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No One Works for Free and That Includes Real Estate

By
Real Estate Agent with Mapleridge Realty, CT 203-206-0754 REB.0759001

No One Works for Free and That Includes Real Estate

There are some changes coming in the real estate business and if they are handled correctly, they will have minimum impact, at least here in Connecticut.

No One Works for Free and That Includes Real Estate

The issue falls to how real estate agents are paid for their efforts, and where their pay comes from. It should first be understood that each real estate agent is a self-employed person with the only connection to a business coming from a mandate that they place their license under a managing brokerage.

The cost to being an agent, at the very least are membership to the State Association of Realtors, and then the National Association, local realty boards, which means cost of having access to the MLS System.

No one works in this business for an hourly wage with paid medical, retirement, paid vacations, etc. If one does not get a sale of a house, then one does not get paid. Which also means all that time helping a buyer to find their perfect home is for free until the property closes.

 

For Sellers:  The agent's job is to view the property and offer an informed opinion as to its condition. Recommendations will be offered as to how the property would show to its best advantage and these should be heeded. 

The agent will offer an evaluation of the house and where it sits with regards to value in the current market. The value is not a guess but done by researching local sales and making adjustments for differences in recent sales. This is a process similar to what an appraiser will be doing so the closer to the real market conditions, the better for the seller and the higher the sales price.

No online site will ever be as accurate as the person that walks through the doors.

Part of the sales price will be a fee to be paid for the agent's work and as would be explained, an allowance made for the agent that ma brig in the buyer. These are all negotiable, but if the agent does their job properly, they can explain the reasoning for all their costs.

 

For the Buyers:  There are a lot of online sites where one can see homes for sale, but almost none will allow a buyer to walk through the door unescorted by an agent. The buyer can attend an open house if offered, but aside from that they need to commit to a buyer's agent. 

The agent that may work the open house can answer some questions, but they cannot divulge facts on the house as their obligation is to the seller, by contract.

For that buyer to get their best information on buying any hoe, they need to find an agent they trust, and as required by law sign a buyer's broker agreement. This details what the agent will do for the buyer, what the buyer can expect and also how that agent will be paid. Most often, the payment for that agent would be provided by the seller, but the buyer must also be aware that they are getting the services of a professional and those services are not free.

There is not enough information on the Internet to allow the hands-on experience of an agent to be avoided.

A lot of ifs need to be satisfied before that house can close and if the professionals do their jobs correctly, all will come away with smiles.

No One Works for Free and That Includes Real Estate

Posted by

 

Edward (Ed) Silva
Broker Associate

Serving Central Connecticut Sellers and Buyers

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Nick Vandekar, 610-203-4543
Realty ONE Group Advocates 484-237-2055 - Downingtown, PA
Selling the Main Line & Chester County

I think in a few years we will be looking back and saying these lawsuits changed things for the better to the extent buyers understood they were compensating their agent and their agent was doing a good job for them.

May 16, 2024 11:58 AM
Ed Silva, 203-206-0754

Nick Vandekar, 610-203-4543   I am amazed that the national organization could have gotten into this mess. They wasted money on lawyers. 

And regarding your comment, I agree.

May 16, 2024 01:00 PM
Hannah Williams
HomeStarr Realty - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-820-3376

Ed Silva, 203-206-0754  Nor should agents be expected to. Just the process of searching for value before walking through the house takes hours of unpaid valuable time 

May 16, 2024 12:19 PM
Ed Silva, 203-206-0754

Hannah Williams   I believe far too many agents fail to let their clients appreciate the work that needs to be done to get them through a purchase and closing.

May 16, 2024 01:01 PM
George Souto
George Souto NMLS #65149 - Middletown, CT
Your Connecticut Mortgage Expert

Ed, hummmmm ...... lets see you expect to be paid for just putting up a sign on the front lawn ....  😋🤣🤪

May 16, 2024 01:04 PM
Ed Silva, 203-206-0754

Don't be silly, George Souto I pay someone to do it

May 16, 2024 01:23 PM
George Souto

LOL

May 16, 2024 01:44 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Ed, when all this came out, I put a 3-page brochure for both buyer and one for seller, identifying all the items we pay for WITHOUT a sale.  Then our duties (separate for buyer and seller) and now give to my clients before signing agency agreements.

May 16, 2024 01:26 PM
Ed Silva, 203-206-0754

Joan Cox   It's all about education and letting both sides know that there are costs associated with selling and buying that are independent of mortgage

May 17, 2024 05:25 AM
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
Retired New Hampshire Home Stager

Excellent post Ed. Before I was a home stager, I was one of those people who had no idea how much work real estate agents actually do.

Boy did I learn the truth! 

I give credit to each of you for the hard work and long hours you give to your clients.

May 16, 2024 02:04 PM
Ed Silva, 203-206-0754

Sharon Tara   The more experienced the agent the less strain they appear to do while doing their job.

May 17, 2024 05:26 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hello Ed - well stated.  

May 16, 2024 02:32 PM
Ed Silva, 203-206-0754

Michael Jacobs   Thank you, It was a moment of inspiration

May 17, 2024 05:26 AM
Patricia Feager, ABR,CRS,GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Ed Silva, 203-206-0754 - these are all excellent points. 

I applaud you for your well written blog post. 

May 16, 2024 03:52 PM
Ed Silva, 203-206-0754

Patricia Feager, MBA, CRS, GRI,MRP   Go figure, coming from me!

May 17, 2024 05:27 AM
Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

Absolutely! I have definitely worked for clients and never received any kind of $$ for doing so. No one should work for free!

May 17, 2024 05:29 AM
Ed Silva, 203-206-0754

Kat Palmiotti   It happens and when as a buyer's agent it can be more common as they think we're hiding potential listings from them and go to other sites to see some, especially the Z site

May 17, 2024 09:46 AM
Brian England
Ambrose Realty Management LLC - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

Anyone who expects a professional to work for free is not going to get the best results from whatever they are trying to accomplish.

May 17, 2024 05:44 AM
Ed Silva, 203-206-0754

Brian England   Typically, one gets what they pay for

May 17, 2024 09:47 AM
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate (435) 632-9374 - St. George, UT
St. George Utah Area Residential Sales Agent

There's always that element in society that wants everything for FREE but rarely do they understand that someone else pays for THAT! Thank you for this post, Ed, it says everything necessary to defend our industry and business standards.

May 17, 2024 08:40 AM
Ed Silva, 203-206-0754

Wanda Kubat-Nerdin - Wanda Can!   Everyone wants a great deal and feel that they are entitled to it, especially if they are new to the market. Buying a home is nothing like buying a car.

May 17, 2024 09:49 AM
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate (435) 632-9374 - St. George, UT
St. George Utah Area Residential Sales Agent

Everyone should read this post. Congrats on being featured in BananaTude Group, Ed!

May 17, 2024 08:41 AM
Wanda Kubat-Nerdin - Wanda Can!

You're most welcome, Ed Silva, 203-206-0754!

May 17, 2024 09:58 AM
Ed Silva, 203-206-0754

Thank you for the recognition.

May 17, 2024 09:49 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Hi Ed:

Well said, and a good discussion followed as a result!

Jeff

May 17, 2024 02:16 PM
Ed Silva, 203-206-0754

Jeff Dowler, CRS   The calls are always something different. This one reminded me of the expression, I went to a meeting and a party broke out.

May 19, 2024 06:13 AM
Kathy Streib
Cypress, TX
Home Stager/Redesign

Ed- 40 years ago I was an agent for one year. I remember telling Larry that staffing offices was a peace of cake compared to what agents had to do!

May 18, 2024 03:00 PM
Ed Silva, 203-206-0754

Kathy Streib   So many are out of the business so quickly after getting their license as it is nothing like they expected.

May 19, 2024 06:14 AM
Kathy Streib
Cypress, TX
Home Stager/Redesign

May 18, 2024 05:18 PM
Ed Silva, 203-206-0754

Kathy Streib   Thank you for the recognition

May 19, 2024 06:15 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Ed,

So glad to see your post featured! You said it well and I like the comments and agree everyone should read this post. No one should work for free.

May 19, 2024 05:21 AM
Ed Silva, 203-206-0754

Dorie Dillard Austin TX  With the issues facing all of us, agents need to sell themselves to their clients first before they walk then through a door.

May 19, 2024 06:17 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Good morning, Ed... to the extent that the public doesn't understand why we deserve our commissions, I say it's our industry's fault... most agents do a terrible job of explaining their value to buyers and sellers and have no clue what it costs them in time and money to service a buyer or seller.

May 19, 2024 05:58 AM
Ed Silva, 203-206-0754

Nina Hollander, Broker I know there was a terrible case that has brought all of this out to the public, but for me, it has been there for the 20 years I have been in the business.

May 19, 2024 06:19 AM
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Mass Media has made a mess of this whole thing . Zeroing in on our Brokerage Fees and not even touching all of the activities we perform to earn said fees !!!

May 19, 2024 07:49 AM
Ed Silva, 203-206-0754

Michael J. Perry  To discuss or write about anything else would require research and intelligence and many in the media do not have capability for either.

May 19, 2024 08:17 AM
Leanne Smith
Dirt Road Real Estate - Golden Valley, AZ
The Grit and Gratitude Agent

And those lawyers who promoted these lawsuits don't work for free either.  As licensed professionals we work for a fee and often we are not paid as listing agents or buyer's agents if our clients do not sell or do not buy a property.  Lawyers charge a fee regardless of their success. Big difference.

May 20, 2024 06:58 AM
Ed Silva, 203-206-0754

Leanne Smith    With the awards being given, there will be a lot of lawyers chasing the new sales seeking a reason to file another law suit.

May 20, 2024 09:36 AM
Leanne Smith

Ed Silva, 203-206-0754 you are 100% correct.

May 20, 2024 02:07 PM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Excellent post Ed!  Well written and thoroughly explained that real estate agents "work" to help buyers buy homes.  They will maintain their best interests at heart, be their fiduciary, keeping their information in confidence and work to their best ability to find them a home - for a paid commission.    And if they don't, well they won't stay in business long!

May 21, 2024 08:55 PM
Ed Silva, 203-206-0754

Jan Green - Scottsdale, AZ   And just like that you wrote the epilogue to my post!

May 22, 2024 05:14 AM
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

The requirement of signing a Buyer/Broker agreement is new to many of us. Yet, it is not a big deal. As a professional, I know my value and I know how to explain my value to my client. And NO I do not work for free...or agree to be paid less than my personal minimum wage.

May 25, 2024 03:55 PM