What Does A Realtor Do To Earn Their Commission?

What Does a Realtor Do to Earn Their Commission?

REALTORS® are known for helping people buy and sell real estate, but much of what a REALTOR® actually does to earn their commission happens behind the scenes. A good REALTOR® will make your real estate transaction flow smoothly through each step of the process, leaving the impression that their job is fairly simple. The fact is – that couldn’t be further from the truth. Anyone who has ever lived with a REALTOR® knows how difficult their job is. If you’ve never spent much one-on-one time with a REALTOR®, you may not understand how different their job is from the average everyday job. For this reason, I created a simple infographic covering a few of the day-to-day items that REALTORS® are responsible for. A day in the life of a good REALTOR® is extremely complicated.

Being a REALTOR® is Exhausting!

As you read through some of the tasks on the infographic above, it may seem overwhelming. That’s because it is. Full-time REALTORS® who excel in their careers are high-energy, time-efficient professionals who know how to handle stress and responsibility well. There are definitely REALTORS® out there who cut corners and do not take care of their responsibilities as well, but they should not define our industry. The real estate industry is loaded with very impressive professionals with whom I am proud to work with.

Common REALTOR® Responsibilities:

Schedule Showings

Schedule Listing Appointments

Maintain Required Continuing Education

Deliver Earnest Money On Time

Coordinate Property Inspections

Keep Up With Mortgage Company Progress

Verify Buyer’s New Homeowner’s Insurance

Coordinate Home Warranty Company

Negotiate Counteroffers

Schedule Closings

Attend Closings

Get All Disclosures Delivered & Signed

Keep The Transaction On Track

Provide Educational Materials to Consumers

Keep Your Blog Active

Maintain Active Social Media Profiles

Answer the Phone ALL DAY & NIGHT

Return Missed Phone Calls

Return Emails ASAP

Follow Up With Website Inquiries

Keep Up With Changing Laws

Run Comparables for Buyers & Sellers

Determine Accurate Pricing

Help Stage & Present Properties

Meet the Appraiser at Property

Meet the Inspector(s) at Property

Show Hundreds-Thousands of Homes Each Year

Get Signed Contract to Title Company

Negotiate Repairs

Keep Clients Updated With Each Step

Provide Comps for the Appraiser

Coordinate Closing

Make Sure There is a Clear Title

Explain the Contract to Clients

Provide Advice on Offer Price

Explain The Current Real Estate Market

Explain Pros & Cons of Each Neighborhood

Verify Completion of Repairs

Make Sure The Loan Funds

Schedule & Attend the Walkthrough

Dispute Low Appraisals

Verify Delivery of Title Commitment

Remind Clients to Schedule Utilities

Manage Your Online Reputation

Compete with 1,000’s of Realtors for Business

Deal With Vendors

Keep MLS Listing Data Current

Attend Real Estate Conferences

Network with Local Home Builders

Coordinate Open Houses

Check Up On Past Clients

Still Have a Life After You’re Done!

 

 

Being a REALTOR® is Expensive!

On top of the large list of responsibilities that REALTORS® carry, they also have many expenses to account for. When people see a REALTORS® commission check, they may feel like we are getting rich quick. In reality, the average REALTOR® makes around $50,000, after all expenses and taxes. Much of the money from our commission check goes to maintaining our business and licensing fees. Less than half of it usually goes into our bank account. Here is a list of some common REALTOR® fees:

Some Common REALTOR® Expenses:

Broker Fees

MLS Fees

NAR Fees

E&O Business Insurance

Extended Auto Insurance

Self-Employment Tax

Board Licensing Fees

Provincial Fees

Advertising Fees

Showing Service Fees

Website Fees

Assistants salaries

Yard Signs

Photographers

Videographers

Office Supplies

Business Cards

Property Flyers

Electronic Lockboxes

Continued RE Education

 

 

Being a REALTOR® Can Drive You Crazy!

Working in Real Estate Can Drive You Crazy. Many people try to start a career in real estate under the assumption that there is easy money to be made here. In reality, it is a brutal business with loads of competition. The paychecks are not large enough to keep people in the business, a fact that is reflected in the 20% success rate for new REALTORS® . Those who do survive usually do so because they have a passion for the business, and helping people make their real estate dreams a reality. It’s a great business to be in, but it’s NOT EASY!

So, the next time you work with a REALTOR®, remember that they are human just like you, and they carry a lot of burden and responsibility in their job. We work long hours for months on end for clients with no guarantee of a paycheck. When you understand these things about REALTORS® and let them know that you get it, you can be sure it will put a smile on their face. 🙂

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About combssellshomes

I am a Real Estate Agent at Landmark Realty in the Fraser Valley! I was born and raised here and have a vast knowledge of the towns and surrounding areas. I am a married father of 3 boys. I enjoy sports and anything outdoors!
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