I'm just wondering why that is. All the real estate offices around me advertise that they are always hiring. I've never seen a period where they are not trying to get new employees. Why is that?
2007-09-14 08:50:24 · 11 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
becuase if you are commission only then they don't lose anything by hiring another broker.
2007-09-14 08:55:23 · answer #1 · answered by Joseph T 4 · 2⤊ 0⤋
Real estate has a high turn-over rate. A brokerage is what I like to call a "revolving door". Everyone is an independent contractor thus an there "at will". Since real estate is a soley commission based type of employment, most new agents won't make it to the next license renewal period. It's not by any means an easy careers. Broker's make a percentage off their agents or they get what is known as an office fee. They need to fill the void somehow. Sometimes you have an office full of agents and none are making money (especially in today's market).
2007-09-14 12:22:07 · answer #2 · answered by #1Realtor® 3 · 1⤊ 0⤋
Because very few people that enter the real estate profession are successful. Next time someone tells you they were an agent, ask them how long they made their living selling homes, then be quiet and listen carefully. On the other hand, an agent that has made 40 transactions a year for 25 years has a lot more to offer you than a casual personal acquaintance that has sold a house or two in their lifetime.
2007-09-15 16:48:48 · answer #3 · answered by divepassion 2 · 0⤊ 0⤋
They aren't hiring, that implies the person is an employee. They are looking to affiliate more independent contractors. As far as the IRS is concerned there is a huge difference.
But to answer your question more directly it's because selling real estate is generally a commission only paying "job" and not many agents are successful at it. It's not as easy as some would make it seem.
2007-09-14 08:57:53 · answer #4 · answered by Sharon 3 · 3⤊ 0⤋
It's very simple. Real estate is one of those professions that is very easy to enter. Besides passing a mutliple choice exam and paying a modest licensing fee,it requires no education or background,and promises unlimited income. The result is that of those who are actually licensed real estate agents,the median income is something like only $10,000. Maybe 10-20% of agents and brokers make a really decent living,like in excess of 50 or $60,000. The result is incredibly high turnover,start out in real estate,if you are typical,3 months later you are out of real estate.
2007-09-15 00:42:42 · answer #5 · answered by Larry V 1 · 0⤊ 0⤋
Most real estate brokers to not pay their agents a salary. Hence the more agents, the greater the odds of increasing sales.
2007-09-14 09:39:43 · answer #6 · answered by Brian T 1 · 2⤊ 0⤋
The more people they have to show and sell property, the better. Agents are paid on commission. They don't have to pay them as employees, only when they make a sale.
2007-09-14 08:58:10 · answer #7 · answered by Cinderelly 3 · 1⤊ 0⤋
They're generally on all commission, so its no skin off of the company's back if there are seats available. Not necessarily good for all of the agents, but the company doesn't care.
2007-09-14 08:56:52 · answer #8 · answered by redwine 6 · 2⤊ 0⤋
The turn over is VERY high, most agents aren't worth anything and fail to perform, they just weed though them.
2007-09-14 13:23:53 · answer #9 · answered by Landlord 7 · 1⤊ 0⤋
always looking for the best broker
2007-09-14 15:20:33 · answer #10 · answered by Bob D 6 · 0⤊ 0⤋