Start-up costs are steep, not to mention brokerage fees. Scoring the first deal is the biggest challenge for a newly licensed agent. The majority of transactions in any market are generally handled by a small percentage of realtors, and many newbies end up leaving the industry within a couple of years. But the influx of hopefuls is still causing headaches. Many turn to friends and family in hopes of securing their first listing. Even established agents will occasionally lose business when, say, a clients cousin obtains a licence and the prospective buyer feels obliged to go with family. Others will compete with the only tool they haveprice. Theyre so desperate theyre willing to cut their commission, says Chris Borkowski, a real estate agent in Toronto. Established agents cringe at the service provided by these perceived interlopers, and frequently see homes that are poorly marketed and end up selling for far less than they could have. Fleming took note when a penthouse in his building recently sold for less than the list price. It wasnt staged.
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