Notorious POD, Ep. 25: Problems with REALTOR Compensation with Peter Lohmann

Lohmann is spot on with this industry being all about desk fees, best of luck changing that. The industry, led by NAR, could not care less about skills, qualification or any performance; just pay the monthly fees and associated local/state/national fees. One of two things may change this – really only one has a slight chance –

1. Get the public to demand professionalism among agents. There is ZERO chance of this because buyers/sellers will feel guilty if they don’t use a friend or relative. I’ve seen exceptionally smart and successful people use complete dummies due to social or familial guilt.

2. Raise the entry and retention bar. Do what the appraisal industry did; intern period then classifications based upon experience and volume. This allows some separation between hobby agents and pros.

Remote chance because NAR will never slay the golden goose of monthly fees. Of course, maybe the IRS should press the “independent contractor” nonsense agents fall under. If brokers we’re required to maintain agents as employees perhaps that would change things. How the IRS doesn’t challenge this is crazy, I cannot hang my license with another firm, I’m provided a personal office and I have to follow company guidelines. How am I independent?

This entire industry is bogus – but it shows the superpower of NAR and the stupidity of the public.