Jose Rivas

I keep hearing some depressing stats in our industry. I am a big believer in the 80/20 rule, and I know that principle also applies to our business 20% of the agents make 80% of the sales. I also remember to hear that the turnover rate in real estate is 75% in two years.

Last week I was told that in this current market only 10% of the agents are making 90% of the transactions and that 40% of the agents in my area have only close ONE transaction in the last 12 months.

I was doing the numbers the average sales price is $200,000 and the average commission is 2.5% so the one sale a year only brings $5,000. most of the agents in my area are associated with traditional broker splits of 50/50 to 60/40 I will take the later. So that means that 40% of the agents in my area have only earn $3,000 in 12 months. I know the local board is $580, MRIS is $660, license $90, business cards $100, sentri card $175. Total investment is $1605. That leaves a profit of $1,395. divide that by 12 months and that is a $116 monthly income.

Well the problem with new agents and most agents in general is that they have the employee mentality. They think that they work for the broker or company and they usually call their broker or manager their boss. They expect the BOSS to give them the business, they usually do floor duty and become unpaid receptionist for the company waiting for leads. Then they will go out on a limb to show houses to the people who call without verifying finances or buyer's ability to purchase a home.

Some go to many trainings or classes to become better agents, and try all kinds of things to see what sticks and works for them. Also they do the open houses for the office top producers, etc.

So after several months of frustration the agents that feel they are wasting time, and sure they are, go out and look for hourly paying job, and become "dual career" agents. Usually they don't do a good service to their leads or clients and ended up losing business because they are part timers. And after a few years they will drop out of the business.

I understand that there has to be a level of apprenticeship, and mentorship, but also most important it has to be a business plan. When you open a new business and you have to go to a bank to get financing, or to leas a pod, you need to have a business plan. To be able to grow your business you need to know where you are going and you need a business plan to guide you.

I know most new agents don't know what that is, and most brokers don't spend time with their agents helping them develop a successful business plan and set goals. The only way you can be successful is to set goals and know how to achieve them. We can't drive without a map or destination.

In my opinion new agents fail because they don't have ownership of their business. They don't have goals, plans, they have the employee mentality.

I was at a local board of realtor's event last week, I get the opportunity to meet a lot of people and learn some new things about our business and how the other agents in my area are doing.

I am the president of the Society of Hispanic Real Estate Professionals and our group was making margaritas and for the attendees as a pre-cocktail hour. There is a really good young agent in my group, this agent is new to the business but in my opinion has the potential to be a power agent in the future, this agent has all the tools, great personality, ethics, and most of all cares about the business.

I hapen to meet someone from the office where this agent works maybe the office manager or associate broker, and he was talking to someone from the board of realtors that was standing next to me about this agent. This is what I heard " We are keeping this agent busy transalting for us"

I took ofense to that, in my opinion all real estate agents are our own business owners and we are not employees of the company nor the broker, in my office the only employees are my salary assistants and my office manager. And to make things worst instead of trying to guide this new agent to grow as a real estate agent, for that company the Hispanic agent is just a translator for the current big agents.

Later I spoke with my friend from the local board about the conversation and she was in agreement with me, she told me that some older agents haven't change with the times and they are still narrow minded. I felt really bad for the new agent, because as a new agent in our business this agent has a lot of excitment and energy, and it is a shame that some brokerage is not able to guide new agents and help them grow as real estate professionals, but rather just use then as auxilary un-paid staff.

Since I move to Baltimore from Miami, I never thought I would be getting ready hurricanes, but in 2003 we have Isabel, and now we might experience Irene.

I know everybody in Baltimore knows how to get ready for snow, buying milk, tp, clorox, etc. Well in case you forgot what happen in 2003 here is a list of things that you should buy in case Irene comes our way. Please stay safe and remember if the EYE of the hurricane is going over you, that section is very calm and appears that the worst is over, stay put and wait, because the tail of is still coming and sometimes that has the strongest winds.

1. flash lights and batteries.

2. candles, oil lamps and a lighter or matches.

3. propaine gas or charcoil to cook for up to a week if the power is off and you only have electric stove.

4. water jugs or bottles. sometimes it is not safe to dring tap water.

5. can good and non perishable food, if you have kids it is a good idea to buy powder milk or evaporated milk. Also don't forget a manual can opener in case you only have an electric one.

6. Gasoline, fill your tank up tomorrow or Saturday morning, if power goes down then gas stations wont be able to sell gas.

7. first aid kid handy.

8. Keep your home insurance policy handy and their phone number, also keep a digital camera and if you can take pictures before and if you have to after.

9. keep materials and sentimental values away, bring down the pictures and pack them like if you are moving.

10. If you are on a flooding zone, make arrangements and go to higher ground.

11. keep a battery operated radio or tv.

12. Ladies if you are expecting, talk to your doctor the preasure from the hurricane might induce labor.

13. board the windows, but if you can't or don't want to do it, get packing tape and tape the windows, if the hurricane bust a window or door, break another one to let the preasure out.

14. Find the safest area in your home. away from windows, usually bathroom and walking closets are good.

15, Clean out the gutters in your house and side walk, along with storm drains.

16. move patio furniture inside or tight it and secure it.

17. GET CASH, if power goes out there wont be any ATMs of banks open.

19.Make sure your sump pump works

20. Go to the store today, don't procrastrinate, avoid lines and empty shelves.

Best of luck and please stay safe

Well first let me say that I don't work for Baltimore or Maryland government, and this is not a goverment sponsor camapaign to get more people to move to Baltimore.

This morning I stumble upon an article from the Washington Post online by Frances Stead Seller, , where she compares the CHARM of Baltimore lifestyle to DC own lifestyle. It is a great article, I think both cities are great, but they are not for everybody, some of us like to have the mix of big city and small town, and Baltimore is just that, here it is easy to play 6 degrees of separation with everybody who live here. When I meet new people we always findout that we have a friend or acquiatance in common.

Baltimore is just minutes drive to the country side, if you want to get away and recharge, there are vinyards with great wine, farms where kids can have fun in, the state fair is great with rides and shows for everybody. I love sports so you can watch good football and baseball in a great ball park.

I was not born in Baltimore, and I have only been here 11 years, but this is my home now, I like the layback lifestyle, the 20 minute commute to anywhere I want to go, the friendly people around, the close proximity to other major cities, to the country side, the beach, the lakes and rivers.

Yes I have to admit it is not a perfect world, there are some issues, but every city has its owne sets of issues. If you want to read the entire article from Washington Post click here

If you are relocating to Baltimore or planning to purchas a home in the Baltimore area, contact me, and I will help you find your new home and make your home buying experience simple.

410-256-1717 reobaltimore@gmail.com www.centralrealtyhome.com

I just read an article on DSNEWS about the low interest rates from Freddie Mac, it seems that both fixed and ARM are at all time lows, or at least the lowest in 50 years, per article.

I guess that is good, hopefully the banks decide to lend and some good buyers can take advantage of the low rates, but what made my read the article twice is the following quote from some executive at Freddie Mac "both fixed- and adjustable-rate mortgages have reached all-time record lows, providing further incentive for homeowners looking to refinance."

Now how many home owners have enough equity to refinance to this low rates. Now between rates, inventory, prices and the amount of agents and loan offiers, left in the business, getting lower and lower everyday, this housing market is starting to sound like a Ludakris song, I can hear the chipmunks singing the hook.