Why every second person is a real estate agent?

Toronto, November 13 (CINEWS): A few months ago when TK Virk was thinking of selling off his house and buy a new one, he found that his biggest challenge was settling on a real estate agent. “In the five years I’ve stayed at this house, three relatives have become real estate agents, two very good friends and my neighbor. All of them made me promise I’d call when I was ready to move and I foolishly said yes to them all to keep them all happy,” he said. In realtorsorder to avoid any bad blood, he decided to work with a complete outsider. The minute his For Sale sign went up on his front yard, his neighbor who is into real estate stopped talking. His relatives working as real estate agents feeling betrayed show it when they meet at  family get-togethers and his too very good friends aren’t that good anymore.
With the real estate boom defying gravity, commissions are in the thousands, so much so that the number of people getting into the real estate business has increased. In Toronto alone there are over 42,000 licensed at last count,
according to TREB (Toronto Real Estate Board). With the current interest rates at record low levels, there is a rush to get into the market before prices go up even further, all this has pushed the average price of a detached home in Toronto to about $600,000.
And with the price of detached homes in many parts of the city now approaching $1-million or more, a 5-per-cent commission sits at $50,000.
Naturally then there are many people with full-time jobs moonlighting as real estate agents on weekends and evenings. Taxi drivers, truck drivers, even government servants drawing six-figure salaries are among the many real estate agents hoping to make a few sales through their friends, colleagues and family members. The man selling you a Lottery ticket at a Convenience store could be selling you your next home in the evening!
An agent needs to do just half a dozens sales in a year to make $82,500 before expenses.
As the economy threatens so many jobs, many people in the real estate business see it as an insurance policy and a job they can fall back on if and when hard times hit. As things stand, they see it as a win-win situation. Even if prices start to fall, they see themselves in business as one real estate agent said on condition of anonymity, “Many of his clients have pushed themselves to their financial limit to buy their dream home and if prices start to fall, I can expect their panicked calls,” he said.

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