We all know real estate agents live in their cars. So when the cost of operating a vehicle doubles and we are in a slow market, how does a real estate agent cope?
My guess would be most real estate agents will try to cut down on extra driving and combining trips. But it also may be a worry that does not have too much bearing on the situation for a busy agent. An extra 100 dollars a week in gas is not going to hurt a top producer.
But for the agent that is doing a marginal business could the gas prices be the final straw?
Tell me how the price of gas is affecting your business.
Some real estate agents are coping with $4-a-gallon gas by changing their driving routines and scrutinizing prospective clients to make sure they’re serious about buying or selling.
The strategies help control costs for agents who spend a lot of time behind the wheel but don’t get reimbursed for mileage because they are sole proprietors or work as independent contractors. via The Business Review
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{ 5 comments… read them below or add one }
Yes we are all a little more aware of the miles we are driving and we try a little harder to combine tasks so we can drive just a bit less but other than that it is business as usualy
Gas prices are another reason why real estate agents had better start looking at other ways to conduct business.
We have developed a system where the seller does most of the showings and most of the document preparation/storage is done on line (trustfax.com).
Go to http://www.FlatFeeDirect.com to check out our system. However, This is way too scary for most real estate agents because they fear becoming obsolete.
A lot of potentially good agents are being forced out of the business because they lack the ability to "think out of the box". In fairness to them though, The NAR and others have been spreading fear about alternative businss models for the last twenty years. Most agents have bought into it….
Nice little link spam there from TW…
But seriously, I am not altering my work driving, but we are doing less "other" driving and combining trips and such. Still haven't been able to talk the wife into the motorcycle.
No "span" Lane. Just trying to point out a new way of doing business. I have nothing to sell except my listings in my market area.
I've advocated new real estate business models for many years now. The way the current real estate industry functions is like that row of duck I saw at the park the other day..one following the other.
The real estate industry is under attack by consumers, the US Justice Department (AntiTrust) , the Federal Trade Commission and consumer protection organizations. This hasn't happened since the 1980's (that's another history lesson for later). This should be a wake-up call to people that are serious about a long-term career in the business.
Most of the people in the business will have chosen a new career within five years..I'm pretty sure we all know that.
I raised a family of five children (all grown now)solely with income from being a professional real estate agent. I'm grateful for that but I'm also grateful that I had the foresight to "change with the times". The real estate business has afforded me a comfortable life style (I'm 60 now)that I probably could not have achieved otherwise, however, that didn't happen by "following the other ducks"
Here is a link to an article that I did some years ago about this subject. I realize many real estate agents don’t agree, however, time will tell. At least it's something to think about..
http://searchwarp.com/swa16109.htm
Have a great day!
TW
Gas prices seems to be a hot item on the agenda today. I am in the process of purchasing a new vehichle and thinking of trading in SUV for car but wonder if one might be able to secure a better deal with another SUV. Recently auto dealers such as GM have started offering outstanding incentives on trucks and SUVs to move inventory such as a recent 0% for 72 months promotion.
With these types of deals it almost makes sense to forego the trade in for a car and jump back on the SUV wagon. Besides agents also are able to write there gas off. More gas expense equals more tax write off, if you're in a high income bracket, this might assist in bringing you down to another level…