Real Estate As A Business Is Ridiculous
Let’s me be very clear. I have been involved in the trading of Real Estate for more then two decades. I am a Broker, Manager, Career Coach and Mentor.
So, why would I call this a Ridiculous business?
In any normal business accounts receivable can be from 30-60 days. In Real Estate a sales person could wait as long as three years (new condos) to get paid. Ridiculous?
In any normal business a sales person - being supplied with all the facilities and equipment, training and systems, back-up and support – would get between 10-15 percent as a commission of gross sales. In Real Estate, a sales person - being supplied with all the facilities and equipment, training and systems, back-up and support – could end up with as much as 100 percent less a fee of his gross sales. Ridiculous?
In any normal business the worker is paid by the company for work done. In Real Estate, the sales person who does the work actually pays the Brokerage. Ridiculous?
In any normal business, the sales person provides the customer or client with a product or service for which the customer or client pays the company. End of story. In Real Estate the sales person providing a service to the seller or buyer often has to give back a portion of his/her commission to that party. Ridiculous?
As a legal profession, a Real Estate Agent should be treated as would any other legal professional. The problem is that the public at large has a perception of Realtors as negotiators because that’s how we set ourselves up. As a result, they want to negotiate first with us.
Setting ourselves up as negotiators is not our only problem. It should be considered our biggest problem because how can we possibly convince the public of our negotiating skills if we can’t negotiate our own commissions on our own behalf?
The reason we can’t negotiate is that we have not been trained how to negotiate. We all believe we can do it because it’s a natural talent we are all born with. Horse-hockey. It’s an acquired skill like any other that requires training.
And training usually carries a cost. Even if it doesn’t cost money, it costs time, effort, commitment and most of all a little bit of humility to acknowledge that we really don’t know how to negotiate. We must learn it from someone who teaches it… Like ME!
So, maybe after all, it’s not really Real Estate that’s RIDICULOUS. Maybe it’s the people who practice Real Estate, the Sales People and Brokers who will not learn how to change what costs us so much in terms of time, money, and self-image who are truly the RIDICULOUS part of this business!