“My friends who are westside realtors are cutting spending budgets and dipping into savings now to keep things going.”

“My conversations with friends who are westside realtors over the past few months (I know a few – hey everyone wanted to be a RE agent for a while, it seems) [reveal that things] are not good (for them). Telling me they are cutting spending budgets and dipping into savings now to keep things going.”
Girlbear at VCI 11 Feb 2013 2:51pm

12 responses to ““My friends who are westside realtors are cutting spending budgets and dipping into savings now to keep things going.”

  1. Boo hoo…

  2. This is just the tip of the iceberg. The lower mainland economy is so tied in with real estate activity. As the bubble begins to rapidly deflate, realtors, home constructors/renovators, mortgage specialists, and other indirect spin off industries (retail sales, restaurants, etc) will all be impacted. It will be very very interesting to see how fast this unwinds and how people adapt to this new world order.

  3. A lot of realtors hold investment properties. I bet there’s a lot of fraught decisions being made about whether to ride it out or sell now. Wouldn’t it be super to see an index of % listings that are owned by an agent or related party?

    • Real Estate Tsunami

      I think the smart realtors cashed out about between a year and 6 months ago. I know of one property in Westwind in Richmond owned by a prominent local realtor. He bailed out about 6 months ago.
      I mentioned that to “an observer” at that time. It sold for more than $800,000 over assessment. But we concluded, that the assessment value (for some reason) was far too low.

  4. Real Estate Tsunami

    A friend of mine 3 years ago quit a well paying full-time job to dabble in RE. When the slowdown started about a year ago, she was lucky to get her old job back.
    There are many realtors who have no experience outside of RE.
    I hope they scraped and saved, because many will not live comfortably.

  5. A close friend of our family has been a Westside realtor for nearly 20 years. A few weeks ago, while talking about a completely unrelated matter, he suddenly asked if we knew anyone who might be interested in his $2 million listing. Never before in 20 years has he tried to drum up business from us. We know a total of zero people with a spare $2 million, so this was completely ridiculous and seemed rather telling.

    • Your friend has made very very good money in the last 5-10 years. If s/he didn’t save for a rainy day then that is a shame. Good mortgage brokers and RE agents make 250k plus/yr

      • Naked Official #9000

        Loyal cadres don’t need post secondary!

      • Real Estate Tsunami

        Sheesh,
        Yeah, the few good ones.
        The rest are toiling at the open houses.
        Every community has a dominant realtor, whom you can easily spot from by who has the most signs. Big sign with big picture.

      • You really only have to get caught holding that last bad house (or two, or three) to go from “wealthy” to broke pretty fast.

  6. Like Ben Rabidoux said, if you are a Realtor who has put all your money in Real Estate, you are incredibly un-diversified.

    If your source of income is real estate commissions, you should put your savings into ANYTHING IN THE WORLD other than real estate. Do not own even one property; rent. Do not buy bank stocks or developer stocks.

    Property-owning realtors have bet both their savings *and* their careers that a single investment will suddenly break out of 100 years of historical performance and perform wildly differently…forever.

    And given that such “savvy” real estate speculators are always highly-leveraged, realty is the one profession in which you could go from earning $250,000/year and having $1MM in equity to earning zero/year and having $2MM in DEBT…in 6 months.

    What a rush that must be.

    • Real Estate Tsunami

      Not much different from the financial adviser, who advises you to invest into the hot risky stock that he just bought.
      The all are so deep into their own crap……

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