I am continually amazed by how little some people know about the real estate business.
Most people generally have a good idea about how the industry works but every now and then I run into someone who is pretty naïve about the home buying process. Even doctors, lawyers, CEO’s and other professionals may not know how our business works.
Here are 10 things you should know about working with a Realtor®.
1) Realtors® work on commission
There may be a few exceptions here and there but most Realtors work on 100% commission. That means no salary, no draw, no bonuses, no nothing. If there is not a successful closing the Realtor does not get paid. No only do they not make any money they actually lose money. Agents are essentially small businesses with various expenses like advertising, websites, business cards, stationary, direct mailers, gas, time and energy. If they don’t generate revenue they lose money.
Realtors are not public servants. Don’t ask them to work for you if you don’t think they will get compensated with a commission from a successful transaction.
2) Hire a Realtor®
First figure out if you want to work with or without a Realtor. Some people want to work directly with the listing agent because they think that they will get a better deal on the property. If you do want to work directly with the listing agent keep in mind that they had a prior relationship with the seller before meeting you. The Realtor might look out for the seller’s interests instead of yours. It might be best to hire a Realtor that represents you in the transaction. Continue reading this post