California Real Estate Agent Commissions and California’s Economy

real estate agent commissions chart

California’s real estate market has changed dramatically in the past three years, excess inventory, different types of buyers and sellers, changes in lending procedures, tax incentives, foreclosures and on and on… How does all this affect real estate agent income? Simply put, it has shrank. Prices on homes are lower, so are the commissions. Most buyers stay away from luxury properties – your commissions bracket is in accordance with moderately priced housing. It takes longer to approve and loan amount approvals are not generous as they used to be, translation it takes longer to get your commissions check and since the likelihood of approval is lesser so is the chance to get your money.

But there is more. Some traditional real estate brokers have decided to place the burden of high overhead and slow sales on the shoulders of real estate agents. Result – you get even less money out of your already skinny commission check after paying for the soda machine and the conference room you never use.

Low morale and lack of motivation are the results of inadequate income for any professional. In California, where real estate market already has plenty of obstacles realtors could do without, low motivation is a dangerous thing. If you are not active in the current market condition you may end up short-selling your home.

Dynasty Online took all these factors in consideration and has created a new type of real estate commission policy – everyone gets paid 100% from the very first day of the employment. Needless to say our agents didn’t object at all and the only question they had was, “How can I conduct my business without broker’s office?” The answer was, “You get broker’s support online and on the phone”. Most of our agents said, “Well, we are doing this now anyway, so no worries.”

The real issue lies in the quality of broker support to real estate agents and we have organized our support system making it efficient and effective to accommodate all real estate agents needs. Basically, it is a win-win situation where we as a broker reduce overhead and our agents make more money.

After testing the new online and phone support systems, it has become absolutely clear that agents do not have to sacrifice the quality of the realtor support and that they save time and money on trips to the brokers office. Time is an important factor in real estate agent career and we can state with confidence that eliminating need for physical presence at a broker’s office we have increased real estate agents’ productivity.

Today’s market hardly can support traditional real estate brokerage overhead and keep agents paid well, but with us agents always come first.

One Response

  1. Danny
    Danny July 29, 2013 at 1:56 pm |

    People forget that a mekrat consists of buyers and sellers. If they can’t agree on a price, then there’s no sale. Someone will have to offer me double my current home value to even make me consider moving. It’s not the buyers who have all the power.If you’re not selling, and have no interest in selling, then you’re not a participant, since your home is not on the mekrat. That’s fine, as you’re a “buy and hold” homeowner who’s bought a HOUSE, not an investment asset. It’s NOT people like you who’ve screwed up the mekrat, and no one is blaming you. You’re not a “desparate homedebtor”, which is what Keith is talking about.You’re actually someone who bought your home to actually live in it (*gasp!*), and you didn’t assume a ‘toxic’ ARM or I/O loan that is essentially gambling on continued price appreciation in order to make those mortgage payments. That is whom he’s referring to.You know that your home is not also a retirement plan that’ll deliver you to the land of milk and honey in 20 years! Novel concept there, huh?HOWEVER, I’m glad you as a traditional homeowner realizes that any government bail-out of these unqualified buyers will NOT protect YOUR over-inflated equity, as it WON’T. I’m glad you see that government attempts to “save” mekrats are almost guaranteed to back-fire, getting us ALL in a deeper mire, as we ALL pay for it in the form of MORE national debt that is driving our economy into the dumpster!! That costs EVERYONE, and the idea of helping the fiscally irresponsible to stay in a home they NEVER could afford in the first place at the expense of those like you is absolutely stomach-turning to me.The dollar has hit all-time lows, and there’s little doubt that it’s because of unrelentless trade deficits, national debt, with the Feds printing money as fast as possible to keep us afloat. That’s no answer: a price correction is absolutely mandated, and trying to delay it is like pulling a bandage off a scab slowly, prolonging the pain.

    Reply

Leave a Reply