What is a realtor, who is a realtor and what do they do for me?
Better question to ask is; who is the cashier at the local retail store, or who is the IT geek that fixes the computer or network for you at work. Who is the lawyer that is representing you in court?
All of them are people you trust to do something for you because they are trained to take care of you in a particular situation. You may be one of these people, as a matter of fact you are if you have a 9-5 job that requires you to answer to a “Boss” or “Manager”.
In your daily job you probably receive several benefits, health care, 401k, paid vacation time, sick time, among others, and you are probably paid a salary or an hourly wage. You depend on that salary or hourly wage to help you pay your mortgage, bills, car loan, buy groceries.
These people are an expert in their field no matter what that field is.
Real Estate Expert
A realtor is an expert in their field too.
Before you ask your realtor to discount or reduce their commission, please think about what you are asking them to do, then ask yourself this question: If your boss came to you and asked you to work overtime, but wait he/she doesn’t want to pay you for that overtime work. What would you do?
Where Does Our Money Go
If you are one of those people who think realtors are overpaid and unnecessary to the sale or purchase of property(home). There are several things to consider:
Realtors don’t keep all the money from their commission check for themselves. A commission is paid to a realtor:
– Before taxes
– Before broker splits (what they owe to the brokerage they work under)
– Before marketing
– Before board dues
– Before office bills (think desk in the office)
– Before all the other costs of doing business
The remainder of our commission is used to pay:
– Retirement accounts
– Vehicle maintenance
Realtors also have the same bills that you do:
We don’t receive employer benefits such as:
– Weekends off
– Nights off
– Maternity leave
– Bereavement pay/leave
We pay for everything. There are some realtors whose spouses work for companies that provide benefits to the employee and their family, but the vast majority of realtors support their families with their commission checks only.
Our Chosen Profession
Yes, this is a chosen profession and yes it can be a profitable career, but it takes hard work and a lot of time. Most of the time is consumed on nights and weekends and our days are consumed with research into properties that fit our clients wants and needs. Most realtors work hours that the “normal” employee would refuse to work.
So, before anyone tells a realtor that they make too much money and aren’t really needed anymore, I encourage you to consider getting your real estate license, work on lead generation, find clients and convince them to trust you. Then don’t just fill out a contract, anyone can fill in the blanks, but it takes a trained and committed real estate agent to understand what the words in a contract mean and how to explain them to your clients. You also need to understand the contract in order to ensure you don’t cause more problems for your clients during the purchase process, the wrong date or a decimal point out of place can mean big problems during the process.
Additionally, realtors also act as your negotiator to get you the best possible deal and to keep that deal in place when problems arise, and they do this while staying within the legal parameters set out by the real estate commission. Realtors also educate their clients about what will happen after they close and, in the years, to come. Realtors will and do receive calls from past clients years later seeking advice on their home months even years after the purchase date, a good realtor will be there for their clients in these situations.
If you still believe realtors are unnecessary to sell or buy a home then try it one time on your own, you will find that the process with be dramatically protracted and you will become frustrated with having to repeat steps.
There are very good realtors out there and there are very bad realtors out there. If you have ever experienced the bad realtor, then you need to call me. Even if you aren’t buying or selling a home I will do everything I can to reassure you that the good realtors do exist and that we truly do want to help you through the process and aren’t just in it for the money.