Vail Daily letter: Real estate agents make a difference
Vail, CO, Colorado
In response to the recent builder letter eschewing the real estate community, here’s a slightly different view.
My wife and I too are builders (40 years) and have divided our time between Florida and the Vail Valley for many years. The global economic downturn has had a significant impact on us as well. We have gone from 32 dedicated employees to five in the last four years. We too have had the displeasure of attending a closing with cash in hand to facilitate transactions.
The market downturn has been hard on real estate brokers as well. Since the dramatic reduction in real estate transactions and volume a few years ago, hundreds of hard working real estate sales agents have had to take up secondary employment to make ends meet or have simply left the business altogether.
I’m confident that during the last few years that in certain cases, real estate commissions have been negotiated by real estate companies, buyers and sellers in an effort to assist in making deals work for all parties.
The real estate agents and companies that we are familiar with are working harder than ever for their clients. Granted that since there are far more listings available now than ever, fewer agents are more thinly spread. However, brokers are spending huge sums on advertising and marketing their properties. Where would the Vail Daily be today without their real estate classified and print ads?
Today, transactions procured by real estate agents represent 60 percent to 75 percent of all closings in most markets across the United States. When many builders across the country were having liquidity challenges, the real estate broker”e community brought buyers to the table that were qualified and able to purchase homes albeit at “the new math” relating to market prices.
Our view is that the real estate brokerage community plays a valuable role in the home building process. As market prices stabilize and the homebuilding community returns to reasonable margins, paying large real estate commissions won’t seem so painful.
There are other options available for the sale of new homes including discounted broker”e entities, etc. Want to try a FSBO?