Realtors and Loan Officers - cougarguard.com — unofficial BYU Cougars / LDS sports, football, basketball forum and message board

jay santos · 09-07-2007, 06:54 PM

The problem with the industry is two fold.

1. Incentives aren't aligned to help customer.

2. Too much fat in the industry. You can measure fat by doing a time study on the activities of realtors and loan officers and determining how much is value added to the customer. Most of what they do is prospecting for new customers. That means the commissions are too high and there are too many of them in the field. Commissions need to be driven down and #s of realtors and loan officers should be driven down to the point where they are providing value add with their time. A new customer is worth so much and the time spent with a customer is so little in real estate that a realtor can spend 70% of his time prospecting. If that number were cut in half, commisions would be cut in half, # of realtors would be cut in half, and realtors would make the same money.

09-07-2007, 06:54 PM	#1
jay santos Senior Member Join Date: Jan 2006 Posts: 6,177	Realtors and Loan Officers The problem with the industry is two fold. 1. Incentives aren't aligned to help customer. 2. Too much fat in the industry. You can measure fat by doing a time study on the activities of realtors and loan officers and determining how much is value added to the customer. Most of what they do is prospecting for new customers. That means the commissions are too high and there are too many of them in the field. Commissions need to be driven down and #s of realtors and loan officers should be driven down to the point where they are providing value add with their time. A new customer is worth so much and the time spent with a customer is so little in real estate that a realtor can spend 70% of his time prospecting. If that number were cut in half, commisions would be cut in half, # of realtors would be cut in half, and realtors would make the same money.