Comments on: Real Estate’s Independent Contractor Model Broken

By: Homes For Sale inAtlantis Florida

Homes For Sale inAtlantis Florida — Mon, 07 Nov 2011 01:35:49 +0000

Homes For Sale inAtlantis Florida…

[...]Real Estate’s Independent Contractor Model Broken[...]…

By: Gary Lucido

Gary Lucido — Sat, 29 Oct 2011 22:13:17 +0000

There is a lot of truth in what you say. It is obviously advantageous that real estate agents are not treated as employees for tax purposes. However, that doesn’t prevent brokers from treating their agents as employees from an operational standpoint. That’s what we do.

By: Barry Rose

Barry Rose — Sat, 29 Oct 2011 22:06:46 +0000

The reason the business model is as is is because of NAR. All real estate agents are statutory independent contractors under the Internal Revenue Code for federal tax purposes. How do you think that happened? NAR is controlled by the large firms and Brokers who want the status quo. There are cracks developing, but not legally as of yet. Individual state associations of REALTORS® also support the status quo. Keller Williams, for example, (and perhaps others) treat listings as belonging to the agents and not the Broker, yet does persisit with the Independent Contractor model because it is a fact under federal tax law. Why don’t you suggest to NAR that they support an effort to change the law under the IRS first, then we can attack who owns what at the state levels.

By: Gary Lucido

Gary Lucido — Tue, 27 Sep 2011 17:53:06 +0000

No one is crying about the fact that the business is tough for agents – except those agents. What the consumer is crying about is the fact that there are a ton of crappy agents in the business. It’s not enough that the cream rises to the top because the consumer isn’t in a very good position to determine what is cream.

By: Metroman

Metroman — Tue, 27 Sep 2011 17:23:57 +0000

The saying is ” 80% of the business is done by 20% of the people. Another saying is “the cream comes to the top” and both are true in addition to “when the going gets tough the Tough get going.” So quit crying, the business in not for everyone.

By: Intel Warrior

Intel Warrior — Sun, 21 Aug 2011 08:44:12 +0000

insider news…

Real Estate’s Independent Contractor Model Broken…

By: ZipRealty Refocuses Strategy | Getting Real

ZipRealty Refocuses Strategy | Getting Real — Mon, 16 May 2011 17:30:57 +0000

[...] the traditional route with independent contractors. This is a huge mistake in my opinion since the real estate independent contractor model is seriously flawed. Somehow they believe this is going to save them overhead. I'm not at all clear on that unless they [...]

By: Patti Gray Whann

Patti Gray Whann — Sat, 24 Apr 2010 14:16:02 +0000

Hi!
I am a broker and owner of a real estate business. i opened up 2 years ago in upstate New York. I am a small boutique business. I spent 4 years with Century 21. Otherwise I was a social worker for 17 years. Perfect match, this is a people business. I agree that this model is broken and the government has no more money and that we are going to see that agents are no longer independent contractors. I am in the building business as well and they just put in our New York State budget 1 week ago that General Contractors will not be able to hire IC on the job. Everyone will need to be an employee..They have run out of money with workers comp and unemployment. they need to reach out and stop the bleeding with IC’s. Brokers have always skirted this law..When NAR comes out in print saying we have nothing to worry about is criminal. We all need to pay attention to what is happening.

By: Randy Whiting

Randy Whiting — Wed, 21 Apr 2010 18:28:13 +0000

With all sorts of people out there changing one thing about the status quo and calling it a “new spin” I really enjoyed reading about your business model which is authentically a breath of fresh air. You’re right that managing brokers are not taking enough ownership of those who represent them more than any amount of marketing they do on the internet or in print; the Agent. Quality control among agents is sub standard and with the rapidly changing regulations surrounding real estate it seems to be only getting worse. I had an agent the other day that argued with me til he was blue in the face that the tax credit was not a refund but a reduction of taxable income. He actually called his mortgage person in front of me and had to leave with his tail between his legs. This is a full time agent who has been in the business for years. Besides that I read and write a lot in the blog world and am shocked at the false information that these “guru’s” give out to unsuspecting buyers on a blog site who are getting even worse information from the agent they have. Not to analogize with a stigmatized industry, but if you look at the car sales business, the salespeople are in most cases 100% commission (no base), and the added draw is that they are employees so they still receive benefits. To an agent that is doing well enough to live but not afford insurance, this would be a huge plus. Many agents are doing well, but not well enough to afford insurance or to get themselves looked at by a physician or a dentist which adds a lot of stress and risk to a person’s life. It gets to a point where you can smell the desperation on them, and that sent is not attractive to clients. I give you kudos for not only implementing this business model but spreading the word. There are enough boutique shops out there that could adapt this model and maybe even change the way this business is run eventually. Best of luck!

By: Bill Fulton

Bill Fulton — Tue, 20 Apr 2010 22:26:33 +0000

Down here in Orlando many real estate aents, includin myself, have oped to join low cost agencies where a small monthly fee is paid as well as a transaction fee. Other than that we keep 100% of the commissions. But you are right, the agents have to market themselves and web marketing is unique. And most agents down here are starving also.