03/23/2024
SUPPORT YOUR REALTOR®!
There is a lot of talk in the news about real estate agent commissions (not approved by the Courts yet!) Know that most of them LOVE what they do and they do it because they LOVE helping people, but there is almost always a huge misconception on what they do and how they get paid. It's not a secret, so here ya go...😊
The average FULL TIME REALTOR’s earnings last year was $31,900 @ 40+ hours a week. (Notice I wrote 40+ hours, not 0-20 hours a week), which is well below the living wage. As a REALTOR, they do not get paid a hourly wage or salary and they only get paid IF they sell a home AND it closes. They can only get paid via a Broker-to-Broker Agreement. They often end up working with someone for days, weeks, months, or even years, with no guarantee of a sale EVER!
Essentially, they wake up each day unemployed going on Job Interviews and they deal with constant rejection. They dedicate time away from family, use their time, gas, pay for babysitters, miss dinner and weekends, and rarely take the real kind of vacations (the uninterrupted kind!) They are ON 24/7! They constantly need to be on, or they could miss an opportunity. Once they do close a home, half goes to the other person’s agent from the remaining half. They have lots of upfront expenses that must be paid out before they even get paid:
Broker Splits and Fees
Office rent and utilities
MLS Fees
NAR Fees
Local Association Fees
E&O Business Insurance
Extended Auto Insurance
Self-Employment Tax
State Licensing Fees
Advertising Fees
Showing Service Fees
Website Fees
Assistant's Salaries
Showing partners
Transaction coordinator
Yard Signs
Photographers
Videographers
Office Supplies
Business Cards
Property Flyers
Electronic Lockboxes
Continued RE Education
Legal Fees
Gas
Income taxes are not taken out so they have to put that aside around 25-30%.
Don’t forget health insurance (if they don’t have a spouse who provides it)
✨You don't need to buy or sell a home to support your agent’s real estate business – here are just a few simple ways to show your support: share one of their listings, send a friend or family member their way, let them connect you with agents outside their area for a broker-to-broker referral, or leave them a positive comment or review. This helps them feel seen and supported - (thanks to you)! ❤️✨
(A subsequent post will detail what ALL Realtors do, depending on whether they work with a Buyer or a Seller. Stay tuned!)
