How High Will It Go?

Kristal,  Interesting, I was just thinking along this same line today.  I can't wait for the day when alternate choices will give back to the oil sources beyond the oil companies what they are giving to us!  There is no reason behind this price increase!

Just looking at your picture $3.09 is cheap!  Here it's $3.49 cost me $75 just to fill up.  I may need to increase my fees just to cover my added expense.

Shawn martin

Martin Home Inspection Services

www.martininspect.com

Hi Kristal,

It's $3.59 a gallon in Crescent City!  Hi high can it go?

Fran

The news agencies predict $4.00 + a gallon this summer.  With the unrest in the Middle East and Nigeria, the oil markets are nervous. Some of the South American oil producers are also unstable. 

Like any business we will have to figure out how to reduce our costs to keep our margins.  Better route planning, more phone and internet communications to qualify prior to meeting and driving.  But it is hard to reduce touring unless you car pool.  Some of the brokers opens are starting to give a few bucks for gas especially in the outlying areas.

Kristal,  I have been thinking along the lines of a (pre-showing) retainer fee to cover my fuel expenses.  My other thought was a "fuel surcharge" per transaction.  Sounds kind of corny, but other industries are doing it. 

Kristal - Fuel is getting to be a big part of our expenses these days.  I actually heard that some people are asking clients to drive them around!  Don't think I'm quite ready for that yet...maybe when it hits $4 a gallon I'll have to revisit that one!

Hi Kristal,

I know, how high will it go? These gas prices are ridiculous. In my area gas is $3.69 a gallon and climbing. I too wonder what will become of us. I mean, I don't work like agents where its strict commission, but my salary doesn't seem to be increasing just like everything else. And I travel over 50 miles a day to work. My Escrow Fees have been the same for 5 years. And if anything, I have people wanting lower escrow fees? Everyone else seems to be raising their prices. The US Post office just increased the postage to .41 Cents, Messenger Services have increased their fees too. So I wonder, shouldn't I be increasing my rates and not lowering them? Its typical in my field to be picked on with fees. But I don't see anyone else lowering their prices. So I'm with you, what will happen to me? I have to make a living too. I'm just hoping that a raise take place. :P

$3.09 a gallon? In my area gas is at $3.59 for regular. Someone help us. These prices hurt.  A Fuel charge per transaction is a good idea.

Well....in the UK it's been about triple that for as long as I can remember - in spite of North Sea Oil.  I think that government and taxes have something to do with it!

$2.89 a gallon in Brunswick Georgia - I am so glad I bought that H3 instead of the H2 (gettig about 18-20 miles to the gallon).

Think of ways to save some gas - if you sit at open houses and the buyers come to you, hopefully you will not have to drive them anywhere if you bring your computer and write your contract at your open house. 

Also, spend a lot of time with your buyers previewing homes through virtual tours so they can eliminate some of the homes by these tours. We have such at great site at http://www.therealestateshow.tv.

If you listen very carefully to your Buyers, you won't have to show them as many homes.  The last buyer sent to me on referral only looked at two houses (wrote contract on second one) because I took the time to go through and show him why I was excluding properties because they were not in his parameters - he stopped me on the second house and said he wanted to write a contract...........................

I hope that we will find an alternative to oil.  I can not believe that the existing technologies wouldn't get us there if applied.

Kristal you should see the havoc it is causing the school budgets with all the buses and gas they use!

I agree - it really adds up fast. A tank full is painful now....and I am a road warrior by nature. 

It's $3.19 here in Madison WI. Prices are expected to go over $4.00 by the end of the summer.

I feel your pain, BUT (you saw that coming... didn't ya), I have been on sabbatical in the UK now for almost 2 years and when you do the math, the price of a gallon of gas over here is nearly $7.00 a gallon! Of course, the vast majority of that cost is taxes.

kk: Gas prices are a complicated issue. According to the libertarian think tank, Cato Institute, even at $3/gallon, we are currently paying less per gallon as a percentage of income than in 1955 when gas was about 29 cent per gallon. They claim: “If we adjust gasoline prices not only for inflation but also changes in disposable per capita income (defined as income minus taxes), gasoline today would have to cost $5.17 per gallon to have the same impact as 29 cents in 1955.”

Cato has an agenda that I don’t always agree with, but in this case, I do, as I have read other reports that support their figures.  Bottom line—chances are in the not-too-distant future we’ll fondly remember $3/gal gas as “cheap.”

It's pretty bad.  We're back up to $2.99 a gallon for regular. 

$60,00 to fill my tank now. 

How many miles do I get per gallon.

I drive a Sequoia.  I don't get miles.  I get blocks.

This is one reason that I make a point of filling my gas AFTER clients are in the car.  Then they can get a glimpse of how expensive it is in real estate, before I've made one penny back. 

Personally, I think that if the news media would quit predicting the cost of gas, it would quit moving up so quickly-anyone else notice that the minute they predict, say, $3,00 per gallon, it jumps there overnight?  And record profits for the petro companies...

Some of the comments herein remind me of my days in the US Army when my tanker friends used to refer to how many gallons to the mile!

Guess we in Virginia are fortunate since our prices are not as high as those shown on the blog.

Driving those gas guzzlers is your option; downsize if you are serious about the cost of gas!  I am very satisfied with my Honda Odysey; room for father, mother, and three children with comfort.  Did it yesterday and the day before.  Incidentally, they wrote a contract yesterday!

In our area housing prices have increased while the gas prices have climbed.  Ergo, my pay has increased as well.  Do not see a need to charge additional fees (in addition to my commission) yet.

The cost of doing business in real estate sales always increases as years go on; at least they have since I began in 1989.

If you are concerned with the cost of gas, take a look at what the rest of the world is paying.

Given all that . . . bear in mind that the petroleum friends of the current administration continue to get "grow" their business.  Is this gas shortage contrived?  Now on to a blog of my own.  Guess what the subject will be!

Kristal, one thing I do is make my Buyer Agents charge a Buyer Agent fee. It is 195.00 and is on their closing statement. It is for this very thing. Lunches, gas and the basics of doing business. I do not take a split of it.

Before someone says something it is common practice in my area, some agents charge 295.00 even to their sellers and some charge 95.00. Some charge nothing............their choice.

I like Leigh's comment about filling up when they are in the car.

The high gas prices hurt our home sales in the out of area area's, because I have seen buyers add it up and decided to stay closer in town. All those back to school trips to bring the forgotten lunch or home-work add up.

Kristal, In the Daytona Area, it ranges from 2.88 to 3.09 depending on the TOWN. My town of Ormond has been sitting at 2.88 for about a month now, but I've been watching prices near my office in Daytona creep up to 3.09 and I too have been wondering how you folks afford the gas, if I am paying 40.00 a week just to go back and forth to the office not driving around showing property. I guess we're lucky from the comments you've recieved, I can't imaging 3.59 or 7.00 a gallon. Is it time to go back to the horse and buggy?

I almost forgot, the original reason I stopped by was to say Happy Mothers Day Kristal!

Kristal-our gas here is 3.35-3.75 a gallon.  I've been more conscious of my driving.  Gas is costing me about $140 or more a week. I drive a Sequoia like Lenn and I am going to start to fill-up after my clients are in the car.

I just wish they would re-program the pumps so they don't cut off at the $50.00 mark when I use a credit card.

I was thinking the same thing yesterday. It does make me wonder if we won't have to rethink the way we do our business. And it is effecting my business, people are thinking about how far out away from work people want to live. I keep thinking about your 'go-burb' idea, it's very practical.
http://activerain.com/blogsview/21240/Attention-Seattle-May-I

It is atrocious what they are charging for gas these days.  A lot of it is taxes, as well.

As unfortunate as the gouging at the pump is, at least it's starting to get folks thinking about alternatives.  Think back 5 years or so.... How many electric or hybrid cars were available?  And now how many do you see?

If you still need a big truck, but want better mpg, switch to a model that uses diesel instead of gas.  You'll get a lot more bang for your buck!

 Hopefully we'll see somethings change for the better in '08.

We must put this into perspective.  I am thankful there is gas.  Back in the 70's showing homes was often a challenge when you had to get into a gas line to fill up your tank.  I remember that if your license ended in an even number or a certain letter, you could gas on M-W-F.   It was an adventure.

And yes, I am that old.

Linda, Aren't we aging ourselves by talking about the rationing of the 70's.  Sadly, I remember those days as well.  About the same time they had a freeze on wages, as I recall.

I paid $2.86/gallon yesterday when I filled up at BJ's, similar to Costco or Sam's.  I like the ideas of filling up with the buyers in the car or charging an upfront fee for just this thing.   The last couple of buyers I've had out put gas in my car for me while we were out showing.  That was a very nice treat indeed!

Ann

Hi Kristal,

I'm going to put a taxi cab medallion in my car so when a buyer makes me drive them to 20 properties I can get the fare just in case they do not buy.

I think as agents we will have to rethink how we conduct business.  I know of agents who charge buyers a $500 retainer fee.  If the sales happens this is applied; if not the money in non-refundable and covers the expenses involved in house hunting.

MY threshold is $4.00 a gallon. Currently the cheapest gas here in Austin is $2.79 a gallon. When it hits $4.00 I stop going into the office and start transacting all business from my home and yes..I will start doing retainer fees to cover expenses.

OK..It's janeAnne...weighing in here...and I bet y'all know what I'm going to say...USE electric cars...simple solution...here's a link to lead y'all to lots of interesting alternatives...and/or try a horse...that would be MY choice .....slow and easy...

Kristal-

Interesting post. I was having many of the same thoughts the other day as I paid $3.39 for premium gas. (My car requires 91 grade) Like you, my work is dependent on customer service which requires face to face interaction. I am not sure what to believe regarding how the price of fuel is determined. I am hopeful that the increased focus on Ethanol, which is made from corn will lead to a viable alternative energy source. The fact that it supports our agricultural industry as well as providing a more affordable and renewable energy source is all good news. Let's keep supporting those that make the efforts to make alternative energy a reality for us and for our children.

it is a truth that must be faced. I cant fathom hitting $4 ! ouch! I too drive a Sequois like Lenn ...Guess I'll have it for a while-  How can you trade a SUV at a time like this.