Dear Home Buyers and Sellers of the Atlanta area and surrounding communities, have you been misinformed about Realtor commissions?
The post below, while certainly not an exhaustive list, does provide a good overview and some insight into how Realtors are paid and/or compensated for our services.
ORIGINAL CONTENT BY SHERRY SCALES 548155
You Have Been Misinformed about a Realtor’s Commission.
Real Estate agents get a bad rap. Everyone thinks we are the only professional that works on commission. Sellers try to sell homes themselves just so they don’t have to pay a commission. But unless you happen to be riding down that street and see that home, chances are it will take a long time to sell… if at all! And does that homeowner have all the information together to complete a sale? No, many will forget that they belong to an HOA, and special work is required to switch ownership. The buyer is out a lot of money later to straighten that out. Is the buyer sure they aren’t going to have a lien on that home from the previous owner? For sale by owners also have a habit of under-pricing or over-pricing a home. They aren’t going to have you get an inspection. If you are not working with an agent and buy a home from a for sale by owner…I say you get what you deserve. And I have yet to hear of anyone not running into $urpri$e$ when they have done that.
Travel Agents, Car Salesman, wholesale, any kind of sales rep works on commission. In fact in your own home a commission was paid to the Cabinet salesman, Floor covering salesman, Appliance salesman, Heating and air-conditioning reps, siding and/or brick companies, window companies, and many more depending on the upgrades your home has. Your Insurance Agent is working on commission. Paper salesman, every kind of advertising rep, yellow pages to TV ads to any kind of pen or other give-a-ways a business uses. The list goes on. If you are in Sales…you are working on a commission.
So why does everyone choose the real estate agent to pick on? We are helping you with the biggest purchase you will probably make in your lifetime. If we list your home, we usually take photos with our own camera or hire it done at our expense. We run flyers (paper and ink cost us money) and spend time getting your listing on the world wide web for the most exposure we can get for you. This is at no pay by the hour. We keep in contact with agents that show your home for feedback. We answer phone calls from agents and buyers regarding your property all hours of the day. We have purchased the sign and lockbox we use on your property with our own money. For the buyers, we are showing you homes in our car, with no one making our car payment or paying our gas or insurance, or replacing our tires from the wear and tear we put on them. We don’t get paid by the hour. We spend hours looking for properties to show, getting the showing instructions worked out, to spend more time getting contracts together and keeping all the paperwork in order when you find a home to purchase. We travel to title companies or lawyers offices and sometimes back and forth to get signatures. We run comps to make sure you are getting the best price for your home, whether you are buying or selling. This is time consuming work. We attend home inspections with you and sometimes for you. This again is time consuming work. And if we don’t sell your home, or find you a home to purchase…we make nothing…zilch, zero, nada…but we are still out gas expense and other expenses.
I pay for a website every month, just so you can go look at houses in our MLS free of charge.
We have spent time and money to attend classes to earn our license. We pay yearly fees and have to spend money on additional educational classes to keep our license whether we sell a home or not. Some of us have elected to spend the money to earn designations so we can be better educated in certain fields. You would probably be surprised at how much we spend a year just on the basics.
You think we are the only group of professionals to work on commission? And you think I don’t do anything to earn a commission? I think you better rethink the situation. Your are paying for my knowledge and expertise in real estate and everything it involves.
Call me when you are ready to sell your home or purchase a home. I will work hard for you. I have to! It’s the only way I get paid.
(Original Content by Sherry Scales – Austin Real Estate Specialist)
For assistance with buying or selling an Atlanta home, please contact Ron Tissier at 404-580-9069