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The Problem With Real Estate Agents In Miami Beach !badrealestatehomebanner

I spent the last 12 months interviewing, meeting and consulting with different realtors and real estate brokers in Miami Beach.  Prior to last year, I spent  24 years in the real estate industry in Los Angeles California. Prior to moving to Miami Beach, I was well aware of the image real estate agents in Miami and Miami beach presented and it was not a good image .

I 1st got a taste of the industry and the culture in 2002 when I purchase a 3 unit building around 41st on the beach. I witnessed my agent , the seller’s agent and my attorney go through the process ( the way they knew how ). This process left me with my mouth wide open. Please note that I come from a different way of training and doing business and I was not able to wrap my head around the way business was being done in Miami Beach.  As I began to ask questions, the usual the answer would be ” This is Miami “. Something told me , this cant be, it simply can’t.

Fast forward to 2015, my love for Miami Beach did not diminish and my way of doing business became more robust and I became very clear to who I am from a professional point of view. During my move and finding a place to live a year ago , I witnessed once again my realtor and other realtors behavior during my search , this reminded me of my old experience back in 2002 . This time I was again left with my mouth wide open but determined not to let this findings cloud my excitement about my new home town and to focus on the positive.

Although it was very clear there is something fundamentally wrong with the culture of realtors in Miami Beach and I was still in search to find out the cause for this effect . Instead of judging the situation , I wanted to know how I can help ? How I can make a difference and how I can be of service to put my 24 years of real estate to use ?  During my quest to find the cause and work on a solution, I met some and I say some wonderful and professional realtors and this is when I knew it can not be ” This is Miami ” is the answer to careless behaviors. Some of these wonderful agents to name a few are ….

To break it down , here are my findings which finally helped me understand the problem with real estate gents in Miami beach:

  • To my surprise realtors in Miami Beach gave themselves permission to work under brokers where a franchise fee is required on every closing just to have a ” brand name broker”. This is never heard of on the west cost.
  • It is really easy to get a real estate license in Florida , a lot more easier than California . While the liability for a California realtor is much greater ( do to the fact there is no attorney involved in the closing process ) , the liability for a Florida realtor is much lower , which might explain the reason behind the number of realtors in Miami Dade county . Miami association of realtors is the  LARGEST Local REALTOR Association in the U.S.100 %
  • Here is the shocker of all , a new realtor with a new license is expected to get a 70/30 %  split or higher from his new broker that is 70% to the agent and 30% to the broker. Some brokers offer 100% commission paid on to new agents on every closing. A 70/30 split in Los Angeles is for an agent making $100K in net commissions. Naturally I poised the question ? Why does a new agent with no training is worth a 70% portion of the commission or sometimes 100% ? Never got a clear answer , except ” that’s the way it has been done”. It is a typical symptom of a system that wants to remain “status quote system”. In the spiritual world , this symptom is called “bread of shame” or in other basic term ” receiving something without earning it”.
  • There is very little or almost none education being offered to new realtors on the job from their brokers. It is very common to hear the phrase from brokers ” I am providing leads ” . Providing leads to new agents without training is like giving your 16 year old child the keys to a car to go on the free way just because they just passed their driver’s license exam. It is just bad business practice.

Now I am beginning to understand the ” The Problem With Real Estate Agents In Miami “. It is really a mixer between the brokers struggle with investing in proper education with their agents and new agents perceiving this industry as being  easy and fast money making with very little investment.

If you are a new agent or thinking about getting into the industry and reading this blog , the one advise I can give you is that this perception could bot be further from the truth. This not not an easy industry and must be treated as a business, after all ” you ” want to be you own boss, right ? So ask your self the questions :

  • Would you hire yourself with no experience at 70/30 or 100% split ?
  • Would you hire yourself with no hands on experience ?

I love my new home town and I am poised to offer any information, advice , perspective to you as needed. Please feel free to comment below especially if you are or thinking about becoming a realtor in Miami Beach.

Follow me on Instagram @ yosephwest

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