Being a REALTOR®- Educational Information for Clients and the Public
On the discussion of being a REALTOR® and commissions. So much misinformation I’ve been reading in the news. So much that is not fully understood. One of the problems is that many of us don’t do a good job of informing our clients about what the job actually entails and how hard we fight for them. Here is what we bring to the table: The "average" FULL TIME REALTOR’S® earnings last year was $31,900 @ 40+ hours a week. (Notice I wrote full time 40+ hours not 0-20 hours a week) which is well below the living wage. As a REALTOR® they do not get paid a hourly wage or salary and they only get paid if they sell a home and it closes. They can only get paid by broker to broker. As an agent you could work with someone days, weeks, months, or years with no guarantee of a sale ever! Essentially they wake up each day unemployed going on Job Interviews and they deal with constant rejection. They dedicate time away from family, use our time, gas, pay for babysitters, miss dinner and weekends and rarely take vacations. They are on 24/7! You constantly need to be on, or you could miss an opportunity. Once they do close a home, half goes to the other persons agent from the remaining half. They have lots of upfront expenses that must be paid out BEFORE they even get paid: Broker Splits and Fees Office rent and utilities MLS Fees NAR Fees Local Association Fees E&O Business Insurance Extended Auto Insurance Self-Employment Tax State Licensing Fees Advertising Fees Showing Service Fees Website Fees Assistant's Salaries Showing partners Transaction coordinator Yard Signs Photographers Videographers Office Supplies Business Cards Property Flyers Electronic Lockboxes Continued RE Education Legal Fees Gas NOTE: Income taxes are not taken out so they have to put that aside around 25-30%. Don’t forget health insurance if you don’t have a spouse who provides it. As a listing agent they have lots of tasks far more than just selling a home. 1. Prepare Listing Presentation for Sellers