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Actually, I'm always amazed at how many Real Estate Agents suggest that others should get into it because it is so lucrative. They seem to ignore the fact that
by pedalpete 10y ago
Actually, I'm always amazed at how many Real Estate Agents suggest that others should get into it because it is so lucrative. They seem to ignore the fact that they are welcoming more competition in a finite market.
- brudgers 10y agoIn the US, there's a bit of pyramid to real-estate commissions and a lot of the recruitment is done by brokers. And even at the sales person level, the commission structure of most company's pays better when an agent sells the listing of another agent in the company so the more agents the better the odds of a better commission. But coming from the architecture profession, I don't discount encouraging others as a form of self-validation of one's own career choices.
- pedalpete 10y agoI was strangely missing that piece. I was going to write in my comment that they are similar to pyramid scheme members, but thought that was a stretch. My step-father and brother are both brokers, so I know how they operate, but I somehow missed how agents get a piece of the action.
- brudgers 10y agoThe agent to agent incentives are more akin to profit sharing derived from the increased broker revenue and reduced cost when one broker handles both sides of the transaction. There are also potential informational advantages to having other agents more tightly coupled to an agents social graph, e.g. it is easier to obtain information about seller or buyer motivation and finances through a back channel.