Why Do Realtors Make Such High Commission?

Reblogger TERRY DRISCOLL
Real Estate Broker/Owner with MAINE HOME REALTY Lic# BR916095

This blog post by Cathy Bureau of Green Home Realty in Texas is one of the best explanations for our compensation structure that I have ever read - so I am pleased to share!

Original content by Cathy Bureau 0548772

I was interviewed yesterday for a unique investor project by Mr. Builder. We talked about the viewpoint each of us have toward the other in terms of typical Realtor or Builder behavior. It was fun and funny. One of the things that came out of the conversation for me was an aha moment about why Realtors are commissioned based and why we get paid as much as we do per transaction. 

There are 2 kinds of people in this world. Those that hunt and kill, and those that prepare the table.  It's hard for the food preparers to understand why a hunter gets paid $5,000, $10,000, or more for a single transaction. Mr. Builder told me, "Cathy, when I had a team of marketing people I heard them complain that Realtors make too much money and that they missed something on a contract. They would get pretty darn upset over a small oversight. One day I told my marketing staff, no more complaining. You wouldn't have a job if those Realtors didn't bring you any contracts to review. Any of you are welcome to cross over into the sales side, but you need to understand my expectations."

  • Work 6 days a week, and be on call for the 7th.
  • If you are off, dress nice anyway because you may get called into work.
  • No salary. Straight commission. Eat what you kill.
  • If you go on vacation, check in once a day on pending contracts.
  • You may work 50 hours this week and not make a penny.
  • We're only closed on Christmas Day. If you get a call during your Thanksgiving meal to see a house, even if you are the host, drop what you're doing to show the house.
  • If you don't make any sales in 60 days go look for another job.

Are there any takers?

What many consumers don't understand about Realtors is that we take on a huge risk of not getting paid, even if the buyer buys a house. We can list a house and then something terrible happens at the end that is out of our control, so we don't get paid. Sometimes it looks easy, but most times isn't. There is the law of averages that makes the difficult easier to absorb; so we appreciate the easy. We aren't employees - we are at the whim of the consumer for the most part. Sometimes we make tough choices that we don't tell our clients about - giving up our kids' baseball games, missing out on family parties and celebrations. Its part of the job as a fiduciary to our clients.  It's not just about putting a sign in the yard or entering data into MLS. It's about risk and reward.  Thanks Mr. Builder for understanding the difficult nature of our job. It's not all fun and games.

Risk = Reward

 

 

 

DON'T BE A DINOSAUR! LOVE THE EARTH!

 

SunAgent CertifiedCathy Bureau, NAR GREEN, EcoBroker, recently obtained the SunAgent certification being test marketed out of New Jersey for real estate solar education. As the founder of Green Home Realty, Cathy Bureau is an entrepreneur recognized in the industry by builders and colleagues for her expertise in green real estate. She is a member of Build San Antonio Green and the Texas Green Network-SA. You can find her via website: GreenHomeRealtySA.com, blogs:  SanAntonioHomesBlog.info, Facebook, Twitter, LinkedIn, Pinterest, and Natural Awakenings SA Magazine Please contact her directly to schedule her as a guest speaker or for media interviews for your company events.


CATHY BUREAU - YOUR MOST VALUABLE REAL ESTATE ASSET


I Love the Earth

CATHY BUREAU Broker/Owner

MBA, REALTOR, GREEN, SFR, ECOBROKER, SUNAGENT

(210) 560-1891 Direct

www.GreenHomeRealtySA.com

I would LOVE to HELP YOU buy or sell in the San Antonio-Austin area. Please call me, CATHY BUREAU GREEN Home Realty (210) 560-1891. 

Did you enjoy reading my blog? Then follow me here:

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OTHER GREAT BLOGS THAT YOU MAY HAVE MISSED:

Not ALL Realtors are the Same

The San Antonio River Walk - Everything You Ever Wanted to Know

New Homes in San Antonio, Texas - How to Choose a Builder

San Antonio Home Buying Made Easy

Rent Versus Buy - The Real Cost of Renting!

This is to advise you that you are using copyrighted and protected material on your website/blog. Your illegal use of any articles derived by Cathy Bureau or Green Home Realty. This is original content and I am the author and copyright holder. Use of copyright protected material without permission is illegal under copyright laws. You may print one copy for your own records not to be distributed without specific written permission. You may re-write the post to include excerpts with a link to the original content. You must credit the material specifically to me, as author, and my website.

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Rainmaker
366,662
Cathy Bureau
www.GreenHomeRealty.com - Alamo Heights, TX
Your Personal Real Estate Concierge

Terry, that's a very fine commentary. Thank you for your kind words and re-blog.

May 02, 2012 08:20 AM #1
Rainmaker
944,767
Joyce Kelley
Charles Stallions Real Estate Services Inc - Gulf Breeze, FL
Buyers Agent 800-309-3414 Pace and Gulf Breeze,Fl.

I work 4 days a week run a buyer team of six and I would never work as hard as the person you describe.

May 11, 2012 06:09 PM #2
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Rainmaker
109,590

TERRY DRISCOLL

REALTOR - Get the Attention You Deserve!
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