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The Worst Way To Explain Your Real Estate Commission To A Client
I recently saw a list of 184 things that Realtors do to earn their commission. Many items on the list were items like, “Send a confirmation email for listing appointment.” Seriously! Another one was “fax copy of purchase agreement to lender.” Is that worth a five-figure commission? Or is that worth $15 an hour?
A plumber does not justify his fee by saying he had to retrieve a wrench from the truck. A lawyer does not say his job is difficult because he had to place the file folder in the appropriate spot in the file cabinet. Yet, a real estate agent says he deserves a commission because he sent a confirmation email.
Service providers – like electricians, accountants, or real estate agents – get paid well not because of what they do, but because of what they know. That is very important – we get paid well not because of what we do, but because of what we know. As long as we as real estate agents are trying to justify our commission by what we do, we will lose. A buyer or seller can do just about everything a real estate agent can do. A buyer can order a home inspection or contact the lender. A seller can put an ... more

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