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  • Tuesday, October 22, 2019 9:04 AM | Karin Shaw (Administrator)
    Stop chasing better splits! It's your net that truly matters  by Jeff Glover, a REALTOR®  with Jeff Glover & Associates in Michigan

    You have to ask yourself: Are you making the right decision based on your net, or are you making the decision based on your ego?

    Over the years, I have witnessed or have been involved in many conversations with agents who are constantly chasing or looking for a company that will give them a higher split.

    Anytime I get asked what my thoughts are on that, I sort of chuckle inside and think to myself “Boy (or girl), do you have a lot to learn.” You see the question you should be asking the broker or leader of a company is not “What is my split?” But instead, it should be “What is my net?”

    And, quite frankly, net doesn’t always have to mean money. The veterans and mature business people understand that net is more important than split.

    Time and time again, I see agents who make a decision to leave a successful company or team to do their own thing or to have their own company. And what I observe, in 90-plus percent of those cases, is the agent actually ends up netting less money or even worse, spending less time with his or her family (and making less money).

    I heard a long time ago from one of my first mentors that you can feed your ego or you can feed your family — pick one. So what does “net” actually mean?

     Here are five places where your net matters more than your split:

    1. Your taxable income at year’s end

    Not what your 1099 says, but your income minus your expenses. This is an important one because many agents who chase a higher split are so desperate in their attempt to find it that they forget to calculate what everything else will cost them.

    You see, if you are paying a split to a company, you are generally getting something in return. If a company offers a higher split to the agent, there’s no money to offer anything in return, thus increasing your actual expenses. I’ll never forget a conversation with an agent a few years ago … he was sitting in front of me asking what his split would be given his years of experience.

    Of course, he asked in an entitled way expecting that he should be favored.

    Before I responded, I asked him what his current split is and he responded with “I pay my broker $15,000, and after that I get 100 percent.” I said OK, that’s fair and then asked him what his GCI was last year, and he responded proudly with “$140,000.”

    I congratulated him and then asked if he pays taxes. And, of course, his response was “yes,” so I followed it up by asking him what his taxable income is after paying all his expenses, and he responded with (not as proudly) “$72,000.”

    I said, “OK great.” And then I pointed out to him that he’s essentially on a 50/50 split, and he started to shrink in his chair and finally got it and said, “What would my net be here?”

    Just then, he started to understand what it means to be a business person.


    2. Your ability to learn and grow

    I have yet to find a discount broker that also offers a training and coaching program designed to increase your net. Want to know why? Because it doesn’t matter how much you sell, they will never make more, so what’s the incentive for them to make sure you succeed? That’s right, there isn’t one.

    I know some of you might laugh at this one, but you actually want to be with a company that has a vested interest in every transaction you do. What’s amazing about that is you’ll actually do more because of the support, thus increasing your net.

    3. Your support and help resources

    I don’t care whether you’ve completed 100 or 1,000 transactions, you will always have a situation where you need questions answered or help with a task.

    Generally speaking, companies that offer a higher split have a very lean budget, and therefore, one of the first positions to go or not get filled at all is in the support department.

    Salaries are the No. 1 cost of a successful real estate company, and if there’s no money to pay talented staff, unfortunately you are on your own.

    4. Your conversion rates will net you more money

    Think about this: If you are with a company or team that no one has heard of (and studies say that consumers relate better to companies they recognize), then do the math.

    By brand they recognize, I don’t necessarily mean a franchise. There are many teams and independent brokerages that have just as well-known names in communities as the franchises that have been around for 30-plus years.

    If you go on 10 appointments with a “no name” and 10 with a name that is recognizable, will your percentage of contracts signed be higher? Of course, it will!

    You could go from getting 5 out of 10 to 7 out of 10 just from that alone. Pretty sure if you do the math on an extra few contracts, per 10 at bats, your net will be higher.

    5. You can actually get more of your time back, which is the ultimate ‘net’

    Solo agents or agents with companies that promote high splits just simply do not have the resources to provide the world class systems and people that are there to help you be more efficient.

    The nice thing is, once you decide what you want to net, you can actually work smarter and not harder because all of the systems and people have been trained to make your life easier and ultimately give you back more time!

    So what is your time worth? $30 an hour? $50 an hour? $100 an hour? Regardless of your answer, I betcha it’s worth more than an extra 10-20 percent!

    I hope you take the above thoughts into consideration and more importantly, start thinking like a mature business person and not an amateur agent starving for more commission.

    So you have to ask yourself: Are you making the right decision based on your net, or are you making the decision based on your ego?

  • Wednesday, October 16, 2019 3:01 PM | Admin (Administrator)

    According to the Hawaii Information Service statistics for September 2019, in North Kona, the median price of a single-family home for September 2019, is BELOW that of September 2018 at $688,000 this year compared to $719,500 last year. Year to date, the median price of a home in North Kona is $648,838 compared to 2018 when it was $655,000, .94% decrease year over year. 

    The condominium market in North Kona has popped up 13.95% year over year from the median price of $297,500 in 2018 to $339,000 in 2019. Year to date the median price has increased by 4.02% from last year from $330,00 to $343,250. 

    In North Kona, 45 single family homes sold in September 2019 vs 38 in 2018, an 18% increase year over year. For condos, 299 were sold last year vs 35 in 2019. In South Kohala, number of homes and condos sold only varied by two sales less this year than last.

    Signs Showing Market Peak?

    Interesting to note, according to the Griggs Report, the total 12 month sales for homes priced up to $4.0M remain well over 500.    This is reminiscent of the numbers seen in 2002-2003 leading up to the last market peak.   If pending sales remain in the 90+ range, we should continue to see 500+ sales per 12 months on homes priced below $4.0M.

    Would be homebuyers are looking for the sweet spot under $700,000 with 50% of the sales in September falling within the $400K to $700K price range, with only 55 homes listed under $900K.    

    Interest in buying a home on Hawaii Island is strong in both East and West Hawaii as the pending ratio has increased in both markets. Usually home sales slow and inventory increases in the early fall, but this year, activity remains brisk. 

    Shrinking inventory

    Similar to residential and condo statistics, land statistics show a shrinking inventory.  The continued strong sales numbers will contribute to a decline in inventory and increased price pressure, which is already showing up as the median price has increased 9% after many months of showing decline. Pending sales declined this past month. 

  • Monday, October 07, 2019 10:54 AM | Karin Shaw (Administrator)
  • Friday, September 20, 2019 9:56 AM | Karin Shaw (Administrator)

    August 2019 residential sales up for North & South Kona! 

    Click here to see August statistics

  • Friday, July 19, 2019 2:19 PM | Karin Shaw (Administrator)

    Here is the video link of the Short Term Vacation Rental Forum on July 10, 2019.

  • Monday, July 08, 2019 11:51 AM | Linda Martin (Administrator)
  • Wednesday, July 03, 2019 9:00 AM | Karin Shaw (Administrator)

  • Monday, June 24, 2019 12:59 PM | Karin Shaw (Administrator)

    The West Hawaii Association of REALTORS® (WHAR), a Hawaii non-profit corporation, granted eight (8) $1,000.00 scholarships to Hawaii graduates continuing onto Higher Education.   Selection criteria included: financial need, scholastic achievement, school activities, community involvement, and a written essay.

    Scholarships were awarded to Kealakehe Graduates: Savannah Dallas attending Washington State University; Josiah Randerson, Chapman University; Lisa Lowe, UH Manoa; and Liana Lawson, Oregon State University. Konawaena Graduates: Jake Basque, US Naval Academy; and Tiffany Bayudan, Pacific University Oregon. Makua Lani Christian Academy: Shayna Valencia, Colorado State University; and Reisa Waddell, University of the Nations.

    Fundraising Chair, Mike Drutar, Broker-in-Charge, Windermere C&H Properties, stated, “West Hawaii Association of REALTORS ® believes in and supports educational opportunities for students in West Hawaii.   We are extremely grateful to all the businesses, brokerages and charities who supported this fundraising effort. A special thank you to Lovette Llantos, Principal Broker, Venture Sotheby’s International Realty, who was instrumental in donating $2,000.00 from the Kona Visayan Tennis Club, and Daryl Flem, Principal Broker, Windermere C&H Properties, for their generous donation of $1,000.00.”

    Each year the WHAR membership of over 750 REALTORS® recommend charities to be the recipient of proceeds from an annual Charity of Choice Fundraising Event.  Past recipients include, The Arc of Kona, Habitat for Humanity, Hale Ohana Aloha (a partner of Habitat for Humanity), Hospice of Kona, and Kona Historical Society, among others.

    West Hawaii Association of REALTORS ® enhances member professionalism through relevant education and services, with an emphasis on community involvement.

  • Tuesday, June 04, 2019 10:30 AM | Karin Shaw (Administrator)
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