I've Never Been Asked This
I've actually never been asked to cut my commission or "rebate" something (although I do give good housewarming gifts) to a client. Not sure why. A friend of mine posted this and I think it's a good way for folks to actually learn a bit about the glamorous, diamond-encrusted business of being a real estate agent:
Friends, before you go and ask for a discount on the commission paid to a Realtor for helping you sell or buy your home, 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, but wasn't going to compensate you for doing so, would you still do it? Would you work for free for weeks, months, and sometimes years in good faith that when the “deal” closes you’ll be compensated with no guarantee?
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 all on their own.
A few things to consider:
Real estate agents don’t get to keep all the money they make on deals. You see 2.5% on a $1m home is $25k. Keep in mind there are many customers that agents work with, sometimes for months and years and many clients don’t close because their plans change, their finances change, or life throws them a curve.
That commission is paid to them:
- Before taxes
- Before broker splits
- Before marketing
- Before board dues
- Before office bills
- Before professional photographs on your home
- Before all the other costs of doing business
Out of what’s left of their checks after all this, they can then begin paying for everything else. But wait, that’s not all! They don’t get afforded a lot of the things you likely enjoy at your job.
They don’t receive:
- Employer healthcare
- Employee matched retirement accounts
- Paid vacations
- Weekends off
- Nights off
- Sick leave
- Maternity leave
- Bereavement leave
- Company car
They pay for all of this out of their own pockets. Every single penny. Yes, there are some Realtors married to people working company jobs who receive some of these benefits. But the vast majority of real estate agents support their families on what’s left after they pay for all the benefits above.
Yes, they did choose a career in real estate. It’s a career that they love and it allows virtually uncapped growth and income potential. But they also have to often 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. They are there, available to help their clients when they are needed.
So before you tell another one of them that they make too much money and aren’t really needed anymore, I encourage you to do the following ...
Get your real estate license, start lead generating on your own, find clients who like you, and trust you to help them with the BIGGEST purchase of their lives.
Make sure you know not only what goes in the blanks of the contracts, but also what the rest of it means. Learn the legal steps of what happens once you write a contract, and what business partners are a good fit to help your clients, and who’s a scam. Try and keep deals together when they’re about to go south with critical thinking skills all while staying within legal parameters. Then listen, repeatedly, as others tell you the money you’ve been paid is WAY too much and they could do what you’ve done for much, much less.
And keep this in mind: the best real estate agents will help you do very well - but be aware that when they meet you, they are interviewing you to see if they want to invest in you, just as you are them. Be a good investment, and your agent will ensure you do well.