is very low. And, agents look at is as a burden.
24 hours, and with some testing, would be more reasonable.
I would like to see a certain number of transactions required before you can take the principal broker class and test. I'd also like to see more classes for principal brokers.
Out here it is 15 hours a year in specific topics. You can't use a "How to use FB" as a CE class out here, for example.
It seems a lot of lawyers here pick up broker licenses and having a law degree substitutes for some of the requirements...
Also... in my small circle... there are a lot of brokers that have zero experience in the single family residential market... they are Real Estate Portfolio Managers and handle very large complexes and commercial/institutional property...
Also... in my small circle... there are a lot of brokers that have zero experience in the single family residential market... they are Real Estate Portfolio Managers and handle very large complexes and commercial/institutional property...
Yes. In Oregon, there was actually discussion (and still is) about having two separate licenses, commercial and residential. They are two different beasts and really consumers should know if their agent has training in the right area.
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