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.
This is exactly what I have predicted all year. If you are on the fence about selling, don't wait. Now is the time to get top dollar for your property. #MoveForward #PropertyDynamics
Real Estate Professionals
keepingcurrentmatters.com - Home Sales About To Surge? We May See a Winter Like Never Before.
Like most industries, residential real estate has a seasonality to it. For example, toy stores sell more toys in October, November, and December than they do in any other three-month span throughout the year. More cars are sold in the U.S. during the second quarter (April, May, and June) than in any other quarter of the year.
Real estate is very similar. The number of homes sold in the spring is almost always much greater than at any other time of the year. It’s even labeled as the spring buying season. Historically, the number of buyers and listings for sale significantly increase in the spring and remains strong throughout the summer. Once fall sets in, the number of buyers and sellers typically drops off.
Last year, however, that seasonality didn’t happen. The outbreak of the virus and subsequent slowing of the economy limited sales during the spring market. These sales were pushed back later in the year, and last fall and winter saw a dramatic increase in home sales over previous years. The only thing that held the market back was the extremely limited supply of homes for sale.
What About This Winter?
Some experts thought we’d return to the industry’s normal seasonality this winter with both the number of purchasers and houses available for sale falling off. However, data now shows that neither of those situations will likely occur. Buyer demand is still extremely strong, and it appears we may soon see a somewhat uncharacteristic increase in the number of homes coming to the market.
Buyer Demand Remains Strong
The latest Showing Index from ShowingTime, which tracks the average number of monthly showings on available homes, indicates buyer activity was slightly lower than at the same time last year but much higher than any of the three previous years (see chart below):
Home Sales About To Surge? We May See a Winter Like Never Before. | Keeping Current Matters
A report from realtor.com confirms buying activity remains strong in the existing home sales market:
“New housing data shows 2021’s feverish home sales pace broke a yearly record in October, . . . with last month marking the eighth straight month of buyers snatching up homes more quickly than the fastest pace in previous years. . . .”
Buyer activity for newly constructed homes is also very strong. Ali Wolf, Chief Economist for Zonda, recently reported that Stuart Miller, the Executive Chairman of Lennar, one of the nation’s largest home builders, said this about demand:
“There is still a great deal of demand at our sales centers with people lining up and not enough supply.”
The only question heading into this winter is whether the number of listings available could come close to meeting this buyer demand. We may have just received the answer to that question. Sellers Are About To List – Right Now
Instead of waiting for the normal spring buying market, new research indicates that homeowners thinking about selling are about to put their homes on the market this winter.
Speaking to the release of a report on this recent research, George Ratiu, Manager of Economic Research for realtor.com, said:
“The pandemic has delayed plans for many Americans, and homeowners looking to move on to the next stage of life are no exception. Recent survey data suggests the majority of prospective sellers are actively preparing to enter the market this winter.”
Here are some highlights in the report:
Of homeowners planning to enter the market in the next year:
65% – Have just listed (19%) or plan to list this winter
93% – Have already taken steps toward listing their home, including working with an agent (28%)
36% – Have researched the value of their home and others in their neighborhood
36% – Have started making repairs or decluttering
The report also discusses the reasons sellers want to move:
33% – Have realized they want different home features
37% – Say their home no longer meets their family’s needs
32% – Want to move closer to friends and family
23% – Are looking for a home office
Data shows buyer demand remains unusually strong going into this winter. Research indicates the supply of inventory is about to increase. This could be a winter real estate market like never before. Bottom Line
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.
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