If The Numbers Don't Work Do You Say "No"...This IS A Business!!

By
Managing Real Estate Broker with RE/MAX Executive Realty
http://actvra.in/G9f

As I continue to read posts from agents throughout the country, I can’t but wonder how many of these agents can afford to stay in business.  Many of the costs of working in our industry are universal. 

There are dues and fees that are fairly standard throughout the system; there are advertising costs that are standard; there are the standard expenses of communicating like cell phones and computers.  Yet, I see listings that are under $20,000. 

If an agent is on a split with an office, that commission is sinful.  If an agent has no split, there are still taxes to be paid on that commission and then other expenses to be deducted.  What’s the net?  Is there anything left?

At what point do you decline to take that business?  Does an agent in that marketplace ever refuse business?  If the numbers don’t work, why spin your wheels? 

Is it unethical for an agent to turn down a listing that nets pennies?  Are we encouraged and should we feel obligated to say “yes” to everything and everyone, even if it means spending our own money and making nothing to get to the closing table?  How often can be in the "red?"

This is a business and if we can’t make money, we’re out of business!! 

****************************************** 

About the Author:

Barbara Todaro is an award winning real estate agent with 35 years of experience and is the marketing agent for the Kuney-Todaro Team.The Kuney-Todaro Team is continually recognized every month as a top producing team in New England, since its inception over 10 years ago.

For information about our new construction, visit our website at www.newhomesinfranklinma.com.This site is focused on new homes in Franklin MA.

If you are interested in purchasing a Franklin MA property, visit our buyer’s website at www.barbaratodaro.com.Email or call to make an appointment to view our listings.

If you are considering selling your home in Franklin or one of the surrounding towns, visit our seller’s website at www.frankinmanewhomes.com for a Free Market Analysis of your property.

The Kuney-Todaro Team is the “#1 Team in Franklin’s #1 Office.”Call now to work with the best!!

 

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  1. C. Lloyd McKenzie 08/11/2012 07:02 AM
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Topic:
Real Estate Sales and Marketing
Location:
Massachusetts Norfolk County Franklin Top Listing Real Estate Office Re/max Executive Realty
Groups:
RE/MAX Active Rain Bloggers
Real Estate Rookie
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Tags:
declining a listing

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Ambassador
484,214
Gayle Rich-Boxman Fishhawk Lake Realtor (503)755-2905
"Your Gateway to the Lake"
Vernonia Realty

Barbara~Thank you! Thank you for giving some of us the "it's okay" to say NO. I have a fella who just called again TODAY and has copious amounts of questions about vacant lots and he never ever follows through. It turns out that he lives with his mother--that was the last thing I learned when I left a message for him months ago, which he never returned by the way.

He NOW has interest in a lot that is not my listing, for a piddling 8,900.00. Lots more questions. I am not going to call and go through this again. I was vascillating up til reading this post.

SO, THANK YOU!!!

Congrats on the feature.

August 12, 2012 02:48 PM
Rainmaker
268,362
John DL Arendsen
Real Estate Broker, Mfg Home Dealer, General Contr
TAG Real Estate Sales & Investments & ON THE LEVEL GC

Love it Barbara as usual. Here's a little something to jump start your day. Not that you need much.

 

Never giving up is a life sentence  

 

 

Never giving up is a life sentence for which there is no escape.


for which there is no escape.

August 12, 2012 06:18 PM
Rainmaker
260,368
Wayne B. Pruner
Tigard Oregon Homes for Sale, Realtor, GRI
Oregon First

Not much for that price around here. Maybe a beat-up trailer. If I can't cover my expense,s much less make money,why bother.

August 13, 2012 02:41 PM
Rainmaker
315,664
Karen Feltman
Relocation Specialist
Cedar Rapids/Iowa City, IA Skogman Realty
It is a scary business when agents out there do not calculate what it costs to truly be in business. Sometimes a listing like that can bring more business at a higher value. Often times, it can bring more headaches than what it is worth in the end. Great discussion!
August 13, 2012 10:23 PM
Rainmaker
268,182
Kasey & John Boles - Jon Gosche Real Estate
Boise, Meridian, Ada/Canyon/Gem/Boise Counties
Jon Gosche Real Estate, Boise ID

I'm late on this conversation and haven't read any of the comments but I think you also have to be careful.  I sold a couple of really low ones this year - $37,500 most recently.  That one I might have broken even off after all the time and gas, but it was still worth it.  My husband sold a $50,000 short sale a couple of years ago and now she remarried and they are looking at $500k-$800k houses right now.  You just never know. -Kasey

January 04, 2013 08:50 PM
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Rainmaker
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Barbara Todaro

"New Franklin MA Homes"
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Additional Information

The Kuney-Todaro Team is the "#1 team in Franklin's #1 office." Our expertise is in marketing new construction and resale properties. New construction is our niche and we have sold 40 subdivisions in the area of Franklin MA.