PART ONE
In the past many months we've seen over-whelming media reporting, articles, and even editorials on the real estate business and industry.
We have read endless items about the "recent housing bust," and the decline in real estate prices and sales volume.
But one sector of the real estate world has been grossly media "neglected, over-looked and under reported.
How can media not report on about the economic conditions and financial hardships of about 2 million US citizens? And this may well prove to be a very conservative number.
I'm writing about the vast army of real estate agents who are working, sometimes 7 days a weel under some rather stressful conditions.
Just where is media?
This vast number of our fellow citizens now work under some rather extraordinarily difficult economic and financial conditions.
Real estate agents are not paid until a deal successfully closes. No closing no income.
In the past several years, at the height of the real estate housing boom many well-intentioned individuals left good paying employment to find
their fortune selling real estate.
Many were enticed to enter the "business" by extravagant claims made on late night TV infomercials. Now modern mass media doesn't even acknowlege them!
These individuals took the mandatory pre-license state courses, passed the state exam and in no time they were off and running. Many joined one of the numerous large franchise real estate brokerage firms across the nation.
In one report published in May 26, 2007, 1 in 52 adults in the State of California were either a licensed real estate agent or broker. That state alone 387077 licensed real estate sales people and 145,244 held a real estate brokers license.
Some did very well while others did not. Some sold real estate to their relative and friends and built what seemed like a promising career. Other never made a single sale.
The,almost over-night, the "boom ended." The sales of one family homes, residential condos and small multi families dropped precipitously across the county.
Today there is just not enough real estate business for all of the agents.And real estate sales are not equally distributed!
Real estate sales agents, licensed by the state, are classified as " independent contractors!"
Today, and in my opinion, about 15% to 20% of all real estate agents are marking some good to fair commission income while the other 80% are not.
Many are not making any commission income what so ever and because they are "independent contractors" they are ineligible for unemployment insurance.
What makes matters worse of course is the ever rising rate of total "unemployment" across the nation. Many self employed, non-income producing real estate agents can't even find part-time work to tide them over.
I don't know if the general public is aware, or even cares, about the "plight" of many real estate agents today.
Many agent are married and have children,some have spouses who have recently lost their jobs.
Of course the every present hard-liners will shout, " This is the system. This is the way it has worked for over 100 years. It's a free country and no one made these individuals become real estate agents." \
And they are correct. But are they right is my question.
Part Two soon
Bill McInerney
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