How do Realtors get paid?

By
Real Estate Agent with Rector Hayden Realtors

AS A CONSUMER IN THE REAL ESTATE MARKET, YOU WILL BENEFIT FROM THE SERVICES OF AN EXPERIENCED REALTOR THROUGHOUT THE HOME BUYING OR SELLING PROCESS. BUT EVEN THOUGH YOU MAY NOT BE FOOTING THE BILL, IT'S IMPORTANT THAT YOU UNDERSTAND HOW REAL ESTATE AGENTS ARE PAID.

DID YOU KNOW.....

  • Sales associates are self-employed, and receive no salary or benefits. They get no paid vacation time, insurance, company cars or expense accounts from the firm they work with.
  • Sales associates are only paid for results - if and when they successfully complete a property transaction.
  • Most sales associates are paid the same whether a buyer purchases a home listed by their broker or another company broker.
  • As independent contractors, sales associates have ongoing out-of-pocket expenses similar to those of any small business.

BUSINESS EXPENSES:

  • Property Advertising
  • Advertising and marketing of their services
  • Marketing materials and direct mail
  • For sale sign deposit
  • Lock boxes, open house signs
  • Total inventory marketing fee
  • MLS access fees
  • Computer hardware and software
  • Long distance, cellular and/or paging service
  • Postage and courier fees
  • Business cards, stationery, office supplies
  • Business insurance, self-employment tax
  • Continuing education courses
  • Personal assistant (salary, taxes)
  • Fuel costs, maintenance and mileage on vehicles
  • And, some pay monthly office rent

So when you consider a real estate agent to help you when buying or selling a house please understand that it costs them considerably to work with you whether they end up closing a transaction with you or not.

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Topic:
ActiveRain Community
Location:
Kentucky
Tags:
real estate
real estate agent
realtor
commission
home buyers
firsttime home buyers

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Rainer
33,760
Jennifer Hartwick
Coldwell Banker Tatie Payne, Inc. - Columbia, MO

Many people that I work with don't realize that I pay the expense for the flyers in the box and their ads in the paper.  ' my job!

Mar 04, 2009 12:18 AM #1
Anonymous
Shari Crisp

You are right they don't have a clue that most sales agents in Real Estate pay for EVERYTHING!

That's why I decided to post this, maybe a few people will read it and change the way they think about Realtors.  We are really service oriented people not just sales agents and it costs us money wheter we sell a house or not!

Thanks for responding.

Mar 04, 2009 11:48 AM #2
Rainmaker
206,029
Erby Crofutt
B4 U Close Home Inspections&Radon Testing (www.b4uclose.com) - Lexington, KY
The Central Kentucky Home Inspector, Lexington KY

Did you move your blog.

Jan 20, 2010 04:39 AM #3
Anonymous
Shari

I don't think so why? I also have one on my personal website www.sharicrisprealestate.com

 

Jan 20, 2010 10:51 AM #4
Rainmaker
206,029
Erby Crofutt
B4 U Close Home Inspections&Radon Testing (www.b4uclose.com) - Lexington, KY
The Central Kentucky Home Inspector, Lexington KY

Just hadn't seen you around in the Rain (or real life) in quite awhile and noticed your last post here was March of last year.

I hope all is well in your world.

 

-

Jan 26, 2010 07:09 AM #5
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Rainer
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Shari Crisp

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