Commission splits, Where does the money go?
Realtors, When you do a listing presentation do you EDUCATE your sellers on where the commission goes? or do you explain to a new buyer you work with how you make your money? If you don't EDUCATE your buyers and sellers how your commission is split how will they ever know that you don't get to keep the enitre commission. I have made a powerpoint illustration to educate my buyers and sellers how I make my money. You can email me and I will send you this illustration in a powerpoint slide so you can tweek it for your own use... Just let me know you would like it and I would be happy to send it to you to start educating your buyers and sellers about how Realtors EARN thier commissions!
This illustration shows that the commission is split between 4 people
- The Listing Agent who takes the listing does a lot of work and pay a lot of fees to be a Realtor
- The Buyers Agent who helps the buyer find the house makes sure the buyer is qualified to buy the home and guides the buyer through the buying process.
- The Buyers brokers
- The Listing Broker
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Very good post, Coni, and very well put. They really don't understand what all we do to accomplish getting the job done for them, or how little of that commission we actually get.
Don't forget that many of us who work with large franchises have the franchise fee taken right off the top of our share - in my case, for example, it brings my share down by almost 1/10 of a percent on an average sale, so instead of getting 1.5 - 2%, I actually get only 1.4 - 1.9% depending on whether I am the buyer's agent or the seller's agent and whether it is a 6% or 7% commission fee. And that, of course, is my gross, before taxes, expenses, fees, dues, overhead, etc. If they only knew...