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How real estate agents pay the bills

I've been getting a lot of questions lately about how I get paid and who foots the bill. It never occurred to me that it was an area of confusion, and since it seems like it makes people a little uncomfortable to ask, I thought I'd just go ahead and straighten the issue out.

When a homeowner lists their property for sale with a real estate company, they agree to pay a certain percentage of the sale price as commission. This commission money is taken out of the seller's profit at closing and divided between the seller's and buyer's agents. The agents only get paid if and when a house is sold.

If you are shopping for a house, it doesn't cost you anything to use a real estate agent. If you are selling a house, you only have to pay the commission if the agent sells your home.

It sure seems like a good deal to me. We get paid based on our performance. It gives us a whole lot of reason to do a really good job for you and make sure you get exactly what you want.

Just imagine if mechanics only charged when they fixed your problem and if attorneys only charged when they won your case. What if doctors only charged you when they made you healthy, or if your dietician didn't get paid unless you lost weight... it'd be awful nice, wouldn't it?

Posted by Brittany Murphy on 03/28/2010 04:49 AM

Comments (139)

Originally posted at: Sweet Home Bedford, Indiana: How real estate agents pay the bills

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139 Comments on How real estate agents pay the bills

MAR

2010

Yet, there is always that movement in our business that wants to sell our services on a piecemeal basis, one task at a time with a charge for each task.

I don't believe that the home buying or selling public will accept the "fee for service" unless every broker in a town adopted that same system.

Contingency fees are not only "performance based", they are appreciated by the consumer.

Imagine your attorney, when after working with you a couple months, you decide to flip and work with another attorney. You thank him for his efforts but will be only paying the second one. That should go nicely.

You would not beleive how many folks do not know this information... They think by having a buyers agent they are losing out on something and may have to pay!

I have always said that if the whole world worked on commission, things would get done faster. The thing is we don't get paid unless we do our job right!!!

Good post, very well explained for those that did not know.

We can do the job right and still not get paid. I have one tht I sold twice last year and for some unfathonable reason I listed it again this year. My sellers are sensative to the fact that I not only did my job but I did it twice and didn't make a dime.

Good explanation however I disagree with "This commission money is taken out of the seller's profit at closing" it is coming out of the sellers proceeds at the closing.

Sometimes it is coming out of the sellers pocket. Or the banks pockets and it is hard to pry that out sometimes.

I'd like to add, what if stock brokers only made money when they increase your money!!

Ditto Maureen * "profit" is too subjective and may be misleading...the PROCEED$ is a better term for the origin of the $$$

It's not surprising that the consumer may not understand this. Why would they unless it's communicated to them very clearly.

Brittany...

I am always surprised that with all of the information that is available, that this topic is relatively ignored. I wonder why?

Yes this is how we get paid. I hope the people that use two or three agents without telling the agents they are using other ones read this.

I, too, am amazed at how many buyers don't understand this. Many of them don't want a buyers agent because it think it will cost them -- and go straight to the listing agent of the house they want to see. They are really hurting themselves -- in both the short and long runs!

Hi Brittany, it is still an area of confusion for so many people. I think a lot has to do with the uniqueness of our industry's model.

Brittany, There is a movement by discount brokerages pay co-op fees of $1. What this does is makes the buyers pay our fees. In my counciling with new buyers I ask if they want to see all the homes or just the ones the seller is paying me. If they want to see all the homes, I write as a contigency "seller to reimburse buyer x% of sale for real estate commissions.

It should not be that confusing but some people must have a tough time grasping the concept. It is up to us to explain to our clients how it works for them.

I get asked how agents are paid all the time. I've even had sellers think that when a cooperating broker brings an offer, the buyer pays that broker and the seller pays only half of the commission, not all of it. And this was from a seller for whom I'd sold several other properties. I've also had buyers at closing try to give me a check. I suspect our model is very confusing for consumers.

Brittany, great post. Several years ago I was involved with a weekly networking group. After several months of hearing the attorney, accountant, massage therapist, contractor and psychic (you get the idea) each offer "45 free minutes of consultation", I contemplated my role as a finance consultant and that of my real estate compatriots. We sometimes give six, nine or twelve months "free consultation"!

I do, however, believe good agents miss an opportunity when they state simply that the "seller pays my commission". And, in doing so, the consumer (particularly my First Time Homebuyer) is much more likely to discount the importance of being fully represented by a Buyers Agent and/or a seasoned professional (in contract to the neighbor, cousin, gardener who just got "into" real estate!)

As a HUD certified First Time Homebuyer Trainer (and having dedicated much of my career to the educatiion of the home buying consumer), I counsel my students and clients that the simple fact is that the seller does pay all real estate commissions; however, they will ultimately pay the cost if the transaction is not favorably negotiated on their behalf.

Consider: If the buyer pays 5k, 10k or more for the property are they not "paying the commission" in the long run (in increased financing)? The same could be said about appliances, repairs, etc.

My intent is not to be contrarian, rather to bring clarity to the point that a strong, professional Real Estate professional is truly worth gold (and $$$$) to our respective clients.

I have also known many people who think that the individual agent gets the entire commission instead of splitting it four ways. No wonder they think we're loaded!

There is also the misconception that the buyer will get a better deal from a seller if they are not represented-not always true.

Whether you say the seller pays the commission because it's "in the price" or the buyer pays it because they pay the price doesn't seem to be the confusion...it's who gets how much of what....the brokers,the agents...and then of course Uncle Sam.

Brittany:

What many people do not fully understand is the risk that Realtors operate under. There is always the possiblility of doing months of work for a client and making no money at all. This needs to factor into the reasoning of those who think commissions are too high.

Good post some call it a success fee(we only get pd. when we succeed in accomplishing YOUR GOALS ,Mr. & Mrs. Seller).

On another note one could make an arguement that the Buyer pays the commission as it is part of the purchase price !

Real estate agents are risk takers of the biggest kind. For, as you state, we do all the work and never know if we ever earn a dime!

I think it's odd that Realtors take pride in doing everything on a contingency basis. We all know that we take listing after listing and the truth is sometimes no matter what you do, some of them do not sell. Whether it's price, location, or Nothing. And we see those listings go from agent to agent everytime they expire. Until finally agent #3 or 4 gets a buyer and the sale closes.

Whether you are the first agent or the fourth, do you tell yourself that obviously agent #4 is the one that finally did the job right?

Doctors, lawyers, accountants, mechanics...all get paid a fee for their services. Why should a realtor be any different? The object of the listing agreement is to market a home effectively, etc. It does not guarantee a sale.

Morning Btittany, Still seems to be a lot of confusion among the general publuic. It is wise to break down the distribution of money when speaking with a client.

People are asking more because they never really understood it. Many thought that the company paid you b the hour and maybe a bonus for sales you brought in. Many people think the things I send out as mailers an at Christmas are paid for by the company as they have the company name as well as my own. "How many of these planners do they give you each year?" I've been asked.

Now that there are companies that piece out real estate work to the public, there is a new awareness. There are probably 8 or 10 companies that I am aware of that will put your listing in the MLS for $200-500 dollars. Some will provide a sign and/or a keybox at an extra charge. Another company will show you 3 homes for signing up with them, but then they want a cash payment for the next tour.

If you watch the growth of these companies you will see and little by little they begin to offer more services and the base cost goes up. For the most part, buyers and sellers of homes need full service, but they are willing to ty something cheaper. They don't know what they don't know. Once they learn a few things they probably hire an agent. Usually their listing has a long market time attached to it by then and it's a tough property to get any splash when you market it as an agent.

Out there in the world there have always been 10% of the people who are willing and capable of tackling this kind of thing on their own and they do a remarkable job. Good for them. I can survive helping out my share of the other 90%.

Brittany, Thanks for this posting. I think there are some people who think we may be 'on the clock" or salaried somehow, and that we just unlock doors for them, when in fact we have to produce a positive result to get compensated.

I have had clients who think the seller will pay me fees after my inspection! The buyers don't understand that I work for them!

Brittany, there seems to be a lot of confusion in this area. Sellers often think the listing agent gets all of the fee.

You would believe the amount of people who think all we do is, sign a few papers, slam a sign in the yard and wait for a check. A check for the full commission on the sellers contract.

Great idea for a post. People often think we make millions (LOL)

Brittany - this is a good post, and most people really do not understand how agents get paid. We get paid when the job is complete, and not otherwise!

I think that fee for service exist comfortably along side % for service, in fact I think that a proliferation of business models is still ongoing. I have a different read on who pays though. You can also make a case for the buyer paying the commission as well as closing cost. Since the bottom line affects the price, then any fees are buyer expenses. However, if using Realtors causes this then you do get state abd board certified contracts, contingencies, and a Code of Ethics to help insure a successful and fair transaction.

Barbara, I like your idea of the world working on commission. Boy would customer service improve!

But that would never work, most people don't have what it takes to work on commission.

And it is sometime tough when in one month we have 3 deals go "down" due to inspection issues, financing, or the buyer simply walks away. I know this from experience just this past month, not fun, but that's the way it goes sometimes. I just hate the time lost.

Thank you

Some would argue that the seller does not pay the commission. The buyer pays for the property . . .

Sometimes the buyer pays their own agent.

Sometimes the bank pays the commission out of neither proceeds nor profit.

The chicken and egg chase each other in circles. :)

Brittany, When you break it down to the simple logic of what we do for our clients they are getting a great value...compensation only upon successful completion great concept isn't it.

There's always a balance between the fee for service and commission based all or nothing approach.

I use both, otherwise, on some projects I'd never get paid.

Brittany,

Good post with food for thought for our consumers!

All the best, Michelle

brittany, I agree that it is still unknown to a lot of people. However, I think there are those buying homes that really don't care. If they did they would be more loyal in some cases.

Brittany, you are right and after reading the comments I am reminded at how important this conversation is to have at the first meeting, no matter how educated the consumer/client is.

Brittany,

It's important to educate the customer for two reasons:

1) To avoid confusion.

2) To show the customer that we are only getting a piece of the commission pie; not the whole pie.

Smart post!

Good back to basics post addressing an important issue!

Hi Brittany, Thanks for the great post! This question does seem to come up often. Great comparison to how mechanics, doctors, etc. get paid.

Brittany - I love how you put this! Great post!

All the more important for buyers to be well-qualified and for the loyalty chip to be present.

Good post - funny how the government and the Barry Frank crowd is now demonizing commission paid people. We all know that in RE, if agents and loan officers were not on commission half of the deals would never get done.

The questions at the end are the best! If people looked at it from that angle, they might understand just how valuable a great Reatlor is!

And the seller can pay if they breach!

Thanks for posting this!! I do my best to explain commission when I meet with a client on the first consultation. I would say 99.9% of the clients I explain this to have NO idea how we get "paid"!!

Hi Brittany,

I think people around here are pretty savvy as to HOW we are paid... They seem to "get" that we get paid at the closing table. However, I am having a lot of sellers trying to "change the game" and "get creative" with my commission. They are often looking for any excuse - "You sold the home so quickly! You couldn't have put in that much time!" "The home sold so slowly! You didn't do your job right!" "We didn't get our price - we need you to throw a few thousand in to 'make it work' for us!" So I think perhaps - the issue is more HOW MUCH it costs and the perception that this is an unreasonable amount to pay. Also factored into issue is the notion - no matter how illogical, that the agent receiving the check pockets the ENTIRE amount.

Explaining to the consumer how our business works is entirely up to us. Sometimes I think we forget that not every knows!

I explain this to my clients and potential clients (customers) at first discourse. They do have a right to know how commissions are paid, and by whom. BTW is "awful nice" the same as "good grief"??

Yes it is our job to explain this to the consumer....shouldn't the NAR also advertise to get the word out what we do and how we earn our pay.....some of the previous comments would make a great campaign for the NAR to use to help us all..(even more)

Awesome post with some much needed information. I try and get rid of the mystery and explain to my sellers how compensation works.

Brittany, you can't explain it any better than this! Great job!

I see this all the time as well. Buyers and Sellers don't fully understand how we get paid until we explain it to them. Great post

Brittany, I especially like the part about the dietician not getting paid until the weight is lost! LOL. Our clients don't get the fact that we could market a home for a year before we get paid. Great post.

Brittany, I think that real estate agents have done a poor job overall letting the public know that we do only get paid if we are successful. This is a timely blog, well written. Thanks for writing.

Brittany, Thanks for the post! I have been trying to explain this to y customer/clients at first contact as well. I want them to know that I have a vested interest in their happiness! Have a Great Weekend!

Hi Brittany~ It can be confusing, and it is out job to make sure we educate our clients every opportunity we get.

Brittany - The first consultation is always the most important. Lay out everything and make sure the prospect is educated like Vickie mentioned.

Love Randy's comment (#2) - people do tend to want to involve every agent in town and then no one wants to work with them because we do compare notes!

Good Post. Most buyer do not understand how we get paid. As professional would should spend more time talking about that with our clients.

I like your way of thinking and I wish it was that way. It would make things more fair. Only pay for results.

Got to chime in. Another great post

I did a post similar to this a while ago. We are paid based on performance. Seems like a pretty fair way to operate a business, but people also try to take advantage of the way we work all the time.

Brittany,

I agree most clients don't understand how we get paid as realtors. This post clarifies the whole payment process.

We should explain this to our clients/customers so they will feel informed not to mention it goes a long way in strengthening the relationship with our clients/customers and improving the image of Realtors.

I have been asked this many time both by buyers and sellers. And, now with short sales, the sellers are even more confused as to who pays the commission.

It really is to the benefit of sellers and buyers to use the services of a realtor because there is no risk involved for the seller or buyer!

I'm always amazed at this when it comes to buyers. Imagine if buyers had to pay us a commission too? I'm glad buyers do not have to pay. They help to keep us working!

Well I've thought that we Realtors should get a retainer fee like most everyone else. Doctor, lawyer, Indian Chief, when you hire them you pay a retainer ususally upfront. As you go along it's worked down accordingly and there are different ways of doing this. Somehow this puts more "committment into" working with you. WHile in ways it seems as tho we work for nothing but it's all in the commission at the end when the contract closes.

Patricia/SeacoastNh

So true, I find that a lot of people really don't understand how we do get paid. Also they really don't understand that the commission that we do recieve also get spilt with our broker too.

I didn't think this was something people didn't understand either, Brittany. But, I guess it is. Thank you for explaining it so simply. I didn't know about the broker/agent split. This was quite helpful.

Hi Brittany - thanks for writing this one:) I get this a lot, too - always great to get it out up front.

I find it also needs to be explained that the ommission is actually split 4 ways and so I your listing agent do not get half, I get a cut of half. When broken down it seems to be more palatable to sellers.

I swear the only money to be made in real estate is teaching others silly designation courses, state required license courses, and CE courses. Motivational how to speaking is where the big bucks lie.

That first consultation with a buyer is crucial. We've gotta lay it out to them how we get compensated in detail. Once you get burned a few times from buyers that go and find a home, after you've showed them dozens, you (I) figured it out quickly, make sure they know how we pay our bills!

Judging from all the comments, this is an area that is very misunderstood by buyers. I'm sure buyers and sellers think that realtors get paid incredible amounts of money, without understanding all the work that goes into it, over months and months of time. Thanks for the post.

Hello:

It is funny how so many clients and potential clients just don't seem to get this and some think they can "save money" by contacting a listing agent. Well said.

Thanks for the post. It never ceases to amaze me how many people do not realize that we ALWAYS work on contingency.

Imagine how efficient things would be if everyone worked on commission. Especially government employees.

Brittany, great post! I love the way you tied in other professions at the end! It's so true!

Some professionals do charge their buyers. You cannot just state that there is no charge for ANY of us. Real estate fees are negotiable and set by each firm/agent. So that blanket statement is not true for all firms.

Brittany,

A great post, and a great way to educate your potential clients when they come to your site. Can I steal the theme and rework it on my site?

Hello Brittany - What great post! Things might get done correctly more often if folks pay were based on their performance. Thanks for the great information.

This is an area that certainly needs a lot of clarification for the general public. I'm sure they will thank you in your area for helping them understand!

Great post! Its important that whether you're buying or selling that you understand how the system works and how realtors get paid after the house is sold.

Lenn,

I have to disagree with you. I've done fee-for-service and contingency based business over the years. There are some consumers who fit into the fee-for-service model very nicely and there are others who do not. Both models can coexist and both can do well. If a client wants to shift the risk away from me by paying me up-front for my services, I don't have a problem doing so. Most people don't want to write big checks up-front. That said, the few who do, usually sell.

Tom

It's hard to believe that sometimes we wait months for a paycheck.

Great post. There are so many people out there buying that believe a buyers agent will cost them something

Great post, Definitley a thought starter.

It amazes me how many people still wont use an agent when buyng a home, because they think they have to pay for the service.

Hi Brittany -- Interesting analogy. Transparency is a good thing so consumers know exactly how things work.

MAR

2010

We accept the norms of our industry, but the public doesn't automatically know what that is. I'm in agreement that we should position ourselves as professionals and ask for a retainer to validate that the client is serious about buying a home.

This past fall I had a client that I showed over 50 homes in 6 weeks, and finally got an offer accepted. We were the winning bid out of 10. We were both thrilled, or so I thought. At the inspection, the buyer raised her arms and said, "If I have to put more than $1000 of my own money into this house, I'm walking away."

It was a foreclosure with damage to the electric system and the garage. She would have to invest more than a couple dollars. What she was really saying is that her dream house was a dream she wasn't ready make a reality, so I worked for free.

When we submit an offer it is with earnest money. I think our clients should hand it over sooner in the transaction so they are committed to it.

I find a lot of times people are afraid to ask or even talk about how I get paid, so I volunteer the information. Often clients don't realize that the company takes a portion of the commission.

Hello Brittany - great post! An informed client is a HAPPY client - usually!

You are so right! We spend money doing pro bono work for people in the hopes of making them clients. As you state, we only get paid if we complete a successful transaction. If would be great if people realized this, but they don't. People act as if your paid a salary TO do Real Estate Comps.

I recently was called by a New homeowner to do a Comp for his new home since he renovated it. I asked him why he didn't contact the agent that sold it to him, and his reply was he wanted someone to give him another point of view. As you all know, as agents, we can ONLY GO BY THE COMPS! The comps don't change if another agent does it.

You are absolutley right, if we only get paid to successfully complete a transaction, then why do Doctors, Lawyers, etc. get paid for their time. Is our Industry doing something WRONG!

I think most consumers know that Realtors don't get paid unless there is a close of escrow. That's why many of them will work with two or three agents at one time, without dosclosing it.

Recently on a forum, a person asked for referrals for Realtors. He asked for all the names he could get because he said he intended to be using several agents to help him find a home.

Fascinating discussion as I've always understood the 4-way split, so assumed all buyers are knowledgeable.

Great Post. What clients are really asking you is where is my hard earned money being spent., rather than why do you charge so much. If we take 6 one dollar bills and explain where each dollar is spent, it would take their objections off the table. 3 dollars to the buyer's agent, 1 dollar for marketing, 1 dollar for the broker, which leaves 1 dollar for the listing agent and half of that goes to Uncle Sam. That leaves us with 50 cents out of 6 dollars.

The listing agent cannot work for nothing, so there are only two other places that can be cut, the buyers agents commission or the marketing of the property. Either one would be a huge disadvantage for the seller and cost them a lot more money in hte sale.

So many people do not understand our business model. It is pretty simple.

If I don't sell, I don't eat!!!

I think if more buyers and sellers realized this there would be more loyalty in our industry.

I agree whole heartedly - except maybe about attorneys getting paid when they win the case. Alot of those cases are taken on contingently as well............................chris

Bill Travis, I hope you told that buyer that you could find them the same home their looking for as any any other agent, and a Buyers Agent has the Fidicuiary Responsibility of satisfying their client. Why would you want to waste your time.

Mary Joy, I feel your pain. I had 3 deals go south last year because of inspections, and a change of heart. Then I had to work for free to get or try to get their deposit monies back where they were entitlrf to it. I worked for FREE!, and to add insult to injury I didn't even get to keep them as clients because they purchased in other states.

As many investors and lenders will tell us -- the commission doesn't always come out of the seller's profits!

Looks like you started the fire with this one. There are many good points here. Maybe NAR should run a campaign on TV letting the public know how the process works.

I have assessed the time and expenses[including fee's et. al] it takes to service a listing. If we get the job done; we are paid well. It is not a profession for the faint at heart for those whose livelihood depends on their transactions. Many I have met have a spouse who income suffices or a retirement plan paying the bills their stress level is a little lower:)

It may seem a 100k transaction that takes 3-6 months[buyer or listing] is not very profitable but then we get the 350k transaction that takes 2 weeks.

To compare our profession to Doctors, Lawyers, Accountants is slightly narcissistic.

Almost ANYONE can compete in our business and if they hone their marketing and people skills and put in the effort MAKE A GOOD LIVING; without the excessive financial, educational and experience requirements for above mentioned Professions. And being commission based is the price we pay.

Phil

Brittany, your logic is sorely flawed and so is everyone else's perception, that is making a comment on this (because your all Realtors, of course)... This is why Realtors have such a poor image to the general public. You do get paid based on performance, but the majority of Realtors get paid based on the minimum performance. Realtors rope folks into exclusive contracts. Once you "sell" the contract, you lose the motivation to offer any more effort than the minimum, because they buyer or seller is stuck. You get paid a flat percentage based on just doing enough. At that point if they didn't like your service, they are contractually bound. I know, I know...you and many others are saying "if they don't like my service, they can fire me at any time"... I understand that is the case, but most people (the same ones that don't even know about the commission structure), are under the impression that they signed on the dotted line and now stuck, so they just muddle along, not knowing they can "fire" their agent.

Again, you get paid based on a minimum performance, not at "a level" of performance. A waiter gets paid on a "level of performance". What if a waiter said "Hey buddy, I brought the food, most of you got some water, it was edible and so what that it cost more than you hoped...give me my 15%!" With that type of service, they would get nothing!

How about you do all the same work, but NO contract, and when you get a call from a potential buyer or seller, you HAVE to offer business cards of 3 other Realtors that you think do a very nice job and can offer the same services you do?? NOW THAT would BOOST performance!!

Does any Realtor have the guts to agree with this post?? You all know it's true...

Wow, we get paid for doing this? What was I thinking. Thanks for telling me that Brittany, because now this is going to be a lot more fun:) Great post!

WOW... !!! I am dumfounded... I just read Phil's post (post # 116)... and I appreciate his perspective and honestly. Wow, go Phil!! You are the type of agent folks need to be working with! I congratulate you on your bold candor!

Buying a home is a full time job between contingencies, conveyancing and inspections people are foolish not to use an agent, especially if that agent does the best part of his job, negotiates a good price, not just one that get's it done.

Very well said!

One of the many things agents do before getting paid is the initial upfront out lay of funds that one needs to invest in selling a home or working with a buyer. The cost to market a home, or educate a buyer. With the chance/risk that the home will not sell or the buyer will not buy.

Thank you young lady short sweet and to the point I love it

Disclose, disclose, disclose. Our business seems very convoluted to the average consumer. It's best to be upfront about how we get paid. Not only does this make our industry go from 'shady' to 'transparent' in one fell swoop, but it helps to build client loyalty in the process.

Barbara #4 wrote: "I have always said that if the whole world worked on commission, things would get done faster. The thing is we don't get paid unless we do our job right!!!"

Is there any chance we can get government on this program?

Faster... and done right... or they don't get paid. Sweeeet

How about the seller or buyer asking you to cut your commission since you get the "full" commission and can "afford" to kick back some of your $ to make the deal? They are always amazed when you explain the commission breakdown (x% to franchise, x% to brokerage, x% to buyers agent, x% for advertisement, etc.) and they realize that you're not making a "Wall Street" killing.

Robert you think we could start a movement to pay congress this pay model or how about a vote of no confidence & get them out early? LOL

Very informative, while being presented in an easy-to-understand manner. I will definitely rely on you for all of my home-buying needs in Lawrence County.

I realize a lot of people do not get what commissions are all about. That is one issue. The other is that we should get paid on a commission basis. If everyone in a consulting related job got paid in this manner this would be horrible. Imagine a contractor getting paid on a commission basis if you like what he did to your house. Or a teacher if you liked how things went with your child? This is a very complex issue and I could write forever about it. Bottom line is sometimes a fee for services with maybe a performance bonus might be the best way to go.

Very clear & consise! I like you ideas about EVERYONE getting paid ONLY if their product worked! Let's lobby for that!

Brittany:

How we get paid and when (if) is something we should market better.

Excellent post. I think most consumers are also surprised to hear we pay for our own health insurance, association fees, office supplies, advertising, etc. I agree with those above who have suggested we discuss this more openly with our buyers and sellers.

Great post, Brittany. I like your take. And some good comments as well!

Brittany,

What a great way to explain it. It really does seem unfair that a Realtor only gets paid if the deal closes, regardless of how much time and effort you put into working with a client. If other professions only got paid when it was a done deal then things might be different out in the world.

MAR

2010

Good post. I think we all seem to forget sometimes that not all of our clients really understand the basics of how Realtors get paid.

Desert Mountain Real Estate

I do have to explain how we get paid regularly. You did a great job of Keeping it Simple.

Thanks for simplifying this!

I have found myself working with so many first time homebuyers because of the tax credit. They have all been clueless about the way commission splits work, a good explanation is always prudent.

Sometimes it is so basic we do not realize that the general public does not know it.

Think of how much better our govt. would run if they only got paid by keeping a balance budget and never spending more than they have. oh we could only hope they could feel our pain for one day!

Brittany,

Great post, I'm always amazed how many people have no clue on who pays what?

MAR

2010

I actually heard a story today about a homeowner who thought she owed the listing agent her commission when the house was LISTED. Not a bad idea!

MAY

2010

Great post! I'm always explaining this. Maybe I need to put something similar on my website. Thanks.

SEP

2010

It's amazing how many consumers have no clue about how Realtors get paid. I have to admit that when I first got married and my wife and I were looking for a home, I refused to call a Realtor because I didn't want to pay the fee. Ahhhhh! How stupid I was.

In all of my e-mails to potential buyers, I write the following, "My buyer services are always offered free of charge, and I certainly look forward to working hard to help find you the perfect home." My response rate went up when I added that line.

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Brittany Murphy

Bedford, IN

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Erie Islands Lodging

Address: Bedford, IN, 47421

Cell Phone: (812) 675-2293

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