Just curious how real estate people are making ends meet. The "easy" money of listing and selling and taking people's equity has put a temporary freeze on your earnings. Just was curious as to what other means you all have at this time?
It was actually, to me, never easy money. Realtor's also never took people's equity...they paid for a service and we received payment for it, and everyone has a CHOICE to use a Realtor or not. Smart Realtors never have their eggs in one basket...there are certain markets of the sector that never go away regardless of what the economy does: First-time buyers, relocators, DINKS having babies, etc. Many of us have our hands in the investing and rental sides of the market.
This isn't the first time that there has been a leveling off in the real estate industry. Nor will it be the last. Think back to the 80's when people paid 12-15% interest on a home mortgage. Homes still sold and buyers still bought. In fact many people know that mortgage rates are still quite low and selection and motivation on the part of the seller are quite high. What's hapening now is that people who got into the industry thinking it was easy have paid out a lot of money with very little return. Real Estate Agents typically have a 90% turnover rate. That's up even more with the downturn in the market. That means that although there might be less business, there is also less competition. In addition, seasoned realtors are stepping out of the business (retiring). Real Estate agents are almost entirely independant contractors. We only get a paycheck when we sell a house. It's never an easy business when you have no idea where or when your next paycheck is coming. We get no benefits and no unemployment. That means we're always on the look out for a way to make additional money. Often that comes in the form of investments in rental properties or services associated with the rel estate industry. In regards to some of the other posts: Realtors are not responsible for obtaining a mortgage or home equity line. Financial information is confidential and I cannot call a mortgage broker and have them tell me what your income is are how you ntend to pay your mortgage. My role is to assist you in locating a home within the perameters that you set up.
Unfortunately real estate agents and REALTORS are making more money than ever selling the houses of people who were taken advantage of during the last few years and now must sell their houses becausethey cannot make their mortgage payments when the interest rate adjusts upward. This is a tragedy because the bulk of them did not represent their clients interests properly. That is the reason that we are in the credit crisis that we are in with the record number of foreclosures. The REALTORS and real estate agents did not do their jobs. They did not represent their clients interests. Now they are profiting from their client's tragedies and loss of their client's homes. I recommend that in any real eestate transaction that you hire an atorney who specializes in real estate law to represent your interests even if there is also a REALTOR or real estate agent involved. Also hire your own real estate appraiser to protect your interests. This should be a real estate appraiser who is not representing the lender's interest. Your interest is very different from that of the lender.
I'm sorry that you seem to have misunderstood a Realtor's job. Realtor's responsibilities include: 1. Finding homes that fit the needs of buyers, in a price range stated by the buyer. 2. Marketing a sellers home at a price that reflects area market conditions that is agreed upon by both agent and seller. 3. Guiding both buyers and sellers through the often complex legal process of transferring ownership of real property. Agents do not 'take people's equity'. We are paid a commission for services that result in a sale or purchase of property. And, as I am a responsible, professional Realtor and businessman, my sales and production is up from last year, and from the year before that and the year before that.
