I was looking on one of the web sites where people can post questions.
A seller was commenting that his agent told him what the commission was and that it was needed to cover advertising cost. The seller stated that a lot of web sites are free and that signs flyer's and so forth did not cost much. He just could not see the cost.
This is my answer to his comment.
Do you know how much time it takes to get the listing on all the free sites?
How much a website cost?
How much to advertise in the Real Estate Book each month?
How much the MLS Fees are each month?
How much the broker keeps?
How much the office rent is?
The cost to replace stolen and damaged signs?
The cost of driving buyers all over the place?
The cost of Franchise and desk fees?
The cost of being a member of the local board of Realtors?
The cost of newspaper ads?
You say Fliers don't cost much try printing 50 color fliers each for 20 listings. I Bet you will be surprised.
How much time is spent on listings that do not sell and with buyers who back out? All that time and money generates $0. How many hours do you work for $0?
How much is E&O insurance?
How much extra is the auto insurance because you drive clients around?
The cost of keeping a nice clean car to do business in?
The cost of virtual tours?
The cost of contact management?
Most of the time 1/2 of the commission goes to the selling agent side of the deal.
The list goes on.
I think Realtors(including me) need to do a better job showing the publicall that goes into a real estate business. Our clients deserve the best service and deserve to know what they are paying for. We as Realtors owe it to them to see that they get there moneys worth!
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