Commercial Update: Florida

Commercial RE is exciting right? Well only if you are making money at it. I hear it all the time, brokers giving away their services for "Free"! What profession can you get "professional" business advise, consulting, or services for Free? Well, in Real Estate, both Residential and Commercial, it is common practice.

Do you know the average hourly rate for a Lawyer is $200-$300 per hour? And half of the time, if not more than half of the time, you are not getting the lawyer's individual expertise, you are getting a "paralegals" expertise and the lawyer just is finalizing the documents, advice, etc. Know for all you lawyers, do not get mad yet. We need you, we know that. And you have worked long and hard to earn that degree on your wall. But the reality is we have worked long and hard to build up a book of business, our degree happens to be more in "Hard Knocks" or "street business" than the prestigious law degree.

Why do we as professional Real Estate practitioners give away our services? I think it is because many of the inexperienced agents and brokers are afraid to ask for retainers, up front costs, or hourly rates. I am successful, and I always get a retainer or some sort of equity position within a deal. Even if it is just enough to cover my advertising costs for the deal.

Point is that we are professionals, and for us to be compensated only by commissions is insane. That is why so many of us are struggling right now. That is why so many of us wonder why client A chose another agent and cut us out of the deal. This happens because the customer has no real reason to stay loyal to us, even with an exclusive agreement, because the customer knows that they have an easy out, just provide you with notice and you are fired.

We need to take control of our customers. Explain to them the benefits of our profession. And begin demanding that we are treated as advocates, not as commission hungry "SALES GUYS (and GALS)"

So I say, from here on, start demanding more skin in the game from your customers, and if they won't agree to it, then find another customer that will. You will be more profitable and more respectable in the long run.