Most of us who have watched the movie, “American Beauty” are acquainted with the uber-competitive housing market and the real estate agent earnings that accrue from successful sales. In normal times, real estate agents have to strive hard to make money that would cover their operating expenses. And given the fact that the housing market in the US is in a slump right now, the people who are into the realtor career have a lot of work to do.
The real estate agent earnings typically are a few percentage points of the entire sale proceeds. And the saying about “earning one’s bread” applies to this segment as the real estate agents have to push the pedal really hard. And the movie which portrays the struggles of the female protagonist in ways that most realtors can relate to is indeed a good example of how hard the life of a realtor is.
Effect of Recession on Real Estate Agent Earnings
The tanking housing market and the general downturn in the economy has meant that there are fewer buyers for housing units and despite several tax incentives for the potential buyers, there are few takers for the millions of housing units that are being added to the inventory unsold. This makes the work of realtors that much more difficult and forces them to innovate and come up with newer ways of doing business.
Real estate agent earnings have taken such a huge hit that many people who have thought of making a realtor career are now having second thoughts. This shows the extent to which the slow moving inventory and depressed demand have reduced a hitherto booming career to one that is shunned by many.
Ways to Make the Most of the Current Market
Of course, all is not lost. For those who are into the realtor careers, there are some tips that can make their life easier. For starters, realtors can guide the sellers and buyers into pricing mechanisms that are easier on the buyer as well as profitable to the seller. Further, the realtors can entice buyers with the several governmental subsidies and tax cuts that are being offered to home buyers. Lastly, the realtors can encourage buyers to pick up the properties that have been foreclosed and hence can be bought cheap.
Considering that real estate agent earnings are a function of the volatility in the housing market, the tips suggested above can improve the bottom line real estate agent earnings of the realtors and serve as an inducement for more people to take up a realtor career as an employment option.
As the saying goes, “There is a silver lining to every cloud”. Hence, by being optimistic and seeing the glass half-full, realtors can make the most of the busted housing market and ensure that their incomes are at least half of what they were earlier. In every crisis lies an opportunity and the realtors should not let the opportunities that are available go waste.
Finally, the real estate market is fickle and one never knows when it surges and picks up steam. Hence, being prepared for the upturn might be a good thing for the realtors who can then see their earnings from real estate deals shoot up.