The Neglected, Over-Looked and Under-Reported Part II

Right now, in Massachusetts, the residential real estate market has a good-head-of steam an some, yes, some sales are being reported

In Massachusetts, in Middlesex Country along ( which has 54 cities and towns) the last 30 days saw 1,589 sales of 1 family's homes with a total sales volume of $670 Million.

This is about 29 sales per community. The county has a population of 1,465,396.

Since there are generally two sides to each sale mean that over 3,178 brokers and agents had a good pay day in this 30 day period. Remember the commission splits 1st 50% /50% between brokerage shops and then the selling agent and listing age, on an average, obtain about 25% each.


But how many brokers and agents in Middlesex County? I've been told that the low number may be 16,200. If this number is correct it means that in this 30 day period 13,022 broker and agents did even have a pay day in the same 30 day period.

Interestingly if one uses the 20% of all agents do 80% of all business that number equals 3,240 of the 16,200.

So 13,022+- agents & brokers made no income yet have individual independent agent EXPENSES and overhead.

Does the general public know what these independent agents pay for out of their pockets and pocketbooks?

Lets list some of their expenses:

National and States Association Dues
MLS Fee's
All auto expenses, gasoline, oil, repairs, insurance etc.
Error's and Omission Insurance premiums
Cell phone expenses
Business Cards
Envelops and Stationary
Postage
Signs
Marketing
Advertising expenses
Business Publication Subscriptions
Web Site or sites.
Name Badges
Internet connections
Desk Fee's
Photocopy expenses
Laptop computer
Educational courses optional
Education courses for specific designation
Continuing Education which is mandatory
Mass Pass Fee's
Business and Agreement forms
Office phone calls,
Parking fee's, etc., etc.
If one is pulling in commission dollars it's not bad, but if a real estate agent goes month after month, 1,2,3,6 to 12 months or more of no commission income the expenses begin to mount and mount.

These independent agents have no health insurance, no unemployment insurance etc.It's sink or swim; it's win or lose and it is a very tough and tedious time to be in the business.

Do we have an over population of real estate agents? Yes, but simultaneously we have an over population of other over population independent agents such as lawyers, accountants, etc.


So where is the media in all this? Who knows! Perhaps it's not just news worthy?
Does the general public care? Does the seller or buying public care? I think not.

And in the end it always comes back to the simple and basic principal of "dog-eat-dog" and the survival of the fittest!


Bill McInerney