Understanding your broker/agent's role and your role as a buyer or seller is crucial in any transaction.
Before you go and ask for a discount on your commission from a Realtor for helping you sell your home, please understand what you're truly asking for them to do...and ask yourself this question: If your boss came to you and asked you to work overtime, but wasn't going to compensate you for doing so, would you still do it?
Another day, another person who says realtors are overpaid and an unnecessary part of a transaction. I’m assuming that those who think this have either been watching too much Million Dollar Listing or think they know how to do it all on their own.
A few things to consider:
There is no salary in their job. No guaranteed income for them until the home actually sells. If it doesn’t go through for any reason, all of hours and time spent helping you and your loved ones go without any compensation for the time spent. You see 3% on a $200k home as $6k. The agents sure don’t.
That commission is paid to them (typically by the seller):
- Before taxes
- Before broker fee splits
- Before marketing
- Before board dues
- Before office bills/expenses
- Before professional photographs on your home
- Before professional staging on your home
- Before all the other costs of doing business
Out of what’s left of their checks after all this, they can then begin paying for everything else. But wait, that’s not all!
They don’t get afforded a lot of the things you enjoy at a 9-5 job.They don’t receive:
- Employer healthcare
- Employee matched retirement accounts
- Paid vacations
- Weekends off
- Nights off
- Maternity leave
- Bereavement pay/leave
- Company car
They pay for all of this out of our own pockets. Every single penny.
Yes, there are some realtors married to people working company jobs who receive some of these benefits. But the vast majority of real estate agents, they support their families on what’s left after their benefits are taken out and spoken for.
Yes, they did choose to sell real estate. It’s a career which they love and it allows virtually uncapped growth and income potential. But they also have to often be available at any time of the day when needed. Whether it’s showing homes at 7pm, writing offers at 11 pm or doing final walkthroughs at 6am. They are there, available to help their clients when they are needed. (I know of several who have had client emergencies on Christmas, Easter, Thanksgiving, etc and had to work on those days!)
So before you tell another one of them that they make too much money and aren’t really needed anymore, I encourage you to do the following..
Get your own real estate license, start lead generating on your own, find clients who like you and trust you to help them with the BIGGEST purchase of their lives.
Make sure you know not only what goes in the blanks of the contracts, but also what the promulgated parts of them say. Learn the legal steps of what happens once you write a contract, and what business partners are a good fit to help you and your clients and who’s a scam.
Try and keep deals together when they’re about to go south with critical thinking skills all while staying within legal parameters.
Educate your new homeowner clients about what’s going to happen after they close and what to expect in the years to come.
Then listen, repeatedly, as others tell you the money you’ve been paid is WAY too much and they could do what you’ve done for much, much less.
Exhausting, isn’t it?
(Credit to Sue Botelho for taking the time to write this, thank you!)
For Erin Waldron, at Property Dynamics, LLC, this is a labor of love, and one that will always be.
If you’re thinking of buying or selling, now is the time to have a heart-to-heart conversation with a real estate professional in your market, as things are about to change in an unexpected way.
Real Estate Professionals
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