The Everything Guide For Anyone Who Wants To Know What Realtors® Do To Earn Their Commission
One of the most important considerations while going through the home buying or selling process is whether you’ll use a real estate agent. Although at first glance it may seem like a real estate agent is just an extra expense for completing a real estate transaction, high-performing Realtors® work behind the scenes to complete transfer of ownership with as few problems as possible, avoiding all the common (and not so common) pitfalls.
But maybe that’s the issue. I mean, the good real estate agents make it look so easy. Whether it’s their many years of experience, extensive local knowledge, outgoing personality, or detailed process and checklists, the good agents bring a sense of calm and clarity to the closing table.
So let’s demystify the real estate agent’s job, and look at what exactly a real estate agent is responsible for before earning their commission. This helpful article will teach you the job challenges, and difficulties Realtors® face to help you sell your current property or purchase your dream home.
Buying or selling a home is a complicated matter which takes many steps to complete. But the truth is that Realtors® start their work before ever meeting with the customer. They participate in networking events, social gatherings, and other forms of professional marketing, they study the market and the current inventory in their local market, and they must take many hours of training and education.
Full-time real estate agents need lots of energy, excellent organization, and must know how to manage stress. That’s because they have many goals to accomplish in order to become a successful real estate salesperson.
Common Tasks & Responsibilities Performed By An Agent
- Coordinating and scheduling property showings
- Giving buyer and seller (listing) presentations
- Keeping up with current property laws and continuing education courses
- Ensuring earnest money is funded and delivered on schedule
- Scheduling property inspections for home buyers
- Checking in with mortgage companies
- Verifying homeowner’s insurance for new buyers
- Negotiating sales conditions, repairs, and counteroffers
- Scheduling and attending closings
- Getting disclosures signed and delivered
- Explaining and providing education materials
- Maintaining a blog and social media profiles
- Managing online reputation
- Being available via the phone throughout much of the day
- Returning phone calls and emails quickly
- Following up with customer inquiries
- Locating and presenting comparable properties for home buyers and sellers
- Selecting the right price to sell a home
- Meeting appraisers and inspectors at properties
- Getting clients to sign contracts and sending paperwork to title companies
- Ensuring clear title of property
- Explaining offers and contracts to clients
- Discussing neighborhood pros and cons
- Updating home buyers and sellers of each step of the process
- Coordinating and organizing open houses
- Staying at the top of mind with previous clients
- Entering and update listing information in MLS
- Working with vendors and companies to prepare home for new owners
- Determining fair market prices and disputing low appraisals
- Ensuring that loan mortgage funding goes through
- Maintaining a good work & life balance
In addition to having a lot to coordinate to help people buy and sell real estate, Realtors® also incur many expenses on the job. Although the average commission check might seem as if agents get rich quick from their clients, the truth is that a good portion of an agent’s income goes to operating their business. Here are some expenses that real estate agents pay regularly.
Common Expenses Real Estate Agents Pay
- “Desk fees” and broker fees
- MLS and NAR fees
- Errors and omissions insurance
- Auto insurance
- State and federal self-employment taxes
- Real estate salesperson licensing fees
- Online and traditional advertising fees
- Centralized showing service fees
- Website and online profile fees
- Assistant salaries
- Yard signs, property flyers, photos, videos, and other marketing fees
- Office supplies and material fees
Why Do Some People Believe Realtors® Aren’t Worth the Cost?
In real estate, just like in any other industry, there are people who assume they can make money for little work. The reality is that 80% of new Realtors® will fail. The 20% that succeed understand the difficulties and challenges of building a real estate business and maintaining relationships. Sometimes, clients interact with the 80% of real estate agents whose business will not be around for another year and have a negative experience. Alternatively, people who have a positive experience with a real estate agent might not understand all the hard work that made the property transaction stress-free and successful.
Whether you’re getting ready to sell property, or find the perfect home for your family in Durant, OK, We would love to help! As an agent, We enjoy building relationships and making the home buying and selling process simple for my clients. So, what are you waiting for? Give us a call or send us an email today, and We’ll make your real estate transaction stress free!