AS A CONSUMER IN THE REAL ESTATE MARKET, YOU WILL BENEFIT FROM THE SERVICES OF AN EXPERIENCED REALTOR THROUGHOUT THE HOME BUYING OR SELLING PROCESS. BUT EVEN THOUGH YOU MAY NOT BE FOOTING THE BILL, IT'S IMPORTANT THAT YOU UNDERSTAND HOW REAL ESTATE AGENTS ARE PAID.
DID YOU KNOW.....
- Sales associates are self-employed, and receive no salary or benefits. They get no paid vacation time, insurance, company cars or expense accounts from the firm they work with.
- Sales associates are only paid for results - if and when they successfully complete a property transaction.
- Most sales associates are paid the same whether a buyer purchases a home listed by their broker or another company broker.
- As independent contractors, sales associates have ongoing out-of-pocket expenses similar to those of any small business.
- Property Advertising
- Advertising and marketing of their services
- Marketing materials and direct mail
- For sale sign deposit
- Lock boxes, open house signs
- Total inventory marketing fee
- MLS access fees
- Computer hardware and software
- Long distance, cellular and/or paging service
- Postage and courier fees
- Business cards, stationery, office supplies
- Business insurance, self-employment tax
- Continuing education courses
- Personal assistant (salary, taxes)
- Fuel costs, maintenance and mileage on vehicles
- And, some pay monthly office rent
So when you consider a real estate agent to help you when buying or selling a house please understand that it costs them considerably to work with you whether they end up closing a transaction with you or not.