I've gotten to the point in my career that there is no way I am picking up a buyer (unless they cannot drive because of a health issues). Picking up a buyer is a disaster in terms of time management.eonibm wrote: ↑As for your non-refundable retainer it's an interesting idea as I imagine there are people who are into real-estate porn and engage agents simply because they want to be shown houses, and sometimes be picked up and driven to them and then dropped off at home again. It's unfair to waste an agent's time like that if you have no intention of buying a home at all no matter what. Of course, the majority of agents won't ask for a non-refundable + cash-back retainer so, as you say, it won't work in real life because of that competition.
I am curious, cost of 'time' aside, what would you estimate the costs, ie professional photos, floorplans, board fees as you mentioned, are for a typical listing? - costs which you have to eat of course if the property does not sell.
Professional photos & floor plans = $200
Board MLS® Upload Fee = $50
My time = variable depending on listing/client.
The problem is all the fixed expenses and intangibles. Monthly brokerage desk fee ($150), monthly board fee ($120), brokerage transaction fee ($250).....then the intangibles (stolen signs, gas, strata documents, etc.)
Last year I grossed a lot of money but $155,000 cash back to my buyers plus $83,000 in expenses did bring the gross down substantially. This year I'll be closer to $200,000 cash back and $100,000 in expenses (somehow things just add up).
At the end of the day I am not complaining. I am 28 years old and I own three cash positive rental condos and I am in the middle of building a custom 4,500 sq/ft house. There is a lot of money to be made in real estate if you are willing to think outside of the box and hustle. I don't think there has been a week since the New Year that I've worked less than 70 hours. It isn't hard work (driving around, showing houses, meeting inspectors), but if you like to go camping or away once a month it doesn't work too well when you have the amount of buyers and listings I do. I take a 30 day vacation every second year in August, the rest of the time it’s literally 7 days a week and at least 10 hours a day. I am hoping by 35 I can step back and try to somehow take Sundays off. As I type this on a Sunday I am waiting for clients to get to my office to write up an offer.