Realtors: Are you Being Robbed?
If you are a Realtor, there’s a good chance you are being robbed. If you know a Realtor, there’s a good chance they’re being robbed. Realtors work hard. (Disclaimer: I understand this will not apply to all!) Realtors can work an unreasonable number of hours. Realtors can put many hours of work in, shell out hundreds and thousands of dollars, and in the end, not get paid a dime. Realtors use their gas, often times buy meals and spend hours away from their family on nights and weekends to show buyers houses and give their expert advice. Most of the time that ends in a sale. Sometimes, it does not. A Realtor can also spend time and money on photographs, video, professional measurements, flyers, ads, etc. on a listing. Sometimes that effort and those costs result in a sale, sometimes it doesn’t. When it doesn’t, that Realtor has lost money.
When the efforts result in a closing, it may seem that all is well and that it makes up for the times when money is lost. Well, that can depend on what company a Realtor is affiliated with. A traditional real estate firm will take a split of the commission earned, typically 10%-50%. So, a commission earned of $3000.00 could be lower than $1500.00 when it hits the Realtor’s bank account.
Flat fee based companies, yes, such as United Real Estate Music City are becoming more popular among producers. Realtors are independent contractors, the CEO’s of their own business. They are looking at their bottom line and realizing they are giving away a lot of money. Just like clients don’t like to know they are leaving money on the table, Realtors are becoming more protective of their earned income. I have Realtors tell me they like the fact that they don’t have to pay for marketing, contract to close, or put their own listings into MLS. I understand that. It is nice to just go out and sell and not have to worry about the behind the scenes. I would challenge, though, that a vendor could be paid per transaction to handle those tasks and it would be much more cost effective than giving away a large percentage of hard earned income.
If you are a Realtor and are tired of being robbed, or you know a Realtor and you fear they are being robbed, give me a call. It won’t hurt to have a conversation about how you can add more to your bottom line and put more in your bank account this year.
Michelle Froedge is a residential Realtor and Principal Broker in the Greater Nashville and Williamson County areas of Tennessee. “Mom” to four-legged fur baby, Tyler, Auntie to Zelamie, she is a vegetarian and sings in her spare time. Michelle has lived in Nashville and Franklin since 1997 and has been selling homes since 2004.