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Is a realtor worth the commission

Is a Realtor worth the commission? The following was a post from a fellow licensed real estate agent and Realtor.

Before you go and ask for a discount on your commission from a Realtor, please understand what you're truly asking for them to do... and ask yourself this question: If your boss came to you and asked you to work overtime, but wasn't going to compensate you for doing so, would you do it?

Another day, another person who says Realtors are overpaid and an unnecessary part of a transaction. I’m assuming that those who think this have either been watching too much Million Dollar Listing or think they know how to do it on their own.

Here are a few things to consider:

We don’t get to keep all the money we make on deals. You see 3% on a $200k home as $6k. We don’t. The commission that is paid to us:

- Before taxes

- Before broker splits

- Before marketing

- Before real estate board dues or licensing requirement fees

- Before any payment to NAR for all our designation annual dues

- Before office bills

- Before all the other costs of doing business

Out of what’s left of our checks after all this, we can then begin paying for everything else. But wait, that’s not all!

We don’t get afforded a lot of the things you enjoy at a 9-5 job. We don’t receive:

- Employer healthcare

- Employee matched retirement accounts

- Paid vacations

- Weekends off

- Nights off

- Maternity leave

- Bereavement pay/leave

- Company car

We pay for all of this out of our own pockets.

Yeah, there are some Realtors married to people working company jobs who receive some of these benefits. But the vast majority of this support our families on what’s left after our benefits are spoken for.

Yes, we did choose to sell real estate. It’s a career which allows virtually uncapped growth and income potential. But we also have to be available at any time of the day when needed. Whether it’s showing homes at 7pm, writing offers at 11 pm or doing final walkthroughs at 6am. We’re there when we’re needed.

So before you tell another one of us we make too much money and aren’t really needed anymore, I encourage you to do this. Get your real estate license, start lead generating, find clients who trust you. Make sure you know not only what goes in the blanks of the contracts, but also what the promulgated parts of them say. Learn what happens once you write a contract, and what vendor partners are a good fit and who’s a scam. Try and keep deals together when they’re about to go south with critical thinking skills while staying within legal parameters. Educate the clients about what’s gonna happen after they close and what to expect in the couple years to come. Then listen as others tell you the money you’ve been paid is too much and they could do what you’ve done.

Exhausting, isn’t it?

Yes, it is exhausting and that is why we in real estate are worth comission we receive.


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