03/15/2022
A good friend of mine posted this regarding real estate agents and I felt it was worth the share, especially in this competitive market with low inventory & multiple offers having to be made.
Iâm seeing more and more people looking towards their real estate agents to bend on their commission.
From someone that works with Realtors every day and sees what they go through, I thought Iâd share this to put that all into perspectiveâŚ
Friends, before you go and ask for a discount on the commission paid to a Realtor for helping you sell or buy 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? Would you work for free for weeks, months, and sometimes years in good faith that when the âdealâ closes youâll be compensated with no guarantee?
Another day, another person who says realtors are overpaid and an unnecessary part of a transaction. Iâm 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:
Real Estate Agents donât get to keep all the money they make on deals. You see 3% on a $200k home is $6k. Keep in mind there are many customers that agents consult Sometimes for months and years and many clients donât close or close with a different agent often because they really donât understand how it works.
That commission is paid to them:
- Before taxes
- Before broker splits
- Before marketing
- Before board dues
- Before office bills
- Before professional photographs on your home
- Before professional staging on your home
- Before all the other costs of doing business
Out of whatâs left of their checks after all this, they can then begin paying for everything else. But wait, thatâs not all!
They donât get afforded a lot of the things you enjoy at a 9-5 job.
They donât 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 their 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 whatâs left after their benefits are taken out and spoken for.
Yes, they did choose a career in real estate. Itâs a career that 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 itâs 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.
So before you tell another one of them that they make too much money and arenât really needed anymore, I encourage you to do the following...
Get your 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 your clients, and whoâs a scam.
Try and keep deals together when theyâre about to go south with critical thinking skills all while staying within legal parameters.
Educate your new homeowner clients about whatâs gonna happen after they close and what to expect in the couple of years to come.
Then listen, repeatedly, as others tell you the money youâve been paid is WAY too much and they could do what youâve done for much, much less.
Exhausting, isnât it??
