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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
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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
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pay period and no hourly rate is determined by a labor board. Your REALTOR is paid only at the successful close of
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escrow on the property in question.

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Being a REALTOR is just like operating your own business. Your agent faces similar “overheads” found in 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.

Other REALTOR expenses come in many forms. Advertising your house, or their services, via magazines and news-
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papers 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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