The topic of rising fuel costs was fresh on Chase Duran‘s mind going into the weekend as he pulled away from a gas pump.
“It’s impacting some agents for sure, especially those who are starting out and don’t have a lot of income yet,” said Duran, an agent based out of an Ebby Halliday office in Frisco.
For real estate agents who are constantly on the road, showing homes and meeting clients, the costs can take a toll. The national average cost for a gallon of gas is nearing $5 a gallon in North Texas, according to the American Automobile Association (AAA).
The increase is causing agents to reconsider everything from what homes to show, and how often, to everyday errands and other costs of doing business.
A survey of National Association of Realtors members found agents drove a collective 3.6 billion miles in 2011 or an average of about 3,300 miles each year for business-related driving.
Duran groups his clients to catch as many as possible in one trip. With clients in Prosper, Uptown, Dallas, and other cities, he fills his tank either once a week or every other week.
“It hasn’t changed how I do things,” he said. “Since we’re self-employed, we have to kind of strategize. “If I have clients in Fort Worth, I’ll show them homes in one day, then I’ll get back home, recoup, and show in Dallas another day.”
Duran said agents are having to get a second job or get out of the real estate business.
But it’s also the customers who face challenges with higher fuel costs, he said.
“Because of COVID, not everyone is riding with the agent — they’re following the Realtor to another home,” Duran said. “They’re having to spend, too.”
Seth Fowler, an agent with Williams Trew Real Estate in Fort Worth, covers a lot of ground. Through the week, he did business in Granbury, Decatur, and Mansfield.
In May 2022, he spent $485 and averaged $60.66 per fill-up. In May 2021, he spent $250 and averaged $35.78.
“I fill up once a week pretty much at $70 per, and that’s about 350 miles,” he said. “[You] have to do whatever it takes — [it’s] not like I cannot show homes.”
Andrea Stone, an agent with eXp Realty in North Texas, said she hasn’t changed anything because of gas prices.
“I’ve changed my personal life, but my business life hasn’t changed,” she said. “It really depends on how many buyers versus sellers.”
Some weeks, she’s showing homes. Some weeks, she’s doing paperwork.
She said a change in brokerage firms helped her attend meetings and training virtually, which was a switch from her previous job. Now, her interaction is done with an avatar who does business on a virtual beach.
“I don’t have any of that driving to the office,” she said.
Stone is holding out hope that mileage reimbursement via her taxes will ease some of the fuel costs.
“I’m hoping they give us more of a write-off on our taxes,” she said.
AAA data found that 59 percent of Americans said they’d make lifestyle changes once gas prices top $4 per gallon. At $5 a gallon, 75 percent said they’d make changes.
Pogir Pogir, Global Real Estate Advisor for Briggs Freeman Sotheby’s, said it was a matter of control. He can’t affect gas prices and it builds it into the cost of doing business.
“You gotta spend the money to make money,” Pogir said. “I drive anywhere I have to go. I worry more about meeting people.”
