Why Some Real Estate Offices Are Not Interested In Selling Homes

Greg Nino's picture
Greg Nino Real Estate Agent in Houston Texas

It's no secret that if you want to make "a lot of money" in the real estate world you need to find a way to make money off of Realtors. Throughout the HAR (Houston Association of Realtors) system we have a membership of about 28,000. Like in any other industry, the top 10% do most of the business. To the public it can be confusing when it comes to "picking an agent."

We have a lot of brokerages around town who are more interested in "hanging real estate licenses" than they are watching homes be bought and sold. They're simply in the agent business. These brokerages charge a small fee each month for each Realtor to have their license with a broker. Seeing how most of your agents are low producers or part-time agents, the production (# of units sold) is going to be very, very low... like on life support status.

Imagine owning a real estate office with 500 agents where each of them pay you $100 per month. That gross income will alone net you $600,000 per year. Now add a $75 transaction fee for each of these agents. It's conceivable that the owner could bring in a sizable amount of income for mostly "at home agents" who do little if no real estate production. I'd rather make far less and sleep better at night!

Many of these offices (not all) run on a skeleton crew with an owner/broker who is mostly checked out - out of pocket and quite honestly... not very involved with the overall training, supervision or day to day operations.

Anytime I receive an offer I do my due diligence not only on the offer, but on the agent. The latter is more for my personal knowledge than it is my clients.

Keller Williams is a great example of a large company that is actually quite the opposite of these types of problems, so is RE/MAX, Coldwell Banker, Prudential Gary Greene, C21 and most of your larger brands. To be honest, I would rather work with a small company (less than 10 agents) than with a no name company that had hundreds of agents wondering aimlessly in the real estate space like a chicken with its head cut off.

Greg Nino, Houston, Texas
Real Estate Agent / Houston, TX
RE/MAX Compass, formerly RE/MAX WHP - RE/MAX International Inc.
Mobile (832) 298-8555

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