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 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
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
Keep Clients Updated With Each Step
Provide Comps for the Appraiser
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:
E&O Business Insurance
Extended Auto Insurance
Board Licensing Fees
Showing Service Fees
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. :)