Why are Real Estate Agent "Overpaid"?

Brian

You're singing our song. It is so hard to overcome such misconception of the value we bring to the table. I had posted a blog on this in state of pique when someone said all we provide is transportation and that we only open doors.

How much is your time worth? What we do for Sellers.

Since then, I have refined this and customize it for inclusion in all my listings presentations.

Our buyers and sellers do need to be enlightened on how we earn our keep. The funny thing is, everytime they need something real estate wise, they will consult with us for our professional opinion.

Brian,

I agree that we do not focus on the time, but our expertise and experience.  I have several inexperienced agents in my office and I always stress that they not focus on the time to sell a home, but instead to focus on the experience in our office.  They may not have years under their belt yet, but they have me and lots of others in the office to bring over 200 years experience to the transaction.  That should be very valuable to a seller or buyer.  Thanks for sharing.

First, I like your premise.  We don't provide a menial labor skill or service.  We are supplying a service where knowledge and skill have a direct outcome on the result.  Second, we aren't working for an hourly or per diem wage.  We receive a commission solely on the results.  Although we may have sold this house quickly, we might also have had listing or buyers where time was expended without a purchase (ie. no compensation).  Third, some owners have no concept of the time involved from preparing the listing presentation, measuring rooms/taking photographs, entering into MLS and other sites, showing the property, obtaining feedback, etc.  Some think that all took was - placing a sign in yard or putting it on MLS.

Maybe if we had the same education requirements as Lawyers and Doctors it wouldn't be as hard for us to educate the public on the value of our service. 

As for Doctors, if they miss diagnose what is wrong with you and you have to come back, they get paid twice.  Attorneys lose your case in court, they get paid anyways. Mechanic works on your car and doesn't fix what is wrong, you get to take it back till it is right and then pay him.

We only get paid if we close the deal. How many times do you work for months and get nothing? Client decided they like where they are living and want to stay. so they cancel the listing and say thank you. That is the end of it. You did nothing wrong, where always available for them, consulted with other agents for them and provided expert consulting for them.

I want to ask listing clients, "if I take less and you cancel the listing for no fault of mine, you will pay me anyways?" I haven't done this. I am sure it would BLOW them out of the water, if I asked for a guarantee for my work. lol :-))))

Just some food for thought.

Good post.  How can we measure our value in hours or minutes.  And compared to other specialists we are well paid.  We just don't get paid often enough.  LOL

Good analogy. And good comparative examples. You get paid for your knowledge and experience, not on how much time you have to put in to do the job.

The client does not understand our process and think the job is done when you found a buyer.  There is another part of the job that takes a lot longer and that is the successful close.

I believe I'm not paid enough for what I do. It is always looks like someone's job or life is easy, but try working in that person shoes.