More Realtors, Lenders are leaving the business

More Realtors, Lenders are leaving the business
by Kaushik Sirkar, Chandler AZ REALTOR
Chandler Arizona Real Estate

I'm going to go really, really basic for a second.  Lets say you have 10 apples for sale with 5 salespeople marketing them.  50 people want to buy apples.  Those 10 apples will sell pretty darn quickly and on average each salesperson will earn 2 commissions.

How if you have 50 apples for sale with 25 salespeople marketing them?  And 10 people want to buy apples?  Who knows which ten apples will sell.  Many apple (the fruit, not the company!) salespeople will go without any commissions whatsoever.

Is it readily apparent how this applies to the Real Estate market?  I like to think so....the first example is somewhat akin to the home sales situation in 2004/2005 whereas the second situation is much more representative of current conditions (obviously varying by local market).

Why am I writing about this?  I just read this article in the East Valley Tribune.  It details one agent who has been forced to get another job to pay the bills.  Despite being an agent since 1991 and having a database of over 500 clients, this agent can no longer consider Real Estate her primary source of income.  Not trying to pick on this individual in particular - but is this a shock?  Come on, look at the market....use the apple analogy from above....

Were you an agent earning hundreds of thousands of dollars a few years ago?  Well, I hoped you saved some of that money if you are caught between a rock and a hard place today....

Thanks for Reading :)

Kaushik Sirkar, Chandler AZ REALTOR
Chandler Arizona Real Estate