Well let’s do the math. There are 1330 agents in Victoria and only 395 sales in September (that’s 790 ends) therefore many realtors did not have a single sale last month.
A good portion of the public doesn't realize this: Realtors work in a commission based industry. We do not make any money if we do not make a sale. Also, we do not get a salary from our brokerage! In fact, we pay an arm and a leg to be a part of a brokerage. We pay to have an office, colour copies, parking, coffee, sale fees, listing fees, board fees… and then we pay a percentage of our commissions as well. It`s a very expensive industry to work in so it`s no surprise to me agents are taking on a second job or getting out of the market completely.
When the market slows down, it can be stressful. Listings we thought were going to sell 2 months ago are still on the market. When the homes eventually do sell, we do not get paid until completion. There is a lot of uncertainty about where your next pay cheque will come from and how much of it has already been accounted for by the long list of expenses. That`s why it`s important to have three months of income in the bank at any given time.
These slow times don`t last forever though because markets are cyclical. There is always going to be ups and downs. The lack of sales from August and September means there`s a lot of buyers out there waiting to buy. I feel like there is pent up demand in Victoria and in October and November we`ll see an increase in sales again. As an agent, it`s important to become an expert at riding the real estate roller coaster.
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