Agent Blogs

The REAL story behind the cost of being a Realtor !

This is going to sound like I'm compaining...and I'm really not !

I know many people think that Realtors make tons of money with the commissions that they charge.  Ok...here's the real story... we work on commission. To maintain our real estate licence, we must pay annual Real Estate Board dues, insurance premiums, advertising,  desk fees, broker's fees,  the cost of 'For Sale' signs, directional signs, etc.

And then there is the cost of maintaining a vehicle including the cost of higher insurance because we're using our vehicle for business, gas and maintenance fees for keeping our vehicle 'on the road'.

Now, let's take a look at electronics.  The cost of keeping a cell phone running at all times with Sellers/Buyers phoning, emailing, faxing and texting 24 hours a day, 7 days a week. Catchy websites are a necessity as well in this business.

Now the big one...our time.  We show properties, meet with clients, interact with clients via electronics or in person, draft offers,present offers, etc. And, unfortunately,  there are instances when we spend a great deal of time with clients and, for whatever reason, they decide to cancel their listing or the listing expires and doesn't get re-listed, or Buyers decide not to buy after all or go elsewhere to buy.  The money has still been spent.

When a deal finally comes together and we get our commission cheque, we normally split that commission with our Broker. Some of that money will go to the brokerage for their costs of running an office and, possibly, a franchise agreement fee. Normally the commission structure works so that when you see a total amount of, let's say as an example, 5% is being charged,  2.5% will normally go to the listing company and 2.5% will go to the selling company.

The money that we make must pay for being in the real estate business as well as paying for things such as mortgages, utility bills, taxes and maybe for some,  vet bills, etc.

 I know it sounds like I'm complaining...and I'm really not. Anyone who runs their own business will appreciate that that's the cost of 'doing business' 

I choose to be in this business. I enjoy working with the people that I have met along the way and I definatley appreciate them referring business my way.

And now...I'm off to hop in my Ferrarri, drive to the airport and board my private jet so that I can 'do' lunch in NYC and a little shopping for the day !!  :)