There seems to be a little confusion amongst the general public regarding how real estate agents are paid. And considering most people only buy or sell a home every 5-7 years, why would anyone remember such details? Understanding how their agent earns a living can help the consumer through the home buying or selling process. Here are some points to remember.
1) Agents are paid at closing--There is a line on the Hud (a document you get at closing) that discloses the gross amount the agent's company is paid at closing.
2) Keep in mind this is not what the agent keeps--A rookie agent will typically keep approximately half. So, if the company commission (from the Hud) is 3,000 bucks, your agent gets 1,500.
3) Agents do not earn a salary-- This is difficult for most folks to digest. Even if the agent works every day, unless there is a closing he or she gets ZERO! Some agents go months between closings.
4) If you write an offer with another agent your person gets NOTHING-- That kind fellow who drove you around for three weeks gets ZERO if you write an offer with someone else.
5) Agents do not get mileage-- Remember that agent who drove you around for three weeks? He has to pay for his own gas, oil changes, etc...All of these expenses come out of that 1,500 from closing.
6) Odds are you won't save money by using the listing agent--Some buyers think that calling the listing agent directly will save them money. After all, that fat cat agent is getting 6%! Remember, the company gets the commission, not the agent. Thus the company would have to agree to reduce the commission. How often do you think this happens?
7) I found this nice home at an open house, they said I can't use my Realtor-- This is not true, ever! Tell the host upfront that you are working with an agent (this will also get them off your back).
If the agent is not meeting your needs/ keeping you informed, by all means find someone who will. But if he or she is working for you be loyal to them!
If you are moving to Central Louisiana give me a call at (318) 640-2121. I would love the opportunity to demonstrate quality customer service!
