How Realtors Are Paid
Real Estate Agents are Independent Contractors
What that means is that the companies we work for hold our real estate license, allowing us to work under the auspices of that company. We do not get ‘paid’ by that company. We do not get regular paychecks, or receive benefits such as medical and retirement, no paid sick days, bonuses, or paid vacations.
We have monthly office fees for telephone, technology, printing, mailings and marketing materials. Monthly web site, multiple listing and database software, yearly license renewal fees, continuing education and professional subscriptions and dues.
We are only paid after the successful settlement of a listing, or buyer sale.
When Working for the Seller
As the listing agent I act exclusively as the Seller Agent and work solely on the sellers behalf. My loyalty and fiduciary responsibilities are to the Seller only. Negotiating and advising to achieve success for sellers.
When I list a property the total commission is negotiated at that time. A portion of that commission is offered as compensation to the Broker/Company that represents the buyer. The commission offered to the buying broker is established at the time the home is listed and is printed in the multiple listing services, MLS. The seller receives their Net Proceeds check final settlement. Checks are also issued payable to the Real Estate Broker/Companies that represented the Buyer/Seller. Several days after later, checks are issued to the respective agents who represented the Seller/Buyer.
The Broker/Companies issue a check for a smaller percentage of the total commission to the listing and selling agents.This is a happy day! I may have worked with my client for months with no pay. Sometimes we can work with a client for months, and something can happen causing the sale to not result in a settlement. No settlement, no paycheck. Agents/Realtor® work on 100% commission. In fact, we pay our companies that hold our license monthly fees for office, phone, printing etc.
When Working for the Buyer
When representing you as your buyer agent, I work solely on your behalf, navigating you throughout the entire process from start to settlement, preparing all the paperwork, negotiating with only your best interests in mind, communicating with you on a regular basis to insure that all your needs are met. Best of all…you don't have to pay me. My compensation is the portion of the commission agreed on at the time of listing and being offered in the multiple listing service.
As a buyer, it is very important that you always communicate with me and call me FIRST if you happen to hear about a property being sold by an owner, stopping in to visit a new construction site, or see an open house sign while driving around the neighborhood. Don't forget, it may not seem that important at the time, but if you happen to see a home you didn't expect to fall in love with, you will need me to handle the offer, negotiation and settlement of that home, and this is how I get paid for my services. If we are working together, keep a few of my business cards handy just in case.
New Construction, Open Houses and For Sale by Owners
At a New Construction Site, YOUR AGENT has to be with you the VERY FIRST TIME you visit, or they cannot represent you, or get paid. The agents at a new construction site work solely on behalf of the builder. They are not working in your best interests and builders do not give you any discounts because you don't have an agent. I've seen this happen time and time again, you will not get the best possible deal when working with new construction agents. Let me represent YOU and negotiate your offer to purchase with the best possible terms for YOU!
The agent sitting an Open House works solely on behalf of the seller. Even though they can handle the paperwork involved, they are not working for you and do not represent your best interests.
For Sale by Owners do not know how to handle the paperwork, disclosures, inspection process and the myriad of forms needed to protect YOU when entering into an agreement of sale. When sellers try to sell their own homes they are not passing the savings of not listing their home onto you. Most Owners selling their own home are happy to work with the buyers agent. The buyers agent usually ends up having to do all the paperwork, for the owner and the buyer, since the owner does not have representation. It is important to have someone who can mediate between the seller and the buyer without the emotional attachment which can affect the negotiations resulting in a successful sale.
Real Estate on the Go
If you're a buyer who loves to surf the web, drive around looking for open houses and look at model homes, at new construction sites, that’s great! I love it too! However, keep in mind that if you were to see a home you love and want to make an offer, to have buyer protection and full representation, a business relationship between us has to be established prior to walking into that home for the first time.
For more information about buying, or selling a home please contact me.
I look forward to working with you!