Tuesday, November 6, 2007

Talk me out of this

I'm thinking about jumping in. Everyday on my drive to work I pass one of those "Real Estate license in 5 weeks signs," funny I saw one in Vancouver this weekend too, anyway, I'm thinking about jumping in to that pool. Not because I want to buy and sell real estate for a living, but because you have to learn to think like your opposition if you want to beat them at their own game. May as well get the training right?

Last month there were 1200 Realtors in Victoria and 708 sales for a sales to Realtor ratio of 0.59. The median commission for those 60% of Realtors fortunate enough to make a sale on a house was roughly $23,000. The agency takes half, leaving $11,500, minus advertising and expenses, and paying a share of the commission to the buyers agent, say $4K or so. I'm guessing that if a Realtor sold a house here in the median range they're pocketing about $6K.

But we all know that like all sales related businesses, it's the top 20% that do 80% of the business. I'm guessing that even though there were record sales here, there were also at least 50% of Realtors who didn't make a dime last month. I wonder what the turnover rate in RE offices are like these days?

Anyway, I've digressed. Anyone take the licensing course? Tell me what I need to know. This might be a fun winter blogging project. Maybe I can infiltrate the industry through the back door and expose the unethical practices that are going on? Is it still OK to be licensed and work a job outside the industry? Funny how few other sales-related professions allow this practice, think financial advisors etc. Anyway, tell me what you know.

When I sell my first luxury townhouse, I'll buy you all a bear. Oops, I meant beer.

12 comments:

Anonymous said...

I'd suggest that you post an ad on Craiglist looking for RE Licensing texts - there was a chap on there a month or two ago selling his lot for $100, never used.

Also, check out the RE Board site as they have a pretty realistic overview of what it takes to make it. There are a ton of professional fees and licenses to maintain each year ($2k or so a year to my recollection, but this may be way off).

HHV, you are sounding a bit panicky to me lately. I am a firm believer in everything happens the way it's meant to happen in the universe, and the stars will align to point you to what you need. Chill, man! It'll all work out.

Anonymous said...

Dont do it HHV, dont go to the dark side.
I have a good friend in Vancouver who gave up her great job, single mom, last November. Course was boring, then she had to beg, borrow and steal to get clients, get a company to take her on and she shelled out a mint in advertising, getting set up, clothes etc. This was amidst the plethora of other newbies all looking for mentors.
At first she thought the struggle was worth it, she had a few sales, a few fractional commissions from helping other realtors.
I saw her last week and she is stressed right out, not eating or sleeping. Money not flowing as well, using up her line of credit, difficult greedy clients. She says she wants out.
Save yourself man, dont give in to the temptation.

Anonymous said...

"I wonder what the turnover rates in RE offices are like these days?"

Judging from the constant appearance in the T/C RE sections of ads from local RE companies announcing "So-and-so has recently joined our Team and is poised with his/her massive expertise to help YOU!" - probably pretty high.

VicREBear

roger said...

HHV,

If you want to really help homeowners you should give out financial advice.

Aleks said...

I'd imagine that rather than exposing unethical practices and institutional corruption, you'd just expose that new Realtors are undertrained and utterly unprepared for the job. But you ought to be able to figure that out just by talking to a lot of new realtors.

roger said...

Here is one agent who opposes
the unethical practice of re-listing

Anonymous said...

I'd say that diving in to swim with sharks right when they are about to run out of food is indeed not a good idea, however amusing it might be in a dark way.

Anonymous said...

Hi Roger,

What is interesting is that if you have a good re agent they can let you know how long it has been on the market even when it has been re-listed.

Saw the house the other day that we were thinking of buying. My RE said it had been on the market 40 days, then re-listed 90 days, then re-listed 20 days. He told me he thought it would not be a good move. I was impressed.

Anyway, anyone who is considering buying a house should ask how long and you want to know all the re-listing because the agents have access to it.

hhv said...

I should clarify that I would take the course only for information, not to sell real estate. I'm a lousy salesperson... the whole selling a luxury townhouse was tongue in cheek. Roger, that's a very interesting link. Thanks.

roger said...

HHV,

This is goung to cost you some dough and you have to take an appitude test first.

Details @ www.bcrea.bc.ca/potential/potential.htm

vg said...

HHV, you are sounding a bit panicky to me lately. I am a firm believer in everything happens the way it's meant to happen in the universe, and the stars will align to point you to what you need. Chill, man! It'll all work out."

I agree, chill out HHV,you have mentioned moving from here,not anticipating a correction of 30% anymore ( which I find very disheartening after all this time )and now jumping into the dark side with the slimy agents who want to hose you and not lose any sleep over it. Put your mind on something else like shorting the DOW or something,please. :)

Anonymous said...

I don't think it's fair to back-stab all realtors, although the percentage of slimeballs could be high, in that profession.

I've known several decent, ethical ones during 26 years. Those are mostly the ones that last. Sadly, though, a lot become sneaky, including some older ones.

All told, I think HHV should do the course. It takes 6 months of study. You can never be over-educated these days. You may well find your niche