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Full Service Baloney

Real Estate, Gas & Baloney

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Profitable Myths?

Regular gas has an octane rating of 87, midgrade gas is 89, and premium is 91 or 92.  Contrary to popular belief, the octane rating doesn’t indicate how much power the fuel delivers; all grades of gasoline contain roughly the same amount of heat energy.

Lewis Gibbs is a consulting engineer and 45-year veteran at Chevron Oil Company. He’s chairman of Technical Committee 7 on Fuels, part of the Society of Automotive Engineers (SAE) Fuels & Lubricants Council. Gibbs knows gas.  He fills his car up with regular gas.  Despite the allure at the pump of getting more horsepower or better performance by using “premium grade”, Lewis knows that it’s just simply not true. The gas companies know the truth.  They earn a premium-profit by allowing this little misunderstanding to survive.

The Full-Service Real Estate Myth:

The Real Estate Industrial Complex would have you believe that if you pay a 6% commission to a real estate agent, you’ll get better advice, better agent performance, and a higher selling price for your home.  If you pay less than 6%, you’re not getting “full-service” – you’ll be getting “limited-service”.  I’m sorry folks…this is simply not true.

Real estate agents are independent contractors, working for loosely-knit brokerages, that have no minimum service standards.  The best agents in the business work side-by-side with the laziest agents in the business.  They work at the same brokerage and they all charge a 6% commission to sell your home.  So who’s providing the full-service?

When you ask a real estate agent what “full-service” means,  you’ll get some kind of song-and-dance that includes service-blah, marketing-blah, advice-blah, negotiating-blah, blah, blah.  The reality is, there is no such thing as full-service in real estate, because there is no standard of excellence in the industry.  It’s a profession that requires about 90-hours of licensing-prep, a heartbeat, and a clean criminal record.  Sad, but true.

There’s nothing wrong with an agent charging a 6% listing commission.  But they shouldn’t do it under the guise of full-service…that’s BOLOGNA.

Photo by: Tom Spalding

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