Page 6 - Kim Sargent GuideSellerCustom.pdf

Why Does a REALTOR® Charge Commissions?

Your REAL ESTATE agent is a self-employed business professional. His or her job is to represent you in a transaction of REAL
ESTATE. Whether you are selling a home, or looking to purchase property, a REAL ESTATE agent is hired by you to represent
your best interests, not just financially, but to help you achieve your realistic expectations. There is a huge amount of
responsibility that goes along with being your REALTOR®, not only to serve you as a client, but to help protect you and your
interests. Being a REALTOR® is not a nine-to-five job. There is no wage or salary check from their employer at the end of each
pay period and no hourly rate is determined by a labor board. Your REALTOR® is paid only at the successful close of escrow on
the property in question. Being a REALTOR® is just like operating your own business. Your agent faces similar “overheads”
found in any business ven- ture with a good portion of their commission satisfying these business related expenses, which
directly help serve you as a client. Depending on the agent and the agency he/she represents, that commission is often split
with the REAL ESTATE office to help cover the cost of doing business. Other REALTOR® expenses come in many forms.
Advertising your house, or their services, via magazines and newspapers is extremely expensive. A single page in a free
publication, such as those found at the grocery store, can cost several hundred dollars alone each month. Transportation,
vehicle operating costs and rising gasoline prices are also a very expensive portion of a REALTOR’S® business. Office space or
facilities and equipment are monthly expenses your real estate agent must pay every month. “Cutting edge” technology costs
money and computers, printers, hardware, software, web-pages, e-mail, cell phones with airtime and long distance, pagers,
renewal hours, and continued education classes are just some to the things your agent must pay for before a commission is
ever paid. When you retain a REAL ESTATE agent, please remember that they are working hard for you and the commission
that they earn is typically well deserved.

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