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No, I don't receive a salary, actually

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Real Estate Agent with Keller Williams Realty 583377

I was talking to one of my clients the other day that was singing the praises on how good I was, my professionalism and enjoyed my sense of humor, and how he wished he had used me in the past.  I asked him if he was that happy with me, how come he never gave me any referrals.  I told him I only work on commission and don't get paid until the transaction was completed.  He was shocked!!  He really thought real estate agents received a salary on top of the "huge" commission we receive.  After enlightening him, he extended several apologies and assured me that if anyone he hears of is looking buy or sell a home, he would definitely put me in touch with them. 

  It's funny, but understandable, people really think we get a salary.  It's up to us, as real estate agents, to enlighten them.  Maybe clients will be more loyal in the future if they knew how and when we get paid.

Show All Comments
Rita Sinclair
Alain Pinel Realtors - Hillsborough, CA
Your Scottish Realtor

Good comments, I know I always explain that although it is a 6% commission, (yes some sellers believe we walk away with the full 6%)  I always break it down and explain what goes to the buyer's agent, what goes to the company, what we spend the rest of the dollars on, they seem to be genuinely shocked.  We need to educate our clients more.

Aug 04, 2008 11:42 AM
Frank Bailey Sr.
Keller Williams Realty - Schertz, TX
Your retired Veteran, your Full-Time REALTOR

Good comment Rita, and you're right.  By the time we pay our "company, taxes, expenses, etc...) we don't make that much.  Here in Texas, (the San Antonio area) our home market doesn't have an over abundance of million dollar homes, so we have to work hard to make a decent living.

Aug 04, 2008 11:45 AM
Bobby Stevens
Windermere Real Estate/Lane County - Eugene, OR
Realtor, Eugene, Oregon

I always go over the commission split in my initial buyer consultations, but you've reminded me that sellers need to know how this works too, especially since the cost of my top-notch marketing is coming out before the money is even earned!

Aug 04, 2008 11:45 AM
Frank Bailey Sr.
Keller Williams Realty - Schertz, TX
Your retired Veteran, your Full-Time REALTOR

Bobby, ain't that the truth!!!  We pay alot for marketing, and it adds up!!  We have to educate both sides of the transaction, indeed.

Aug 04, 2008 11:47 AM
Barbara Carter
Century 21 Alliance Realty Group - Highland, NY
Serving Your Real Estate Needs in the Hudson Valle

Frank- this is a great point- We do not think of it, but you are right we need to point this out to our clients- I like the statement about the referrals- It is so true- If they really want to thank us send us a referral- it is the best thank you we can get. Great Post

Aug 04, 2008 11:51 AM
Frank Bailey Sr.
Keller Williams Realty - Schertz, TX
Your retired Veteran, your Full-Time REALTOR

Thank you Barbara, I think maybe we need to send some kind of a reminder message to our buyers so that they stay informed.  You can't really blame them for not knowing, but you can blame us, as Realtors, for not educating them.

Aug 04, 2008 11:54 AM
Jeff Johnson
On the Move - Louisville, KY
Proud To Be Your Realtor

I have noticed the same type of misunderstanding as to how we are complensated.  Good post

Aug 04, 2008 12:16 PM
Frank Bailey Sr.
Keller Williams Realty - Schertz, TX
Your retired Veteran, your Full-Time REALTOR

Thanks for the response Jeff.

Aug 04, 2008 12:41 PM
Michael Johnson
Carolina One Real Estate - Goose Creek, SC
Metro Charleston SC

Good post!  I must confess, before I was a Realtor I didn't know how agents got paid.  There is general assumption by many who are not familiar with the business that there is some sort of salary involved.

Aug 04, 2008 12:47 PM
Frank Bailey Sr.
Keller Williams Realty - Schertz, TX
Your retired Veteran, your Full-Time REALTOR

Thanks Mike,

 I see you're a fellow Air Force alumni! 

Aug 04, 2008 12:51 PM
Tony & Darcy Cannon
Aubrey and Associates Realty - Layton, UT
The C Team

Frank, it is amazing some of the misconceptions that people have about our profession.  You are right that we need to enlighten some of the people that just do not understand. 

Aug 04, 2008 02:51 PM
Frank Bailey Sr.
Keller Williams Realty - Schertz, TX
Your retired Veteran, your Full-Time REALTOR

I think they put us in the same category as car salesmen as we get a basic salary and then add the commission on top.  If you aren't involved in the real estate business I guess you wouldn't really know how the pay is structured.

Aug 04, 2008 05:59 PM
Sabrina Kelley
ERA Herman Group Real Estate - Woodland Park, CO
Woodland Park Colorado Mountain Homes and Land

How come the public isn't more aware of the pay structure of real estate agents?

Where has the industry failed in promoting more awareness about how a agent earns a living?

Aug 04, 2008 06:25 PM
Frank Bailey Sr.
Keller Williams Realty - Schertz, TX
Your retired Veteran, your Full-Time REALTOR

Sabrina it's just not mentioned.  The public is aware of that commission but there's never a mention about a salary on top of that, I think it's just assumed we get one as well.

Aug 04, 2008 08:53 PM
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