Realtors Charge Sellers Too Much!!!!

Realtors Charge Sellers Too Much!!!!

Why is this the perception of the public?  Is it because of the cars we drive?

My truck is almost 10 years old.  OK I also drive a Corvette that is 23 years old - almost historic, but without the prestige. 

 It is just old!

Or is it because they fail to understand what we charge, where it goes, and what we end up with?

It is easy as a seller to look at a $250,000 sale and see the commission of $15,000 and expect that goes into my pocket.

Let's look at realty.  In Ocala, Florida (What/where is Ocala?) the average sale price is ~$80,000.  Let's say the commission is 6% (it is illegal to fix commissions).

So the total commission is $4,800.

But wait a minute Mr. & Mrs. Seller.  I offer 1/2 of that or $2,400 to the cooperating broker to provide incentive for their agents to show your home and write offers.

So now I am left with $2,400.  Not bad for a 1 hours listing presentation and a sign and lockbox huh?

What you don't see Mr. & Mrs. Seller is what goes on behind the scene.

First, my broker keeps a portion of the commission as their fee for running an office and paying the staff.  So let's say I am left with ~$1,700.

Now with that I have to pay:

1. My staff and assistant
2. Advertising
3. Office fees (phone, office rent, printing & coping)
4. MLS dues, lockboxes, lockbox key fees
5. Specialized web site membership
6. Database fees
7. Gas,etc.
8. Uncle Sam!!!

 Annually that comes to about $50,000.  Now if I sell 40 homes at a gross commission of $1,500 each, those costs come to $1,250 each home leaving me $250 to pay my:

1. Mortgage
2. Taxes
3. Utilities
4. Insurance
5. Maintenance
6. Food
7. etc., etc., etc.

So Mr. & Mrs. Seller, do you still think I charge too much?

At these costs and rewards, I make less than minimum wage!

Aren't you glad I love doing what I do?

Join Active Rain

Can he sell it? Yes he can!

352-547-1074

Bob@bobtherealtor.net

Bob the Realtor