Real Estate Behind the Scenes--Games People Play by Alain Pinel

Author:Alain Pinel
Language: eng
Format: epub
Publisher: John Hunt Publishing
Published: 2020-02-24T16:00:00+00:00

That, in itself is a bit blurry since it is near impossible sometimes to distinguish between “individuals” and “teams”. We need to trust the agents with their own definitions… We’ll try to look at that in a moment.

The second level is based on:

Transaction Dollar Volume

Transaction sides

The obnoxious side of me wishes that a third category would be proposed: Total commissions dollars earned for all those deals.

Why? You guessed it: It’s a heck of a lot easier to accumulate listings and the $ volume resulting from the transactions when you charge 1% to get your listings than if you were to charge five or six times more.

If you were to put a sticker price under $20,000 for a brand-new Rolls Royce, you would have a lot more of these cars on the road than Volkswagen Beetles. Just a guess.

Anyway, given the choice between dollar volume and number of sides, I will always take the dollar volume. That’s where my heart is. I am a high-end guy. Call me a snob but I’d rather sell ten homes for one $million each than 100 at $100,000 a piece.

I am not the only one.

The proof is in the pudding. The huge majority of the winners, every year, specialize in luxury properties and do business in some of the most prestigious (and pricey) zip codes in the country.

No wonder most of the superstars are on one coast or the other. Out of the top 250 top individuals in the country, roughly 2/3rd are either in California or New York.

The other 48 states share the balance of about 30%. Who said life (or business) is fair?

Oh, by the way, there is kind of another category: the average price. At the risk of shocking a few, I will say in low voice that, usually, the winner had an average transaction price of $50 million (Told you not to look). Of course, for all I know, this agent may have sold only one home! I’ll take it anyway.

Even though the number of transaction sides does not speak to me, I’ll mention for the fun of it that the winner over the last few years sells way more than 3,000/y. Something like 300/month and 10/day.

This top dog in the so-called “individual” category also manages to win the trophy in the Dollar Volume category, closing about … $1.5B a year. In my humble opinion, he should compete in the “machine” category instead of the solo players, as his company is an online system dealing with a number of builders in several states. Don’t think our hero has seen the face of the buyers.

The numbers are mind boggling in the “team” category as well, both for units and volume. However I will skip the analysis because I just can’t judge the performance of a team if I don’t know what constitutes a team.

What is a team? Two people? 10? 20? 50? Size matters. Obviously if a team has a bunch of members, it has nothing to do with a husband & wife team, or whatever.

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