Thinking about Buying or Selling a Home without a Realtor®?

Here are a few Realtor Myths – Busted!

1.) Realtors make a lot of commission.

Sometimes it seems like those who are not involved day-to-day in the real estate industry perceive a Realtor’s job to be pretty easy. Some would say that the amount of commission we charge is too high compared to what we do to earn the commission. Opinions are subjective but I believe that many people really don’t know what a Realtor must do to maintain the high degree of expertise necessary to best represent our clients and to maintain a successful business.

Let’s start with the hard costs of signs, lock boxes, stationary, business cards, computers, tablets, cell phones, applications and programs, web sites, courier costs and in the case of higher producing Realtors, staff.

In addition to advertising on multiple web sites, property advertising costs could also include professional photographers, professional printers, professional measurement companies, videographers and advertising in print publications and social media.

Then there’s the costs of running a business. There are licensing fees, real estate board fees, real estate association fees, errors and omissions insurance, franchise fees, and the fees a Realtor must pay to their agency. On the low end these fees are approximately $12,000.00 per year. A premium real estate office will charge their Realtors higher fees which could be closer to $20,000.00 per year or more!

Of course all Realtors must maintain a reliable vehicle with business insurance.

A highly skilled Realtor has learned from the experience of being involved in hundreds or in some cases thousands of real estate transactions. These experiences create market knowledge and negotiating skills which benefit their clients.

To cover all of the above expenses a Realtor relies only on commission income and we do not get paid in advance. We are compensated after the transaction has completed, which can be months after we have performed our duties. Sometimes we will have performed all of our duties and we don’t get paid at all. This would be if the market conditions prevented a listed property from selling or if the seller changed their mind about selling or if a buyer client decided not to buy or bought through another Realtor.

2.) If I work with a Realtor to buy a home it will be too expensive.

The Realtor representing the buyer almost always receives their fee from the agency representing the seller, not directly from the buyer.

3.) A Realtor can work part time.

In addition to the duties required to market and sell a home and the duties required to locate the right home for a buyer client, a Realtor’s working hours must include continuing education, researching new and innovative marketing methods, maintaining data bases, web sites and social media, updating processes, following up with prospects, prospecting for new clients and in the case of higher producing Realtors, training staff and/or team members.

Being a professional Realtor is really being a small business owner and is definitely more than a full time job.

In my opinion our profession requires a passion for helping people and the best Realtors use their expertise and skills to not only create monetary value for their clients but also to help ease their clients through what can be a stressful and emotional time.

I remember that phone call I received at work one afternoon. The voice on the other end saying “Hello, I live in your Grandmother’s building, she is in my apartment and I’ve made her a cup of tea. I found your Grandmother in her pajamas in our courtyard. She does not know where she is, and does not have her keys with her”.

That was the final sign.

In hindsight, there was a slow deterioration of memory issues she had successfully kept hidden for some time. It was easy to overlook. “Oh she’s just getting older”. The diagnosis was actually Dementia.

Waiting to meet me at the wrong door at the shopping mall, forgetting names, putting plasticware in the oven to reheat food or forgetting to eat completely, hallucinations, asking questions that you know they know the answer to, and getting the response, “Don’t you know?”. All warning signs. All signs you want to ignore and explain away because you didn’t think it could happen to them. Your loved one may no longer be safe to live alone in his or her home.

When it was time to make the decision to place our Grandmother in a care facility, it was a very difficult one, but it was the best for her. She made friends, ate well, had lots of daily activities, was well monitored, and seemed very content with her new life. The daily visits from us were just a small part of her very busy life. Sometimes the hardest decisions, the best decisions, are the ones that protect the people you love the most.

In addition to the emotional stress of receiving the diagnosis and having to finding the best place for her to live, we had to arrange for the sale of her home. Thankfully, there are resources for us to use to help our senior loved ones make this lifestyle transition.

Visit our Seniors Real Estate Specialist® page for helpful links and to learn more about how an SRES Professional can assist with real estate needs for seniors.