I had the pleasure of serving as a panel member for a special session of Our Future Summit, a group that brings people together to discuss what directions we should be going in Summit County. The session focused on the real estate industry, and took a look at employment in our industry, as well as what is happening with property values. Key questions centered on what it takes to live here, both for local workers and for second home owners. With the lead, I was asked why we had so many Realtors in the County - and by the way, just how many are there? Well, we have 662 current members of our Association. However, contrary to popular belief, not all of them are wealthy. In fact, very few can actually say that. Of our total membership, half will do one or zero transactions in the next year. This has been a constant for several years. Since Summit County produces in the neighborhood of 3,000 transactions a year, that is less than five per member. And since the 80/20 rule applies, 80% of those transactions are done by 20% or less of our membership, it means that most are doing well below the average. So, most cannot actually make a living in this business, particularly when commissions are split several ways following closing. People wonder why our commissions are so high, but Realtors are always expected to take all the risk for any given sale or purchase. Buyers and sellers are not expected to pay anything up front. We pay all hard costs, as well, from advertising to gas to the myriad of equipment, offices and other promotions that it takes to stay in this business and to attrack clients. As with attorneys who take contingency cases, if you take the risk, you should be entitlted to a greater reward with success. Because you do not get paid on deals that do not close. Statistics show that, for every transaction we bring to close, we have worked on 6. That means six people for whom we have advertised their properties or driven them to listings, sheltered them, bought numerous lunches. And often, they do not result in a deal because the buyer or seller changes their mind. With no charges, of course. So, spread our commissions earned on each deal over six of them, and you may agree that our compensation is much less than thought. In fact, the myriad of people who get into this business expecting overnight success are the first to recognize just how difficult it is. Our annual attrition rate is between 25 and 30 percent. Great business. I don't bemoan it. I have always believed it takes a full time commitment to become successful in any business, and we have done that for 15 years. Yet, we are not wealthy. We have a nice office and dedicated, trained, professioal agents working for us. And we are recognized by our peers from coast to coast. Our reputation is intact. And we earn our commission - and welcome your business. __________________________________________ Want to buy or sell a SnowHome in Summit County? Please visit our website. All the property listings are there. When you live or visit here, you will know "Snow Place Like Home". |
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