SO…YOU WANT TO BE A REALTOR
There is a lot of talk in the news about real estate agent commissions. They LOVE what they do and they do it because they LOVE helping people but there is almost always a huge misconception on what they do and how they get paid. It's not a secret so here ya go... The average FULL TIME REALTOR’s earnings last year was $31,900 @ 40+ hours a week. (Notice I wrote full time 40+ hours not 0-20 hours a week) which is well below the living wage. As a REALTOR they do not get paid a hourly wage or salary and they only get paid if they sell a home and it closes. They can only get paid by broker to broker. As an agent you could work with someone days, weeks, months, or years with no guarantee of a sale ever. Essentially they wake up each day unemployed going on Job Interviews and they deal with constant rejection. They dedicate time away from family, use our time, gas, pay for babysitters, miss dinner and weekends and rarely take vacations. They are on 24/7! You constantly need to be on, or you could miss an opportunity. Once they do close a home, half goes to the other persons agent from the remaining half. They have lots of upfront expenses that must be paid out before they even get paid: Broker Splits and Fees Office rent and utilities MLS Fees NAR Fees Local Association Fees E&O Business Insurance Extended Auto Insurance Self-Employment Tax State Licensing Fees Advertising Fees Showing Service Fees Website Fees Assistant's Salaries Showing partners Transaction coordinator Yard Signs Photographers Videographers Office Supplies Business Cards Property Flyers Electronic Lockboxes Continued RE Education Legal Fees Gas Income taxes are not taken out so they have to put that aside around 25-30%. Don’t forget health insurance if you don’t have a spouse who provides it. As a listing agent they have lots of tasks far more than just selling a home. 1. Prepare Listing Presentation for Sellers 2. Research Sellers Property Tax Info 3. Research Comparable Sold Properties for Sellers 4. Determine Average Days on Market 5. Gather Info From Sellers About Their Home 6. Meet With Sellers at Their Home 7. Get To Know Their Home 8. Present Listing Presentation 9. Advise on Repairs and/or Upgrades 10. Provide Home Seller To-Do Checklist 11. Explain Current Market Conditions 12. Discuss Seller’s Goals 13. Share Your Value Proposition 14. Explain Benefits of Your Brokerage 15. Present Your Marketing Options 16. Explain Video Marketing Strategies 17. Demonstrate 3D Tour Marketing 18. Explain Buyer & Seller Agency Relationships 19. Describe the Buyer Pre-Screening Process 20. Create Internal File for Transaction 21. Get Listing Agreement & Disclosures Signed 22. Provide Sellers Disclosure Form to Sellers 23. Verify Interior Room Sizes 24. Obtain Current Mortgage Loan Info 25. Confirm Lot Size from County Tax Records 26. Investigate Any Unrecorded Property Easements 27. Establish Showing Instructions for Buyers 28. Agree on Showing Times with Sellers 29. Discuss Different Types of Buyer Financing 30. Explain Appraisal Process and Pitfalls 31. Verify Home Owners Association Fees 32. Obtain a Copy of HOA Bylaws 33. Gather Transferable Warranties 34. Determine Need for Lead-Based Paint Disclosure 35. Verify Security System Ownership 36. Discuss Video Recording Devices & Showings 37. Determine Property Inclusions & Exclusions 38. Agree on Repairs to Made Before Listing 39. Schedule Staging Consultation 40. Schedule House Cleaners 41. Install Electronic Lockbox & Yard Sign 42. Set-Up Photo/Video Shoot 43. Meet Photographer at Property 44. Prepare Home For Photographer 45. Schedule Drone & 3D Tour Shoot 46. Get Seller’s Approval of All Marketing Materials 47. Input Property Listing Into The MLS 48. Create Virtual Tour Page 49. Verify Listing Data on 3rd Party Websites 50. Have Listing Proofread 51. Create Property Flyer 52. Have Extra Keys Made for Lockbox 53. Set-Up Showing Services 54. Help Owners Coordinate Showings 55. Gather Feedback After Each Showing 56. Keep track of Showing Activity 57. Update MLS Listing as Needed 58. Schedule Weekly Update Calls with Seller 59. Prepare “Net Sheet” For All Offers 60. Present All Offers to Seller 61. Obtain Pre-Approval Letter from Buyer’s Agent 62. Examine & Verify Buyer’s Qualifications 63. Examine & Verify Buyer’s Lender 64. Negotiate All Offers 65. Once Under Contract, Send to Title Company 66. Check Buyer’s Agent Has Received Copies 67. Change Property Status in MLS 68. Deliver Copies of Contact/Addendum to Seller 69. Keep Track of Copies for Office File 70. Coordinate Inspections with Sellers 71. Explain Buyer’s Inspection Objections to Sellers 72. Determine Seller’s Inspection Resolution 73. Get All Repair Agreements in Writing 74. Refer Trustworthy Contractors to Sellers 75. Meet Appraiser at the Property 76. Negotiate Any Unsatisfactory Appraisals 77. Confirm Clear-to-Close 78. Coordinate Closing Times & Location 79. Verify Title Company Has All Docs 80. Remind Sellers to Transfer Utilities 81. Make Sure All Parties Are Notified of Closing Time 82. Resolve Any Title Issues Before Closing 83. Receive and Carefully Review Closing Docs 84. Review Closing Figures With Seller 85. Confirm Repairs Have Been Made 86. Resolve Any Last Minute Issues 87. Attend Seller’s Closing 88. Pick Up Sign & Lock Box 89. Change Status in MLS to “Sold.” 90. Close Out Seller’s File With Brokerage As a buyers agent they also have many tasks. 1. Schedule Time To Meet Buyers 2. Prepare Buyers Guide & Presentation 3. Meet Buyers and Discuss Their Goals 4. Explain Buyer & Seller Agency Relationships 5. Discuss Different Types of Financing Options 6. Help Buyers Find a Mortgage Lender 7. Obtain Pre-Approval Letter from Their Lender 8. Explain What You Do For Buyers As A Realtor 9. Provide Overview of Current Market Conditions 10. Explain Your Company’s Value to Buyers 11. Discuss Earnest Money Deposits 12. Explain Home Inspection Process 13. Educate Buyers About Local Neighborhoods 14. Discuss Foreclosures & Short Sales 15. Gather Needs & Wants Of Their Next Home 16. Explain School Districts Effect on Home Values 17. Explain Recording Devices During Showings 18. Learn All Buyer Goals & Make A Plan 19. Create Internal File for Buyers Records 20. Send Buyers Homes Within Their Criteria 21. Start Showing Buyers Home That They Request 22. Schedule & Organize All Showings 23. Gather Showing Instructions for Each Listing 24. Send Showing Schedule to Buyers 25. Show Up Early and Prepare First Showing 26. Look For Possible Repair Issues While Showing 27. Gather Buyer Feedback After Each Showing 28. Update Buyers When New Homes Hit the Market 29. Share Knowledge & Insight About Homes 30. Guide Buyers Through Their Emotional Journey 31. Listen & Learn From Buyers At Each Showing 32. Keep Records of All Showings 33. Update Listing Agents with Buyer’s Feedback 34. Discuss Home Owner’s Associations 35. Estimate Expected Utility Usage Costs 36. Confirm Water Source and Status 37. Discuss Transferable Warranties 38. Explain Property Appraisal Process 39. Discuss Multiple Offer Situations 40. Create Practice Offer To Help Buyers Prepare 41. Provide Updated Housing Market Data to Buyers 42. Inform Buyers of Their Showing Activity Weekly 43. Update Buyers On Any Price Drops 44. Discuss MLS Data With Buyers At Showings 45. Find the Right Home for Buyers 46. Determine Property Inclusions & Exclusions 47. Prepare Sales Contract When Buyers are Ready 48. Educate Buyer’s On Sales Contract Options 49. Determine Need for Lead-Based Paint Disclosure 50. Explain Home Warranty Options 51. Update Buyer’s Pre-Approval Letter 52. Discuss Loan Objection Deadlines 53. Choose a Closing Date 54. Verify Listing Data Is Correct 55. Review Comps With Buyers To Determine Value 56. Prepare & Submit Buyer’s Offer to Listing Agent 57. Negotiate Buyers Offer With Listing Agent 58. Execute A Sales Contract & Disclosures 59. Once Under Contract, Send to Title Company 60. Coordinate Earnest Money Drop Off 61. Deliver Copies to Mortgage Lender 62. Obtain Copy of Sellers Disclosure for Buyers 63. Deliver Copies of Contract/Addendum to Buyers 64. Obtain A Copy of HOA Bylaws 65. Keep Track of Copies for Office File 66. Coordinate Inspections with Buyers 67. Meet Inspector At The Property 68. Review Home Inspection with Buyers 69. Negotiate Inspection Objections 70. Get All Agreed Upon Repair Items in Writing 71. Verify any Existing Lease Agreements 72. Check In With Lender To Verify Loan Status 73. Check on the Appraisal Date 74. Negotiate Any Unsatisfactory Appraisals 75. Coordinate Closing Times & Location 76. Make Sure All Documents Are Fully Signed 77. Verify Title Company Has Everything Needed 78. Remind Buyers to Schedule Utilities 79. Make Sure All Parties Are Notified of Closing Time 80. Solve Any Title Problems Before Closing 81. Receive and Review Closing Documents 82. Review Closing Figures With Buyers 83. Confirm Repairs Have Been Made By Sellers 84. Perform Final Walk-Through with Buyers 85. Resolve Any Last Minute Issues 86. Get CDA Signed By Brokerage 87. Attend Closing with Buyers 88. Provide Home Warranty Paperwork 89. Give Keys and Accessories to Buyers 90. Close Out Buyer’s File Brokerage Whew…exhausting isn’t it!?! You don't need to buy or sell a home to support your agents real estate business – here are just a few simple ways to show your support! By sharing one of their listings, sending a friend or family member their way, letting them connect you with agents outside their area for a broker to broker referral, or leaving them a positive comment or review, this helps them feel seen and supported - (thanks to you)! If you’re a Realtor, please feel free to copy & paste and continue to share this information.
Being an agent is not easy but most of us do it fro LOVE. If I can help with anything please call me at 410 340 -8518 or email me at andersonpowellrealestate@gmail.com. I would love to help
Coach Powell
Living the Dream