Real estate agent costs rise as income dwindles

Individual real estate agents and real estate companies are finding themselves caught between a rock and a hard place as they attempt to do their jobs in the current market.

With the average days a home is on the market increasing, agents are finding themselves spending more and more of their own money promoting and marketing these homes with no sale date in site. This problem is compounded by the rising foreclosure and short sales or when a home is incorrectly priced and the seller refuses to adjust or the agent fails to regularly update the seller of the changes in the market as it relates to the seller’s home.

The cost of materials and time to prepare multi-colored flyers and promotional pieces, the cost to send out marketing pieces through bulk and first class mail, the cost to maintain a staff of assistants and receptionists to handle incoming sales calls and inquiries, the cost of gas prices to drive potential customers to the property, the cost to maintain equipment to keep up with the increase of activity, the cost of for sale signs and sign riders, the cost of print advertisement to promote the agent or office listings and the cost of maintaining an internet presence to promote the listings continues on regardless of the dwindling sales.

These ongoing costs coupled with very little profit will continue to force agents and real estate companies out of business as time goes on. Those agents and companies that survive will do so by making the adjustments needed now and refining their business model to adapt to the current conditions.

Reducing business overhead that does not directly affect the customer, reducing or eliminating ineffective marketing and striving to continually educate the seller on proper pricing and price enhancements are the steps being taken now by those agents and companies who will remain strong regardless of the market.


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- Greg Staker - Watson Realty Corp. - 407-304-0255

Show your home 24/7

Show your home 24/7 with a virtual tour

If we have learned one thing this year, it is that the days of placing a sign in the yard and stepping out of the way of the stampede of buyers has ended, for now. Old and not so old marketing tools have been brought back out of real estate agents marketing closets, dusted off and placed back into use.

One of these not so old tools are the virtual tours. With over 10 months of listing inventory in Central Florida for prospective buyers to choose from, now more than ever is the time to promote your home 24/7. Listing your home with a real estate company and agent with no web presence would be unthinkable in today's real estate age. Sellers should strongly consider allowing their agents to also have professional videos taken of their property so that potential customers can view the home at anytime, day or night.

Giving your home this extra edge against it's competition, may be the difference in price realized and time on the market.

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- Greg Staker Watson Realty Corp. 407-304-0255

December open houses

Our office held an office wide open house weekend this month. There were approximately 36 homes held open on Saturday/Sunday. The exposure that the ad alone brought to Watson Realty sellers was more than so many other companies can provide in a month of their marketing. Several good contacts made and 1 sale that I am aware of resulted from this event. Watson Realty knows how to succeed in any market environment.

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- Greg Staker Watson Realty Corp. 407-304-0255