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Re: Retaining wall fees - Real Estate

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A real estate agent gets ~6% of the price of the whole property for selling
it, whilst the total design fee for a new home is maybe 10% of the
_construction_cost_ (not the land cost). That 10% is the total for the
architect, engineer, surveyor, etc. Basically the real estate agent is
getting paid more for selling the property than the entire design team gets
for creating it in the first place. Can this be right?

Michael



                                                                           
             "Paul Crocker"                                                
             <pcrocker@reidmid                                             
             d.com>                                                     To 
                                       <seaint(--nospam--at)seaint.org>,                
             06/01/2004 11:24          <h.d.richardson(--nospam--at)shaw.ca>            
             AM                                                         cc 
                                                                           
                                                                   Subject 
             Please respond to         Re: Retaining wall fees - Real      
             <seaint(--nospam--at)seaint.or         Estate                              
                    g>                                                     
                                                                           
                                                                           
                                                                           
                                                                           
                                                                           




"If you really think real estate salesmen make that much money
you should try being one!  But first do some research; divide the total
real estate commissions by the total number of real estate salesmen (a
friend of mine actually did this) and you'll be surprised at how low
their average income actually is and you will understand why there is
such a high turn over in sales personnel."

As you hint at when mentioning high turn over, the number you arrive at
when dividing fees by the number of real estate agents is skewed by the
large number of amateurs and dabblers who enter the field half-heartedly
looking for easy riches.  Many of these drop out in a year or less when
they hit a dry spell in sales, or discover they don't want to sacrifice all
their evenings, weekend, and holidays driving people around looking at
houses.  Add to this the number of people who try to do it part time (not
usually a great strategy), and you get a theoretically large pool masking a
number of dedicated full-timers that is a small fraction of the total.  The
dedicated full-timers can do very well, and take little or no liability for
their efforts.  It is a feast or famine profession.  Perhaps it is a little
reminiscent of acting in that respect.  Even for the successful, though,
remember that the percentage taken as fees is generally split between the
buyer's agent and the seller's agent, and a chunk of the fees they collects
are generally taken by their office, so they don't see the whole figure.
You might look at it as a poorly structured profession that makes up for
its definciencies by highly rewarding those persevere.  One of the arguably
smartest engineers I have know left engineering for a few years to be a
real estate agent.  Being a smart and social guy, he did pretty well, but
ultimately found the driving people around who may or may not actually buy
anything and shuffling papers around didn't excite him, and he returned to
engineering.  Ultimately you have to enjoy what you do.

Paul Crocker, PE, SE



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