Real Estate Agents are small business owners
I am a Re/Max Alliance Realtor. In practice, I am a self employed independent contractor. Re/Max doesn’t pay me a salary. And as with most brokerages, Re/Max keeps a portion of my commission. I pay my office for its support; but I’m not complaining. Re/Max brings a great deal of support and I am very happy with my small business owner arrangement.
Realtors aka small business owners work hard
Helping clients sell houses and buy houses is what I do as a small business owner. As a Realtor, I’m paid on commission. I am only paid when a home sale closes. In today’s hot seller market, the ideal way for any Real estate agent to ensure a steady income stream is to get and sell listings. Lots of listings is the key in today’s market. Of course, there are expenses with listings.
- Advertising
- Professional photography services
- Home Staging
- Print and postage; Flyers, Just Listed postcard services
- On occasion, I retain a professional such as a measuring company to get the most accurate info about the size and layout of a house. On other occasions, it is important to learn more about a building.
Additionally, I work with a number of buyer clients, representing their best interests. This adds more to a real estate agent’s bottom line. Working with buyers in a seller’s market is a time intensive task. A good agent needs to stay really informed of the housing stock, show houses on relatively short notice and potentially write multiple offers. No matter whether I represent buyer or seller, I still have certain fixed expenses. I have a great office staff backing me up and they are worth their weight in gold.
Vacant Homes For Sale
I frequently sell vacant homes where the seller has already relocated or maybe the home is a short sale. This can mean going over to get the trash out on the right day, ensuring driveways are shoveled in the winter and lawns mowed in the summer, that the house is secure, etc. I’m the guy that makes sure lights are on for a showing, but off in the evening.
In addition to listing expenses, multiple service and lock box fees, each month I must meet payroll, just like other small business owners across the county. Still, I wouldn’t trade it for the world. There is nothing better than being a closing table with happy clients buying their new home or selling their house. I love my job and look forward to working with you.
Thanks for the insight, Bob. I don’t think many people know about all the nuances of being a realtor; people don’t really think about realtors in terms of small business owners, but you really are…and it’s nice to know what all you’re doing in the background to help people successfully buy and sell homes. Thanks!