How Do REALTORS® Get Paid?

By
Real Estate Agent with Value Added Service, 602-620-2699 SA5376460000

This post is thanks to the March Challenge by Patricia Feager and Kathleen Daniels! 

During the housing recession, a customer walked into my company office asking if they could speak to an agent.  The receptionist referred the man to me.  After settling into a conference room, I learned that the man wanted to rent a home, not purchase a home.  

Having a prior career in property management is one reason I agreed to help this man.  Understanding the ins and outs of rentals, I took it upon myself to ask all of the leading questions in order to know if he was a good potential tenant.  

I should note that I don't handle many rentals.  In fact, only one client has a luxury rental property that he purchased through me that I help him lease about every year or two.  

 

Tenant Advisory

The questions I asked of this man concluded that he had borderline credit, no pets, could move in 2 weeks, and had funds for all the required deposits and lease up front.    Before showing anyone a home whether they are purchasing or leasing, it's always a good idea to meet in an office first to uncover wants and needs.  But in this scenario, even that meeting didn't uncover the tenant's character.  

Showing the man a few rentals, I learned that this man was not easily pleased.  I had requested he follow me to those rentals in Scottsdale.  He drove a 2 door BMW.    Although it was a nice car, the black smoke coming from behind  lead me to believe that he might not be the best tenant.  Did he maintain his belongings?  Was he a responsible tenant? 

Since we did not find a rental that he preferred and my growing suspicions left me wary, I elected to stop for lunch to chat about what he had seen.  Remember, this was during the housing recession when commission income was severely challenged with lots of inventory and few closings.  I was doing this man a favor and had the time and experience so I chose to help him.  

While we were both in line for lunch, I was ahead of this man because I was NOT offering to pay for his lunch.  As soon as he had his food on a tray, he quickly placed his tray in front of mine and told the cashier that I would pay for both lunches.  

Instantly, and keeping my emotions in check, I knew I was not going to work with this client.  Several red flags told me I could not trust this man,  he didn't value my services, and cooperation might be challenging.  

After lunch, I told him that I had shown him all that was available and did not feel I could help him any further.

My practice is always to tell clients HOW I AM PAID.  I am not paid a salary, but am paid by commission offered by the seller.  I perform months of service with no income until a sale closes.  That one lesson was enough to correct that negative situation.  Earning a client's trust and value is first and foremost and with that understanding we work TOGETHER to help sales close.  

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HomeSmart Elite Group                                  

8388 E Hartford Dr., Suite 100

Scottsdale, AZ 85255                                                         

(602) 620-2699   DIRECT

www.AZGreenRealty.com

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Comments (28)

Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hello Jan - a life in and around real estate proves that there is never a shortage of waving flags in this industry.  Sometimes they wave vigorously.   

Mar 26, 2023 03:31 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Hi Jan... the public is seriously misinformed about how we earn our money. I've been on a 30 year mission to educate my own clients and they are always surprised that I have no guarantee of income and what it costs me to run my business.

Mar 26, 2023 06:15 AM
Dr. Paula McDonald
Beam & Branch Realty - Granbury, TX
Granbury, TX 936-203-0279

Wow, I cannot believe he put his tray in front of you. I would have been inclined to have turned to him saying, "Why, thank you for offering to pay for the lunch."

Mar 26, 2023 07:48 AM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Yes Kathleen Daniels, Probate & Trust Specialist , I paused and thought about it but decided to take the high road.  Firing him as a client was enough for me that day.  Imagine during the recession!!  Thank you for this contest - a fun excursion down memory lane! 

Mar 26, 2023 06:12 PM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Right Kat Palmiotti ?!  What goes around.....  Thank you for commenting!

Mar 26, 2023 06:17 PM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

You're right Patricia Feager, MBA, CRS, GRI,MRP !  Thank you for the challenge. It's interesting thinking back on this aspect of real estate! 

Mar 26, 2023 06:17 PM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Spot on Dorie Dillard Austin TX !  I think the public takes one look and makes an immediate knee-jerk reaction to us as realtors.  We are all this or that.  Frustrating to say the least!  Thank you for stopping by!

Mar 26, 2023 06:18 PM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

You bet my blood was boiling when that guy put his tray in front of mine.  It was lunch at what is now Panera's so not expensive thankfully.  At least you get lunch.  I get an email!   That would be so awkward!  Thank you for reading and stopping by!

Mar 26, 2023 06:21 PM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Very true Michael Jacobs !  It always amazes me what people think will pass muster!  Thank you for stopping by and commenting!

Mar 26, 2023 06:22 PM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

So true Nina Hollander, Broker !  When someone tells me they want to get into real estate, my first comment is to save up!  Thank you for your comments! 

Mar 26, 2023 06:23 PM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

LOL Paula McDaniel !  I was a bit shocked and had my credit card in hand. The cashier looked up at me with a question mark on her forehead.  I just said, "Go ahead."  As if there are no other words I could say.  Thank you for stopping by!

Mar 26, 2023 06:26 PM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Jan Green - Scottsdale, AZ - Congratulations on your FEATURE!

Mar 26, 2023 07:37 PM
Jerry Newman
Brown Realty, 210-789-4216, - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

Hi Jan Green - Scottsdale, AZ I used to help renters find properties to lease like you, but I stopped based on the scenario that you experienced. He was wasting your time and looking for a FREE lunch. Picky renters will only take up to much time. 

Mar 27, 2023 07:23 AM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Thank you Patricia Feager, MBA, CRS, GRI,MRP !  

Mar 29, 2023 03:33 PM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Spot on Jerry Newman !  Here's another good one for you - Just yesterday I picked up another lead from an online app.  Checking the listing that the California agent shared with me, was just cancelled on the other side of town for $20,000.  The lot was not buildable, had no utilities, and was next door to another home on a golf course.  Crazy that the next door neighbor doesn't buy it.  I politely turned it down!

Mar 29, 2023 03:39 PM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Jan Green - Scottsdale, AZ - can you get me one more photo for the body of the post?

Thanks, Jan. 

Mar 29, 2023 06:55 PM
Jan Green - Scottsdale, AZ

Thank you Patricia Feager, MBA, CRS, GRI,MRP !

Mar 29, 2023 07:22 PM
Jan Green - Scottsdale, AZ

You got it.  Thanks for the quick heads up! 

Mar 29, 2023 07:02 PM
Patricia Feager, MBA, CRS, GRI,MRP

Jan Green - Scottsdale, AZ - Thank you!!!

Congratulations on fully completing the March to a Solution|ActiveRain March 2023 Challenge!

Mar 29, 2023 07:19 PM
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

Jan Green - Scottsdale, AZ my first thought was "the audacity of this man!"  To take advantage of you spoke loud and clear.  You definitely made the right choice and yes, you took the high road. 

Mar 29, 2023 07:45 PM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Thank you Diana Dahlberg !  I was speechless, but my brain was working 100 mph!  Have a great rest of your week!

Mar 30, 2023 09:57 AM
Diana Dahlberg

You too!  I'm leaving on Saturday and flying to Miami and meeting up with my Daughter (from Peoria, AZ). From there we are doing a Mother and Daughter Caribbean Cruise.  I'm stoked!

Mar 30, 2023 10:35 AM
Jan Green - Scottsdale, AZ

Wow Diana Dahlberg that sounds wonderful!  Take lots of pics for us!

Apr 04, 2023 12:08 PM
Diana Dahlberg

Jan Green - Scottsdale, AZ I did!  Now I have to go through ... it was a wonderful trip!   And the first time in my life time of 69 years that I actually UNPLUGGED for the entire week!  Would recommend everyone do that!

Apr 12, 2023 02:11 PM
Jan Green - Scottsdale, AZ

Now THAT sounds even better!  Good for you!

Apr 12, 2023 03:19 PM
Kieran Jackson
Keller Williams Hollywood Hills - Los Angeles, CA
Realtor®, SFR, U.S. Army Veteran

Great post. Working with tenants is tough! Like you, I really don't like working with tenants. I prefer to work with rentals from the listing side only.


All the best!

May 05, 2023 07:44 AM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

So appreciate your comment Kieran Jackson !  Tenants can be decent, but the ones that aren't deserve to be tenants!  Thank you for commenting!

May 06, 2023 10:21 AM