# Becoming a realtor



## Stee_Bun (Oct 10, 2016)

So I am invested in courses right now that will guide me on my way to becoming a realtor, right now that is my goal. As i drive around town i see houses for sale with names of realtors on them, no biggy but i start realizing there is a realtor in my area with and identical first and last name as me except his name is Steve and mine is Steven. What are the chances of that being an extra obstacle for me on becoming successful in that industry?


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## Just a Guy (Mar 27, 2012)

Considering 1/3 of new realtors fail in the first year, and another significant chunk fail within 3 years, I think your name is not your biggest worry...

Not to mention technology is really changing the industry and commissions are under threat.


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## OnlyMyOpinion (Sep 1, 2013)

I don't see any legal issue. It could cause some confusion if you work the same market (and more so if you end up with the same outfit).
I would be more disturbed as the exisitng realtor. It might be a good idea to introduce yourself if/when you end up in the business and (jokingly) 'apologize' for having such a great name. It is competitive for listings, but it also runs on referrals and networking. 
If Steve has a good reputation it might work in your favour (folks contacting you thinking they are contacting him) :sneakiness:
If he has a bad rep?


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## Stee_Bun (Oct 10, 2016)

Just a Guy said:


> Considering 1/3 of new realtors fail in the first year, and another significant chunk fail within 3 years, I think your name is not your biggest worry...
> 
> Not to mention technology is really changing the industry and commissions are under threat.


In what sense are the commissions being under threat?


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## Stee_Bun (Oct 10, 2016)

OnlyMyOpinion said:


> I don't see any legal issue. It could cause some confusion if you work the same market (and more so if you end up with the same outfit).
> I would be more disturbed as the exisitng realtor. It might be a good idea to introduce yourself if/when you end up in the business and (jokingly) 'apologize' for having such a great name. It is competitive for listings, but it also runs on referrals and networking.
> If Steve has a good reputation it might work in your favour (folks contacting you thinking they are contacting him) :sneakiness:
> If he has a bad rep?



Thats definitely a good way of thinking about it, thanks!


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## Spudd (Oct 11, 2011)

Stee_Bun said:


> In what sense are the commissions being under threat?


There are lots of DIY options now where you can get your property listed on MLS for a few hundred bucks. There is talk of opening up the past sales data to the public which would also decrease the need for a realtor. If the data goes wide open I can see realtors losing a lot of business because suddenly there's no big advantage to getting a realtor if you're willing to do a little research yourself.


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## Just a Guy (Mar 27, 2012)

Back when houses cost $10-20k on average, a 7% commission wasn't bad. When houses went up to $100k/door it wasn't outrageous to pay someone to market the house still, there are expenses after all...

Today, the average house price is $500k, making the commissions $19k...with no real increase in advertising costs or service...people are starting to catch on to this and there is a backlash that is gaining a lot of momentum...hence property guys, comfree, 2% realty and others.

There is also a call for opening up the historical data as spudd mentioned...

I think the golden era for realtors is over, it'll decline going forward, not disappear, but become much harder...and it's always been a hard profession with a high failure rate, even apwith the current high commissions...imagine when those get cut.


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## sags (May 15, 2010)

I agree with JAG. 

Realtors have as limited a future as insurance agents and brokers. I talked to my agent (over 30 years) and she says she doesn't think her job will last until retirement. The insurance companies are all opening up direct selling via the internet these days. The insurance companies can offer cheaper rates online because they don't have to pay broker and agent commissions.

Many realtors are working part time at it. Retired people looking for something to add a few dollars a month. If they sell something........fine. If they don't they still get to eat. There are always a handful of the "top agents" in an area who obtain most of the listings and complete most of the sales.

My old realtor was full time and now he is selling used cars on the side. He is a realtor/used car salesman now.

I would think real estate and insurance appraising and adjusting might be a better choice of occupations within those industries.


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## Mechanic (Oct 29, 2013)

I think the heyday for realtors is going to come to an end. Commissions are outrageous. I sold a property recently that was under 500k and when realtor wouldn't negotiate her 7 +3% I just went to another realtor for 2%. Same deal with another property that was a bit more. I know someone that sold a 900k property within a few days and had to pay the realtor over $30,000 !! What a joke. As more and more people realize they can get better rates the rates will drop. I love watching those glitzy shows on tv where they are all driving exotic vehicles and making $200k commissions though, lol. I suppose when you own multi-million dollar properties and have insane income streams, maybe it's irrelevant ?


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## sags (May 15, 2010)

Our property insurance breaks down the cost and they pay the broker/agent a 15% commission every year.

We have been with the same agent for 30 years and don't mind paying as it helps her have a job, but when she leaves..........so do we.

We might as well put the 15% in our pocket as pay a new agent to take over her business.

Realtors are facing the same future. It has got to sting to cut a cheque for $30,000 to an agent.

I don't think "loyalty" to an agent or company is as important a concept as it used to be.

The internet has changed the world.


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## Mukhang pera (Feb 26, 2016)

It's been decades since I sold a property using the services of a realtor. But in British Columbia at the time, the custom was to pay 5% on the first $100,000 and 2% on the balance if the listing was exclusive and 7%/2% on an MLS listing. 

I do not know if it's true, but once upon a time it was rumoured that in Ontario (or at least Toronto) realtors charged 5 to 7% on the full gross amount! So a million-dollar sale meant a commission in the order of $50,000 to $70,000. Nuts.


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## the_apprentice (Jan 31, 2013)

As a realtor, I completely agree with what has been said. Many of my friends have failed at making real estate a full time career and have returned to their 9-5 jobs for the consistent pay. Although one should be cautious I am not here to discourage you. It is a very difficult career choice although can be extremely rewarding.


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## sags (May 15, 2010)

Mukhang pera said:


> It's been decades since I sold a property using the services of a realtor. But in British Columbia at the time, the custom was to pay 5% on the first $100,000 and 2% on the balance if the listing was exclusive and 7%/2% on an MLS listing.
> 
> I do not know if it's true, but once upon a time it was rumoured that in Ontario (or at least Toronto) realtors charged 5 to 7% on the full gross amount! So a million-dollar sale meant a commission in the order of $50,000 to $70,000. Nuts.


Yes, a full 5-6% fee is what we paid on the 5 homes we owned and sold over the years.

As our housing market was flat most of the time, that is why I always say we didn't make any money in real estate.

After real estate fees, lawyers, moving expenses and disbursements, we were lucky to break even sometimes.


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