You don’t know how I get paid.11th December 2020
Now I know that some of you understand real estate and how Realtors function in buying and selling homes. But there are many of you who do NOT know much at all about how this whole thing works. I don’t blame you, it’s not your job to know, it’s mine.
Why does it matter whether or not you know how we get paid? In fact, it actually uncovers quite a bit about the relationship between realtor and buyer or seller.
As a representative of our Clients we work on their behalf to do what is in their best interest leveraging our skills and abilities. That means, when we work with sellers, we do everything we can to help our clients get their homes sold for as much as possible based on their time and budgetary restrictions.
When we work with buyers we are clear to let them know we can show them ANY listed property and help them through the entire purchasing process to then put the property in their name.
Through all of these processes our goal is just like our clients: To make it to the finish.
Which brings me to the topic of this blog, how we get paid. If you don’t know this already Realtors are 100% commission based. I know it may seem like I work for my broker but I am in fact an independent contractor of my international real estate firm. Well in all actuality I own a real estate company and I am employed by that real estate company that has an independent contractor relationship with my real estate firm, but that kind of puts us in the weeds of unnecessary details.
But the bottom line is, if we don’t help our clients, buyers or sellers, get to the finish, a.k.a. close, we don’t get paid.
Commission structures are as such. Sellers pay, typically a flat percentage, to their listing agent and to the buyers agent who brings a buyer. Only when the home is SOLD.
That means I could be with a Client, or you could be with an agent, for months or even years before they see a nickel. Some clients will search for a home for months and months and then decide that homebuying is not right for them. I once worked with Client for an extended period of time and showed them 72 properties and they decided to rent. Ouch, that was a tough one. On the other hand I have worked with buyers who were very happy to purchase the very first home they have seen. Nothing wrong with that.
But the real takeaway is to understand that we are in it to ensure that you get to the finish, whatever yours might be. Also, the relationship that we have with our Clients is NOT one in which would also include additional Realtors. That may seem confusing because of course we would help you purchase a home and negotiate with another Realtor. But the point I’m trying to make is when you work with one Realtor that’s it. You shouldn’t be calling up another one or go on multiple showings with different Realtors. The only reason why you should be with more than one Realtor is because you’re firing the previous one because they didn’t do a good job.
Find a good one, build a relationship and commit. We will do the same, with you!