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          The Real Estate Business Gets Nasty

          Chuck Marunde by Chuck Marunde
          February 6, 2009
          Reading Time: 2 mins read
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          Christian Real Estate AgentAs a real estate broker I’m part of a national network of professionals in the real estate business, and I have the privilege of conversing with these professionals about the real estate business, brokerage, the market, sales techniques, and trends.   I learn a lot from these colleagues, all of whom live and work outside my market.

          Here’s a story I’ve heard more than once.   An agent worked for a broker who promised everything under the sun, including a vast educational network, training and mentoring, opportunity for growth and income, office support, tools, supplies, and affiliations that could help the agent build his business.   The agent wasn’t new to the business.   As a matter of fact, the agent had years of precious experience that the broker insisted would be helpful to the brokerage and help them finally get moving in the right direction and get some momentum going.   There were even hints of partnership or management that would involve substantial compensation.   It all sounded so good to the agent that he signed up enthusiastically with the broker.

          Unfortunately, after a year of no office meetings, no “vast educational network,” no helpful affiliations, no marketing systems, no business planning, . . . and virtually no office support with any value, the agent decided he had no choice but to move on.   He realized after pouring his heart out and working long hours to be successful at the brokerage, and after undying loyalty and faithfulness to the broker and the broker’s wife and the entire staff, the broker had in fact misrepresented his services and benefits.

          It turns out this is a common story told in nearly every region of the country.   Real estate agents have a hard time finding a good home, and that’s the rule rather than the exception.   The exception is the agent who has been working with the same broker for a dozen or more years.   That’s rare.

          It’s a tough business. Brokers are trying to make money off every agent, and agent’s are trying to keep as much of their money as they can.   If an agent felt he was getting great value for the substantial portion of the commission he gave his broker out of each transaction, that would be one thing, but many agents are finding out they don’t get all that was promised, and some argue they don’t get anything.

          With the real estate market down so far, and deals few and far between, it has become dog-eat-dog out there.   If you’re a Realtor trying to find a broker who understands how to run a profitable business and take care of his agents with generous compensation and mentoring, don’t give up hope.   They’re out there.   They’re just hard to find.

          Last Updated on February 6, 2009 by Chuck Marunde

          Tags: due diligenceReal Estate Agents
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          Chuck Marunde

          Chuck Marunde

          Chuck grew up in remote Alaska, graduated from the University of Alaska with a degree in Economics and Teacher Certification, and after teaching high school for two years, went to law school at Gonzaga University in Spokane, Washington. He served four years as a Captain and JAG in the USAF at Nellis AFB in Las Vegas. After practicing real estate law for 20 years in Washington, Chuck founded iRealty Virtual Brokers covering Sequim and the beautiful Olympic Peninsula. He is the author of 2,200 real estate articles and a dozen real estate books, and he produced over 100 real estate videos. Chuck combined his love for real estate and technology to create a massive Internet presence, and his articles and videos and books have been viewed by millions. Chuck is a well recognized real estate expert and his counsel is sought by other brokers and practicing attorneys around the country. Buyers from New York to Hawaii and from Florida to Alaska seek him out to retain him as their buyer's agent, and home owners around the State of Washington seek him out because of his new Flat Fee Listing Service. 

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          1. florida waterfront real estate says:
            14 years ago

            Dog eats dog is right! I wake up barking!

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