Which is greater?

97% of $2500 minus 43% of gross in expenses

Or

60% of $2500

This seems pretty easy. Yet there are over 500 people in Genesee County that get this wrong everyday. It reminds me of when I was 7 years old and my dad asked me whether I would rather have $1,000 or a penny doubled everyday for a month. At 7 I wanted the $1,000. By the time I was 9, I figured it out, the doubled penny turned into $10.737,418.24.

The answer to the above question is [2500(.97)]-[2500(.43)]= $1,350

Or 2500(.60)= $1500

Then what would happen if under the 60% formula you actually did this twice while only having the first formula once? $3,000 vs. $1,350. So I guess the trophy of earning 97% gross far out ways the reality of earning only 60%, twice.

I mention this because ChangingStreets.com agents sell twice as many homes than all but one company in the area, our agents do 24 transactions a year the actuall board average is 3.4! But agents selling ten homes a year will brag they make 90% commission. Buddy said to one 90% agents that was bragging up his Career at T Rex (name changed but you get the idea) while bagging Buddies groceries, true story!

Welcome to the world of real estate brokerage. 97% of the agents in America would pick option A, work at a high paying (percentage wise) mediocre brokerage than work for a lower percentage at a great brokerage.

Why is it that in every other industry in the world people specialize? Law Firms have partners that specialize in different aspects of law, Doctors specialize, engineers specialize, yet Real Estate sales agents are a one man army.

We will not debate levels of education. There are some pretty educated in real estate, however on a over all basis they do not come near the combined education of the above professionals’ at the client/patient interaction level.

Why does Real Estate remain this archaic? Because consumers allow it. They assume and tolerate a certain level of service as oppose to seeking the best and demanding service and accountability. So why would real estate agents specialize? The consumer does not demand it.

As a consumer I demand very high standards. I want the best at what he does, not the loudest. I ask for proof, not their word they are capable. This works well, the sleeves on my suits are the correct length, my 401k outperforms the market…..

There is nothing wrong with hiring a professional and letting them work, finding one is the tough part.

As the economy in our area and state is in a state of flux, maybe the easiest way to fix it is for consumers, business and state align their goals, demand the best and demand results.

Or we can take the 97% plan. That has worked great for the last 37 years.