Successful? Why, yes I am.

Monday, April 09, 2007

Real Estate Agents

House prices here in Sydney are averaging around $450 000. For simplicity's sake, assume its $500 000. Thats half a million dollars.

Take the job of a real-estate agent. These guys charge on avg, anywhere from 2% - 4% of sale price as their commission. Assume again its just 2.5%. Now lets see what it is they do.

They come and take pictures of the place.
They put a huge styrofoam board outside.
They advertise the house in the local 'Homes Pictorial' (or any other local free house publication)
They take out 15 - 30 minutes on Saturday or Sunday to put that house as an open-home.
During the week, they may field calls from 'potential' buyers about queries etc.

This is all they do. But if they make a sale, thats $12500 per house sale!!! Its no wonder real-estate owners, and people who work in real-estate are multimillionares, most who choose to drive 3-series BMWs or C-class Benzs.

From a business point of view, I dont see it being that difficult to operate. I guess patience is a compulsory requisite, as is the need to invest some odd hours. (Especially weekend work)

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