When you go to your doctor do you ever ask him to discount his fee? How about your attorney? CPA? Your child’s teacher?
Have any of these professionals volunteered to help you with costs associated to their services? Does the doctor ever offer to pay for part of your prescription? Your CPA help you pay your taxes?
Enter your friendly Chico Realtor. Like your doctor, attorney or CPA your professional Realtor runs a small business. We have professional and association dues, continuing education costs, advertising bills, office fees and more. Each agent or office sets their commission based in part on what their expenses are. An agents commission gets divided up many different ways, generally every commission: 1. is split 50/50 between the buyers and sellers agent 2. is split again between the agent and their broker 3. has franchise fees, title company fees and errors and omissions insurance deducted from it. and 4. pays back advertising costs, vehicle expenses, professional dues and other costs.
Unlike other professionals Realtors are often asked to reduce their fee by their customers. Depending on the situation Realtors sometimes give up a part of their income to help make a transaction work for their clients. More often they assist by helping either the buyer or seller with some of the costs associated with selling or buying a home, like paying for an inspection or a repair. These contributions come directly out of the Realtors household income.
Realtors representing buyers often spend weeks and months showing their clients homes. Sometimes these clients end up either not buying or not using their agent to buy a home in the end. In cases like this the agent has worked long hours for no pay.
To better appreciate how generous Realtors are, try asking any other small business person if they will give you 20% off their advertised price, or only charge you if they win your case or cure your illness… And Realtors never make you wait in the exam room for a half an hour!
Have any of these professionals volunteered to help you with costs associated to their services? Does the doctor ever offer to pay for part of your prescription? Your CPA help you pay your taxes?
Enter your friendly Chico Realtor. Like your doctor, attorney or CPA your professional Realtor runs a small business. We have professional and association dues, continuing education costs, advertising bills, office fees and more. Each agent or office sets their commission based in part on what their expenses are. An agents commission gets divided up many different ways, generally every commission: 1. is split 50/50 between the buyers and sellers agent 2. is split again between the agent and their broker 3. has franchise fees, title company fees and errors and omissions insurance deducted from it. and 4. pays back advertising costs, vehicle expenses, professional dues and other costs.
Unlike other professionals Realtors are often asked to reduce their fee by their customers. Depending on the situation Realtors sometimes give up a part of their income to help make a transaction work for their clients. More often they assist by helping either the buyer or seller with some of the costs associated with selling or buying a home, like paying for an inspection or a repair. These contributions come directly out of the Realtors household income.
Realtors representing buyers often spend weeks and months showing their clients homes. Sometimes these clients end up either not buying or not using their agent to buy a home in the end. In cases like this the agent has worked long hours for no pay.
To better appreciate how generous Realtors are, try asking any other small business person if they will give you 20% off their advertised price, or only charge you if they win your case or cure your illness… And Realtors never make you wait in the exam room for a half an hour!
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