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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.
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Being a REALTOR is not a nine-to-five job. There is no wage or salary check from their employer at the end
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of each pay period and no hourly rate is determined by a labor board. Your REALTOR is paid only at the
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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
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any business venture 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.

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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.
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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, renewal hours, and continued education classes are just
some of 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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