Real Estate Agents and Their Cars
By: Diane Tuman, Content Manager | January 18, 2008
There’s some fuzzy math happening in the real estate biz that I don’t quite get. Real estate agents don’t make a ton of money — not unless they’ve been in the biz for awhile, or they’re incredibly savvy in marketing themselves or they’re the Realtors to the stars or they’re just plain lucky. Six figure incomes happen to the top 10%, but most agents fit into the $26,790-$65,270 salary range. According
to the U.S. Department of Labor, the median income is $39,760 (May 2006). So how is it that they drive the nicest, most expensive cars?
My agent drove a gorgeous Lexus SUV, but she’s been an agent for awhile and has built up a pretty solid reputation. I see some land sharks out there who drive BMWs, Mercedes, and Land Rovers, but I can’t imagine how young agents just starting out can afford to drive their clients around in style. So, is it a show-stopper not to have a fancy car? If you were a client and your agent was going to drive you around, would you climb into a Volkswagen Jetta or Honda Civic or a dated Jeep Cherokee?
It looks like agents are even concerned about the image and car they drive. ActiveRain’s blog is filled with agents asking other agents what kind of car to use and it seems the popular answer is a nice SUV (it helps to carry the signs around). But, for green believers and shakers, there is an Eco Realtor in Madison, Wisconsin, that sold his BMW and began using a car sharing program! For some reason, Madison can get away with stuff like that. Maybe Portland, Ore., and Seattle, too, but I can’t see that trend catching on in many other major cities.
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Comments
21 Comments so far
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Benjamin on January 18, 2008 2:53 pm
I loved the post. In fact, I am from Portland Oregon, and I did the same thing as the guy from Madison!
Diane Tuman on January 18, 2008 3:34 pm
Benjamin: I knew there was a commonality between Portland and Madison, Wis.! What do you clients think?
Brian LeBars on January 18, 2008 4:28 pm
RE Agents still have cars? JK ; )
Luba Muzichenko on January 18, 2008 9:30 pm
I’d prefer to just grow wings and fly my clients around San Francisco. That would be the ideal scenario. I could carry a large basket that seats 3 adults and 1-2 children comfortably, and maybe a sign delivery system for those open house days - but considering that I haven’t sprouted wings just yet, well, I’m going to have to stick to my SUV. But I didn’t spring for a “fancy” one - I’ve got a nice Nissan that I practically live in. I love the idea of car sharing, but frankly, I’m busy - and if I want to be in 10 places in 2 hours, I don’t really have time to pick up/drop off a car on top of it. Now… back to googling “how to grow wings”………
With an E on January 18, 2008 10:52 pm
I was an assistant for one of the Coldwell Banker SoCal top 75 agents. Who was a bitch. Anyway, she drove a Jag, but an S-type- and came from Bev Hills regardless.
So what I was going to get to is… realtors are able to write off part of a car lease as a business expense. So yes, they (almost) ALL lease.
Marlow on January 19, 2008 1:00 am
I had a friend who sold real estate in NY and had to have a frank talk with many a buyer about transportation, just so there were no expectations of limo or car service, or even a taxi. They were taking the subway, unless the buyer paid.
Eva Erdmann on January 19, 2008 8:22 am
This is more than childish and plain stupid to make a comment like this “who drives what in real estate business” but since you started I will tell you this,I had quite a different experience were I had to be in vehicle with a real estate agent from Century-21 who smoked and I’m a non-smoker allergic to smoke.She wouldn’t even ask if smoke botheres me,I had to tell her not to smoke at least for a short time when I’m in the car.I didn’t like it it was very rude and unprofessional.She sold the house and took 7% commision and acted like this,this was a little bit too much for me.not regarding commision but what I was getting as a package for a lot of money after all.
As far as what real estate agents drive it’s a very important issue.Why would anyone object to be driven around from one property to the other in nice “Jag”as you said or BMW,this comes with profession.I almost refused to jump into this vehicle of smoking like a chimmney lady but it was very important to me to sell the house quick and I didn’t say too much.Now I know I should cause entire deal stinks just like this lady.
No one should deal with real estate agent who is rude,not clean or who does something person who is going to use services of this agent doesn’t like but talking about too good vehicle tells me you have a problem with someones success.
Los Angeles Living » L.A. Real Estate Links on January 20, 2008 5:16 pm
[…] for Gold Line Construction [Press-Telegram] · Construction plunges 14 percent in December [WSJ] · Are real estate agents leasing those fancy cars they drive? [Zillow] · Garcetti launches new foreclosure phone hotline [Daily Breeze] · A closer look at […]
Alfie on January 20, 2008 7:04 pm
I ditched the BMW and opted for better gas mileage with a Prius (http://www.cityburb.com/blog/index.php/2007/09/06/time-to-go-the-speed-limit/). Clients seem to like it better (we deal mostly with X/Y gen. buyers) and since I drive almost as much as a taxi driver, it made economical sense.
Tom on January 20, 2008 8:08 pm
I love when I see real estate agents driving around fancy cars. I think their mindset sometimes is that if they drive a fancy car, the seller will just assume that agent is good and use them. Sometimes they find that this just isn’t the case as some realors like to be what I call fourty thousand aires
impeachW on January 21, 2008 12:23 am
I think GOUGER or PHONEY when I see a Realtor driving a very high priced car.
I think, how many people did he rip-off with fees & commissions, or what kind of smoke & mirrors act is s/he pulling?
Lori T. on January 21, 2008 2:04 pm
I’m a realtor in Hoboken NJ and when I take buyers out in my neighborhood we WALK from unit to unit. In an urban area it’s simply the best way for buyers to really get to know the neighborhood. It’s also environmentally green, doesn’t worsen local traffic & congestion and helps the buyers understand that cars in a big city are a luxury, not a necessity. Personally, I ride my bike for transportation which is green, faster than walking and good exercise.
Sharon Klein on January 21, 2008 3:14 pm
To “Gouger”…would you say this of your stock broker, lawyer, doctor, accountant, or other professional?
Drew Meyers on January 21, 2008 4:03 pm
Let’s keep this comment thread about issues, not people. It’s unfair to characterize all realtors due to one or two bad apples you happen to know.
Comment on Real Estate Agents and Their Cars by Eva Erdmann | ImmediateRealEstate.com on January 22, 2008 5:42 am
[…] Charles Woodall article is brought to you using rss feeds.Here you will find the latest real estate news for buying and selling homes.As far as what real estate agents drive it’sa very important issue.Why would anyone object to be driven around from one property to the other in nice “Jag”as you said or BMW,this comes with profession.I almost refused to jump into this … […]
Comment on Real Estate Agents and Their Cars by Alfie | ImmediateRealEstate.com on January 22, 2008 5:42 am
[…] Diane Tuman article is brought to you using rss feeds.Here you will find the latest real estate news for buying and selling homes.I ditched the BMW and opted for better gas mileage with a Prius (http://www.cityburb.com/blog/index.php/2007/09/06/time-to-go-the-speed-limit/). Clients seem to like it better (we deal mostly with X/Y gen. buyers) and since I drive … […]
John N on January 22, 2008 1:18 pm
Successful or not, I love my 4 runner.
maybe if i sale cars for a living, i might upgrade to bmw or something
Santa Barbara Real Estate Voice on January 26, 2008 3:21 pm
Diane,
Not an uncommon topic in the world of real estate, especially here in Santa Barbara where the average home is around $1.25 Million and certain neighborhoods jumps up to the $3 Million plus price point.
I think for many Realtors, the car is very important and has image tied to it. I myself currently fit into your list of a little dated Jeep Grand Cherokee.
My thoughts are simply that you should have a newer car (within the last 12 years say) and that your car is simply clean and respectable. Beyond that I would personally not change my car for the image factor. But if it is done…to each their own.
Thanks for the post.
http://www.SantaBarbaraRealEstateVoice.com
mitsubishi-evo on January 28, 2008 2:30 am
interesting… but i don’t agree..
Jose on July 16, 2008 12:14 pm
I have a Miami limo service. The car is everything for impressing clients. Money well spent.
Kase Ellers on October 10, 2008 12:08 pm
I agree that some real estate agents really go over the top when it comes to the vehicles they drive but I want some people to think about a couple of things:
A. I’m not saying as a Realtor you need a Mercedes but if you’re successful you’re not going to be driving your clients around in a multi-colored Toyota Tercel.
B. Realtors live in their cars. Having something comfortable is a big deal. Plus a smooth ride keeps clients anxiety levels down.
C. SAFTEY!!! That’s always on my mind is I would feel so guilty if I was driving around a client and we were in a bad accident. So I got something larger and heavier - a Volvo.