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Juggling the Books

Posted July 2nd, 2008 in Real Estate, Real Estate Stuff

Good Value

Visiting Vancouver’s Granville Island Market on a sunny day always delivers good value. Today, a talented female juggler performed her art with skill, dexterity and good humor as she juggled flaming torches being careful not to ignite the supporting volunteers. Gracious, she sought recognition and loud applause for those spectators who assisted. But, it seems she did this all for free.

Is Anything Really Free

In our world or rising prices for gas, food, clothing and homes, free seems the best deal on earth, but free is misleading. Is anything really free? The juggler paid for her costume, fuel for the fire wands, PA system, and time to train and perfect her skill?

Great effort to entertain was made and as evidence the spectators reacted with much value applause for her effort and performance but, they did not reward her. She worked for free. Performing and juggling, is a business. The juggler’s work is hard, somewhat dangerous and as seen in her concentration, stressful. Like you, she too is living in a high priced world and as such she is not immune to the cost of doing business. Like you, she needs an income to support family, car, home, pay taxes, and education. Free does not mean she is able to sustain herself on applause and good wishes of spectators?

Guarantee

Unconfirmed speculation suggests (someone will let me know), that to obtain the right to perform in this venue she auditioned, was selected and with a provision she completes a number of shows, will be paid a stipend. Under this arrangement her cost of doing business may be covered with perhaps a little left over. At risk is her real income. It is derived from the good will of perceived entertainment value. Her performance challenge is to induce her benefactors, the audience, to “top up” her income in recognition of a job well done. For this performance, the risk of minimal income seemed remote as the signals were there in loud and long thunderous applause and smiles big and wide. Risk won this time as the mass of potential benefactors did not come forth to deposit monies in her “Show Me You Love Me” hat. This time the top up was little. The spectators chose to be entertained for free.

Free = Zero Plus

Effort, training, experience, and well honed skills as witnessed in the lady juggler, do not assure positive outcomes. Luckily the allowance given to the juggler helps minimize the risk of a moody audience. Risk for the Realtor is as complex. Market influences including interest rates, government policy, local and world economic influences all play a part. Comparing, the Realtor has no stipend to minimize risk associated costs. Without a guarantee and the positive outcome of a sale, operation costs for a Realtor are more than time and effort. Ongoing marketing and business operation costs continue throughout the selling mandate. Simply, if a home does not sell, the Realtor does not get paid and their “show me you love me” hat is as empty as the juggler’s. With a certain irony, no guarantee and no sale means the Realtor will do some creative accounting by juggling numbers so that free equals zero income plus costs. Just sayin…..

Got a Vancouver Real Estate question? Always happy to do my best to answer it. Call or send me an email. Larry

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