Lately I have noticed a trend on the part of local Realtor boards and real estate companies to downplay the use of the phrase multimillion dollar producer. I have discussed it with several agents, brokers, and instructors from out local Realtor board. It seems the decision to do so stems from misconceptions on the part of the public as to the exact definition of a multimillion dollar producer in the industry.
You see, many consumers hear the phrase and immediately think that it means the carrier of the title makes millions of dollars by selling real estate. This is not at all the case, in fact it may not be further from the truth. However, I can understand why people would have this misconception when I stop and think about the phrase for a brief moment.
A multimillion dollar producer sells enough real estate to total in the millions. While they do indeed make commission off of these sells, that commission does not total in the millions. If you sell two $500,000 homes in a year, then you are a million dollar producer. Selling two homes in a year doesn't really sound like you are setting the world on fire now does it? If you sell four $500,000 homes in a year, you are now a multimillion dollar producer because you have sold two million dollars worth of real estate.
This is how one becomes a million dollar and a multimillion dollar producer. It has nothing to do with the amount of money that a Realtor makes, at least not directly. Obviously the more you sell the more you make, but the phrase doesn't make you a millionaire by a long shot. Instead, it simply tells the volume of sells that you have made which is directly tied to the number of and the price of the homes you sell.
So, with all the confusion out there over these phrases, and the obvious misconceptions that follow we are experiencing the death of the multimillion dollar producer. We still have them, we just have more and more of them that no longer use it as part of their advertising campaigns. It's just one more effort on the part of some Realtors to clear up the publics confusion as to how our business works.
JL Boney, III - Columbia, SC Realtor - Coldwell Banker Residential Real Estate
I specialize in Columbia, SC real estate and the surrounding areas, including Blythewood, SC, Kershaw County, Fairfield County, and Lexington, SC. If you are in the market to buy or sell a home in Columbia, SC or any of the surrounding areas, I would love the opportunity to speak with to see how I can help. Thanks for reading and feel free to contact me if I can be of service to you.
Office- 803-788-1450 Cell- 803-730-9601 Email- James_Boney@Yahoo.com