Thursday, September 16, 2010

Real Ideas for Real Estate Salespeople Impacted By the BP Oil Spill

Proposed Method for Calculating Income Losses
For Real Estate Agents, Brokers, Brokerages in Directly Impacted Locations

There exists irrefutable evidence that the BP oil spill disaster absolutely and directly impacted the ability of Real Estate agents, brokers and brokerages from selling properties along the gulf coast.

These agents, brokers and brokerages have historical data to prove that their incomes have been derived through sales activity on these impacted shores, yet they are to date denied the ability to receive appropriate compensation for their losses.

This is in direct conflict with the $93M advertising campaign that BP has funded stating that they will “make it right”, “make you whole”.

If these businesses are not appropriately and adequately assisted, they will perish. That will be as a result of inaction on the part of BP and now the Gulf Coast Claims Facility.

Please consider this approach to calculating lost income due to agents/brokers and brokerages:

• Compare 2008, 2009 and 2010 income.

• Determine what percentage of income is derived from real estate sales commissions.

• Establish what percentage of the real estate commissions are from property sales in DIRECTLY impacted areas.

• Use this factor to determine loss of income due to lost sales POSSIBILITY in the DIRECTLY impacted area.

If my income is 100% derived from real estate commission sales, and historically 50% of those sales were in the DI area, then it would stand to reason that 50% of the income that I would have made in 2010 would have also been derived from that area. That would mean that whatever my 2010 projected income should have been would be 50% attributable to real estate commission sales that I would have made on the DI area.

Shouldn’t I then be eligible to receive compensation for that loss based on the proportionate part of my income that is dependent on sales in that area?

Proximity, and Dependency on the Gulf – Check, Check.

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