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How Does A Real Estate Agent Get Paid?

This is my first Re-Blog because I've simply chosen to write my own material. Having said that, this is one of the very best articles I've seen on how Realtors get paid and definitely worth a Re-Blog. Tammie White certainly covers the bases on this one. Make sure you let her know how much you appreciate this writing.

Have a great day,

David

Via Tammie White Realtor® Franklin TN Homes For Sale (Benchmark Realty, LLC):

How Does A Real Estate Agent Get Paid?

This is a question that far too many real estate agents think consumers understand. Unfortunately, too often that is not the case.

Real estate agents are independent contractors which means we work on 100% commission. We do not get paid until the homes we are selling close.

Most agents work for a brokerage company such as RE/MAX, Keller Williams or Coldwell Banker but some may own their own brokerage.

My license is with Benchmark Realty LLC in Brentwood TN. I am not an employee of Benchmark. Benchmark Realty receives a portion of my commission for providing me with services I require to operate my business. However, as an independent contractor, I am free to run my business the way I want. The only caveat is I don't violate the National Association of REALTORS® Code of Ethics or Benchmark Realty company policy.

Consumers usually understand real estate agents receive a commission as a listing agent but don't understand how buyer's agents get paid. It's really quite simple.

When a home is listed, the seller agrees to pay the listing agent a commission to sell his home. That commission varies from state to state, anywhere from 5 - 10% of the sale price. That 5 - 10% is then split between the listing agent and the selling agent (buyer's agent). The seller is paying both agents from the commission agreed upon with the listing agent. Neither agent gets paid until all the requirements of the contract have been met and the home closes.

At closing, funds are deducted from the seller's proceeds to pay the two brokerage companies where the listing agent and the selling agent have their license posted.

The brokerage companies will then take their piece of the pie, which can be as much as one-third of the agent's commission. The brokerages then cut a check to the agent.

Seems simple right? But then who pays the agent to work the open house or the agent who answers my questions on the phone or who may even take me out to see a few homes? No one.

These agents are working events and showing homes in the hopes of meeting new clients. They don't get paid an hourly rate to work open houses or show properties. They hope to sell you a home and collect the commission.

Real estate agents work far more hours than buyers and sellers know to get their clients to the closing table. All of that work goes unpaid if the buyer or seller does not close on the sale of a home.

Can you imagine working 100 hours or more and then not getting paid? It happens all the time to real estate agents.

How? You ask. Mostly, because consumers don't really understand the many risks we take upon ourselves to sell homes.

For example, listing agents have a multitude of expenses to market your home. If your home doesn't sell, they may be out those funds with no chance to recoup their expenses.

Buyer's agents have even more risks than listing agents do. Do you know how many times people will use an agent to take them out to see homes and then cheat the agent out of a commission by using another agent to write the contract?

The buyer's agent is spending hours and gas money to drive prospective buyers around. Remember, he doesn't get paid until he sells a home and it closes. If the buyers decide to use someone else to write the contract, the agent who drove them around gets nothing. Not even a reimbursement for gas expense.

The next time you meet an agent at an open house who is willing to help you find a new home, remember, he doesn't get paid hourly to help you. He gets paid at the end of the transaction which means the purchase of your new home.

The same is true of listing agents. They put lots of money out front to market your home. They don't get any of that money back until your home sells and closes. If your home doesn't sell, they are out those funds.

I can't think of another business who provides this type of service without getting paid for their expenses.

P.S. If you are looking to buy or sell a home in Franklin TN, then contact Tammie White today at (615) 495-0752.

************************************************************************************

Tammie White, Realtor® in Franklin TN

Cell Phone: (615)495-0752

www.TammieWhite.com

Tammie@TammieWhite.com

This posting and the contents written here are the intellectual property and opinions of Tammie White of Benchmark Realty LLC. Providing real estate services to clients in Franklin, Brentwood, Nolensville, Thompsons Station, Spring Hill, Fairview, Leipers Fork, Nashville and the whole Middle TN area.

David Burrows

David L. Burrows, Realtor®
Classic Realty 4200 Evergreen Lane, Suite 331
Annandale, VA 22003
Serving: Gainesville VA, Haymarket and ALL of Northern Virginia
Direct: 703.859.5188
Office: 703.637.1400
Blog: David Burrows Properties
Blog: Real Estate Starting Point
Blog: Real Estate 101
Search For A Home: Virginia Online Home Search
Real Estate Website: Burrows Properties

It is always an honor to assist Home Buyers and Sellers with their Northern Virginia Real Estate needs. If you want to search the MLS for Real Estate Listings, or even become more specific with your search, such as the Fairfax MLS, utilize the valuable tools on my website. If you are looking for a Home in Gainesville Virginia; the Haymarket Homes For Sale area; Condos For Sale In Fairfax Virginia; Fairfax Homes For Sale; or a home anywhere within the Northern Virginia Real Estate area, simply click on the appropriate link. I serve ALL of the above areas throughout Northern Virginia.

Most important, Write, Phone or Text Me with any questions.

Posted by David Burrows on 02/11/2012 09:57 AM

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Originally posted at: Northern Virginia Real Estate - David Burrows Properties: How Does A Real Estate Agent Get Paid?

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A Simple Fix For This Garbage Disposal Issue

I always thought that I was the only one that had a problem with our plumbing on Christmas Day. Twice in our household we have had what I would refer to as MAJOR EVENTS.

One time is was simply the Drain and fortunately our neighbor was able to unclog it after several hours of work. However, we had some water damage.

Another time, it was the Garbage Disposal. I wish I would have known what this article that came out today tells us. Follow the link for information regarding Garbage Disposal issues.

Avoid Costly Garbage Disposal Fixes

I'm sure you agree with me, the article you've just read is a simple fix for this Garbage Disposal issue.

David Burrows

Posted by David Burrows on 02/10/2012 12:48 PM

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Originally posted at: Northern Virginia Real Estate - David Burrows Properties: A Simple Fix For This Garbage Disposal Issue

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Hylton Performing Arts 2012 Calendar

For those who live in the Manassas area of Northern Virginia, the Hylton Performing Arts Center gives a wonderful opportunity to view some great shows. The Opera House seats over 1100 people, and boasts a 100 ft state and Orchestra Pit.

This year, their are several concerts planned. Some of the entertainment will be Orchestra's from around the globe while other will be events like, "Celtic Nights: Journey of Hope". Oh yes, don't miss "Dr. Ralph Stanley and the Clinch Mountain Boys".

Simply follow the link to learn more:Hylton Performing Arts 2012 Calendar

By the way, interested in taking the family? Look for "Family Friendly Events" on the calendar.

David Burrows

Posted by David Burrows on 02/08/2012 07:39 PM

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Hylton Center in the ActiveRain Channel

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Originally posted at: Northern Virginia Real Estate - David Burrows Properties: Hylton Performing Arts 2012 Calendar

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Wolftrap - Superb Entertainment

I've written about Wolftrap in Northern Virginia before. We've talked about concerts that are 2nd to none. In fact, we've been able to enjoy concerts from Hawaii, go back in time with groups from 30-50 years ago, enjoy dinner on the ground and so much more.

For all of the die hard fans of Wolftrap, it's time to check out this year's calendar. Take a moment and take a look at all of the fun and great entertainment that is shaping up for this year, 2012. Follow the link below...

Wolftrap Calendar Of Events.

Wolftrap - Superb Entertainment

David Burrows

Posted by David Burrows on 02/06/2012 04:45 PM

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Wolftrap in the ActiveRain Channel

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Originally posted at: Northern Virginia Real Estate - David Burrows Properties: Wolftrap - Superb Entertainment

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Something I Do For ALL Of My Home Buying Clients

True Story: Yesterday, one of my Clients I recently sold a house to phoned me and stated: "David, you will never guess what happened?" I said, "I guess I'm out of guesses, what happened?" She said, "Our Hot Water Heater caught on fire and it was a good thing I was home at the time." She went on to share that their damage was truly minimal but the Hot Water Heater was finished!

Here is the GOOD News: She then thanked me for the Home Warranty I had supplied for them at their closing. She stated (and I quote), "AHS Warranty came out and replaced the Hot Water Heater and did a wonderful job!"

Thank you AHS for coming through. My clients are truly pleased and of course that makes me happy, too!

Giving a Home Warranty at close, using a variety of Home Warranty Companies is just Something I Do For All Of My Home Buying Clients. Let me say it one more time.... When you purchase a home through me or one of my Team Members, you automatically receive a Free Home Warranty at your closing.

David Burrows

Posted by David Burrows on 02/04/2012 02:08 PM

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Originally posted at: Northern Virginia Real Estate - David Burrows Properties: Something I Do For ALL Of My Home Buying Clients

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BJ's Wholesale Club In Gainesville Virginia

Gainesville Virginia has experienced wonderful growth recently when it comes to shopping. A few years ago Best Buy, Super Target, Lowes and many other stores moved in to the area. At the same time, getting around in Gainesville continues to improve with the I66/29 interchange being completed and additional road work that is taking place on Route 29 itself.

A recent addition to Gainesville had it's Grand Opening last weekend. BJ's Wholesale Club opened it's doors and saw many, many shoppers. If you haven't tried BJ's, you should. To learn more, simply point your mouse to the following link, or better yet, go and experience shopping at BJ's first hand.

BJ's Wholesale Club In Gainesville Virginia

David Burrows

Posted by David Burrows on 01/31/2012 07:03 PM

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BJ's Wholesale Club Open's It's Doors in Gainesville in the ActiveRain Channel

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Originally posted at: Northern Virginia Real Estate - David Burrows Properties: BJ's Wholesale Club In Gainesville Virginia

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Looking For Something To Do Today In Northern Virginia?

Sometimes in Mid-Winter, I am longing for something to do that is fun, enlightening, educational and most important - a welcome change from the usual wintertime activities.

One of my favorite places to go is Mount Vernon. Mount Vernon is a place where you can celebrate George Washington's birthday in February, learn about the First President's favorite breakfast and so much more. If you would like more information about cost, things to do at Mount Vernon, then go here:

George Washington's Mount Vernon Estate

If you are looking for something to do today in Northern Virginia - You've found it! It's a great history lesson for the entire family!

David Burrows

Posted by David Burrows on 01/28/2012 07:57 AM

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Three Great Shows Coming To Alexandria Virginia

I enjoy writing about Community events. I've written about Concerts, Plays, Polo, Outdoor parks, 101 Things to Do in DC and so much more.

The Little Theatre of Alexandria has three shows coming up over the next two to three months. You might want to check them out and see if it is anything you would like to see. One of the shows is called, "Heaven Can Wait" and you can go here to read about the other two.

The Little Theatre of Alexandria

Three Great Shows Coming To Alexandria Virginia

David Burrows

Posted by David Burrows on 01/24/2012 06:44 PM

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Originally posted at: Northern Virginia Real Estate - David Burrows Properties: Three Great Shows Coming To Alexandria Virginia

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Plan Ahead For Dinner On Valentine's Day

No, it isn't to early to be thinking about Valentine's Day. Valentine's Day in Northern Virginia is truly a BIG Event! Every year, I am amazed a the amount of traffic and the amount of people heading out for Valentine's Day dinner.

I came across a very interesting Website that I believe you will find helpful in not only helping you to find the right place for Valentine's Day Dinner but for assisting you in making the ALL important reservations. Follow the link below to learn more. Most important, don't be fooled by the title of the link. Northern Virginia is included in the list.

Washington DC Valentine's Day Restaurants 2012

By the way: Don't waste too much time in making a Reservation. Many Restaurants are already fully booked.

David Burrows

Posted by David Burrows on 01/21/2012 07:04 PM

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Originally posted at: Northern Virginia Real Estate - David Burrows Properties: Plan Ahead For Dinner On Valentine's Day

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One Of My Team Members Has A New Blog

Sherrie Davidson, one of the David Burrows Team Members is rather new to Real Estate and of course to my Team. I noted today, that she has created one more avenue of reaching out into the community where she lives and even the surrounding communities around her. She is doing this through a brand new blog. In fact, she just launched it minutes ago and of course will be putting some finishing touches on it in the weeks and months ahead.

If you have a moment and would like to take a look, you can go here: Linden News N Views

Yes there is a place called Linden Virginia! Thanks for taking a moment to stop by her Blogger Spot!

David Burrows

Posted by David Burrows on 01/20/2012 04:24 PM

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David Burrows

Fairfax, VA

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Classic Realty

Office Phone: (703) 859-5188

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