During the time of an economic slowdown there are two professions that may actually benefit with increased business, these are Real Estate Agents and Executive Head hunters. With the increased business many myths are formed and these myths surrounding both professions can be somewhat similar. The two are not that unlike if you think about it. The help of a professional is enlisted to fill an opening – your home, by finding you a buyer – or your career, by finding you a job. And both professionals will receive a commission based on the sale, on one side it is a home on the other it is based on a person.
Myth: I will save more money if I don’t use a Real Estate Agent / Head Hunter.
Many people think that because of the commissions involved they will end getting more money if decide to forgo the use of a professional. While this may be true in some cases, in most it is not. A real estate agent and a head hunter will have a much larger network of potential ‘buyers’ to pull from then you would going at it alone. With a larger group of people this means the potential for an offer that is higher is more likely. However, if ‘giving away’ this money is really a deal breaker there are some things you should know first:A real estate agent is paid their commission based on the sale of your home. In that regards it is also in their best interest to get top dollar for your home. However real estate agents may be a bit more flexible when it comes to the amount of commission they will agree to take. As mentioned before, if the commission the real estate agent will receive is really that much of a deal breaker, take the time to negotiate and you may be surprised by the outcome.
A head hunter is never paid out of your salary, in actual fact the commission the head hunter receives is paid out by the hiring company based on the starting salary they offer you. So as you can see it is in the best interest of the head hunter to get you a fair offer, if not more so.
Marc Roginsky, a systems consultant at headhunting firm Prolink Consulting Inc. in Toronto, had this to say about the myth, “Companies that work with us allocate certain projects or job opportunities for agencies to fill. It’s in a whole different category of their budget, so they figure out what a year’s salary is for the position and factor in a percentage on top of it for the head hunter. The head hunter’s cut doesn’t come out of the individual’s salary. It’s a myth that’s out there, but it’s only a myth.”
There you have it, the most common economic slump myth when it comes to dealing with real estate agents and head hunters comes down to money. When people have to suddenly readjust there spending habits it isn’t really that surprising that this would be the most common myth.