Mike Loewer

Part One

Fellow Real Estate Agents - Who are we? What do we do? Why do charge what we do for our service?

I found a question from someone on a website which questions our value as an industry and individually. It was actually very bitter and was asked by someone who recently sold their own home and also purchased their next home and received a kick back on the commission using discount brokerage services. There were a few other buyers and sellers posting negative comments on the site along with realtors defending themselves. They feel very strongly that real estate agents are overpaid and are a rip off. At first I was offended and then it forced me to think, “Well, what is the value of our industry and us individually?” The general public doesn’t understand our value and perhaps we don’t either and that’s where the problem begins. We are not completely aware of our own value and therefore we cannot convey it completely.

The public’s perception of us assisting buyers is that we drive people around in our cars, write contracts and collect commissions. Boy, if only it were that easy. The public’s perception of us assisting a seller is that we write a listing agreement and put it into the MLS and you receive 6% for that? Again, boy, if only it were that easy. That is what people on the outside of the real estate business think. Didn’t it look easy to you before you jumped in? We need to be able to convey our value, so here is what I came up with. I know it is lengthy but it made me feel good to fully understand who we really are.

We move the economy:

Let’s start with the sales profession in general. Many times when you exchange products, goods or service for money, your motive and integrity will be questioned. Without sales being made, nothing happens in our economy. All goods and services are sold by people. Goods and services, tangible or intangible do not typically sell themselves.

The real estate industry represents one of our country’s largest financial pieces of the economic pie. Like all salespeople everywhere, we are the back bone of our country’s economy. We put ourselves at risk by operating a business based on straight commission. We front all of the expenses with hopes of a return on the investment. It’s called entrepreneurship and capitalism. Someone might say, “That’s not the point, what do you do and how can you justify what you charge?” Please read on.

Our industry protects the public:

The real estate industry has evolved into its current way of operation over many years for many reasons unknown by the general public and maybe even you. Real Estate Brokers and Agents operate under a code of ethics and we are held accountable by rules and regulations at every level of government. The rules and regulations were created to protect consumers. If everyone sold their homes themselves and or also purchased from FSBO'S (unrepresented owners) themselves, there would be mayhem in the real estate world. Real estate agency was formed by our Government due to the general public not knowing how to properly transact causing legal issues, doing underhanded business practices, ripping people off and getting ripped off. Can you imagine the issues created by five million unrepresented home transactions this year alone? WOW! Someone might say “Okay, I understand the need for agency but still, what do you do and how can you justify what you charge?” Please read on. - Tue Jun 10 2008, 05:21