I'm Ripping up a $1000 Bill!

Figuratively, of course! 

I have this in my listing presentation and go over it with folks so they understand that this is my risk capital that I incur regardless of a sale.   It's generally a revelation to sellers how little money actually goes to one party.  Sure we as Realtors make income and sometimes it's very nice income, but when it's laid out like this I almost always get "you don't make enough!"

This lists the actual capital that gets spent.  But, the risk capital that is not on this chart is the hours and hours spent on prelisting, market knowledge, contract knowledge, touring, getting the listing ready, getting it onto dozens and dozens of websites, negotiating, communicating, and the continuous work to keep up with an ever changing market.  Those hours of intellectual capital are very expensive but are what lead to a successful sale and what cannot be recaptured if the chance for success is not there.

The value of the listing agent is not so much these $$ spent on advertising but the knowledge and ability to apply that intellectual capital to the matter at hand:  the sale of someone's home.  All too often the focus is on what we see in the graphic above when it really should properly be on what we don't - our time.