This is an excellent post by Cindy Westfall and goes right along with my series of Benefits of Working with a Real Estate Agent.
There are those who think Realtors® make a ton of money. Afterall, that's why some people get into the business, then.... get out. They don't realize it's very much like beginning a new business. It may take time (months or years) before you make a profit at all. many times, they only see the big amount on the settlement statement. Plus, for many, there are thousands of dollars in expenses.
How about the hours? It isn't exactly a 9 - 5 job. I'm not going to do this but, if you took your pay and divided it by number of hours... it could be quite scary.
You do have to ask yourself, why you do what you do. For me, I like helping people and this is how I do it.
It still amazes me that in today's world where basically everything can be found online, there are still SO many misconseptions about how REALTORS® work and get paid. Here is a my Top 5 Myths of REALTORS®
Top 5 Myths of REALTORS®
Myth #1: We make LOADS of money..are dripping in it, go to bed everynight laying on sheets made of $1,000 bills.
Fact: The average commissioned salery for a REALTOR® runs from $20,226. -$74,922. This is gross salary. Out of that money, we need to pay taxes (estimate 40%).
Myth #2: We get ALL of the commission amount.
Fact: Whatever the commission amount agreed upon with the Seller gets split several ways. Out of the total percentage, an agent typically makes half of it as the other half is offered to the co-op agent that brings in the buyer as agreed upon in the local MLS system. Depending on your agreement with your Broker, they get a split off of your half WHEN the property closes. If this was a referral from another agent, or a Relocation company, they are given 25-35% of your spit off the top before your Broker get their part.
Myth #3: We get paid a salary and the commission part is on top of that.
Fact: Most of us are independant contractors that hang our license with a Broker (Mine is Prudential NW Peoperties). We don't get paid anything..nada, zip..nothing until the property closes. In fact, we lay out all expenses up front, marketing, gas, and most importantly our TIME without any guarantee that we will get paid. Yep, all those days driving buyers around, sometimes feeding lunches, time spend on the computer looking up properties, setting up showings, calling the lender, title companies, meeting contractors at the properties...all of this we do without ANY guarantee we will get paid. Crazy right??? Not many people would be happy if their boss asked them to do a months work without getting paid..yet ours is still one of the only professions that works this way.
Myth #4: Our Brokers pay for our cars, and many of our expenses.
Fact: Ha...this one cracks me up..I WISH! No, they don't pay for our car. Since most of us are in our cars quite a lot (so in a sense our office) we like to drive nice cars. We also like to have our clients comfortable when we are driving them around as well. I once had a nice smaller sport model. It wasn't too funny when a 6'4 client had to squeeze into the front passenger seat..not good, but oh.. I loved that car, but back to the point here..we pay for our own cars, leases and all the expenses of their upkeep.
As for them paying for our expenses...no again. In fact we have to pay them to use the office, many offices have a montly fee for coffee service..so this too and for those color copy fliers..yep, we pay for them as well.
Myth #5: We are too busy to be bothered with your questions or new business so you don't want to bother us.
Fact: I can't speak for every agent, but I can say that most of us are never too busy to take your calls, answer questions about anything real estate related, refer contractors or take on a new listing or buyer. This is what we do, what we love to do. I LOVE it when I get calls from friends or past clients asking for numbers, market stats or to refer me business.
I know there are a few more myths and misconceptions out there, but for me these are the top 5 I hear often. Most of us love what we do, which is why we're still here. Even though we are "sales people", most of us aren't here to "sell" you. We are in it because we sincerely love to help our clients through something that is not only a personal thing, but a big financial one as well.
Prudential Northwest Properties
5 Centerpointe Dr., Ste 150, Lake Oswego OR, 97035
Disclaimer: As an independent contractor
of Prudential NW Properties, the views of my blog
are my own, and not of Prudential NW Properties.
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