A REALTOR® is a professional who knows the real estate market in a specific area, has experience in buying and selling homes and is versed in all the intricacies of the process.
You probably have seen those HGTV shows where the real estate agent shows three homes to a buying couple they decide on One and then Voila! they bought a house. Wouldn’t that be nice!
If you have a friend or are related to a REALTOR® YOU KNOW how hard this profession could be.
I remember coming into the real estate profession because I love homes (I am a licensed Architect) plus I love working with people. I thought, well I do know the Product (house) very well, so what else do I need to know Right? – Wrong!
We work really hard to achieve our clients goals (whether it is buying or selling a home), only 20% of us succeed, not too many realtors continue in this profession after a year, with some deciding to do this as “side job”. You will be amazed but the average REALTOR® only makes around $40,000 a YEAR !!! Yes, that is right, that is why so many quit. You have to constantly keep up with the new trends, marketing trends, regulations, classes, market news, competition and demands of the job, it could not only be exhausting but nerve racking as well.
Remember we do not rely on a salary, a paycheck that will pay our monthly bills. We work extremely hard for days and months with one client doing our best to give them all the information and guide them through the process making it look as seamless as possible without really knowing we will actually get paid until it ends. We are more like the small business coffee shop owner, that opens his/her doors every day but does not know if someone will show up to have coffee in the shop. We love to give advice and share our knowledge and we will go as far as to advice you into not selling a house if that is not the right moment for you. So please remember to go back and engage that realtor that gave you her honest opinion when you are ready to sell, and let her know you get it and are thankful. You will make us Happy
Patricia Harris was a true professional
Watch Video, list of some of the things REALTORs Do
Being a REALTOR® could be Exhausting!
You saw the list above! Can you imagine doing that while having several clients! Being a Realtor is not easy, many are under the assumption it is glamorous may be because of those million dollar shows. And very few probably do live like that, but for the rest of us, we work very hard to help our clients and stay in business. We love what we do and that is the main reason we continue to do so.
Being a REALTOR® is very Expensive!
We have to pay out of pocket a lot of expenses and remember we do not know if we will get paid, talk about pressure! Some of those expenses are:
- Brokers Fees
- MLS Fees
- Errors and Omissions insurance
- Technology fees
- Continuing education classes
- Licensing Fees
- Added self-employment tax
- Auto Insurance, extended
- Own health insurance
- Professional Photographers
- Yard Signs
- Showing service fees
- Business Cards
- Electronic Lockboxes
- Assistant salary
- Website fees
So How do REALTORS then get compensated
The large check you see on your settlement sheet gets split usually in half, with one-half going to the agent that represented the Buyer and the other half going to the agent that represented the Seller.
That Half (either the buyer’s agent or the seller’s agent) will need to split that with their own Brokerage firm. The percentages vary from Broker to Broker and it will depend also on your volume as well.
As an Agent then you only see basically that piece, but from that you will have to deduct a very Large Portion for Taxes (we are self employed) and All the fees listed above.
So, basically we are left with just a portion of it to live our lives just like you