Sue Kllima

West USA

Why does a Real Estate Agent charge commission?

Being a Realtor is not a nine-to-five job. There is no wage or salary check given to them from their employer at the end of each pay period. There is no hourly rate determined by any labor board. Your Realtor is only paid from the commissions paid to him/her at the successful close of Escrow on the property in question.

Being a Realtor is just like operating your own business. Your agent faces similar "overheads" found in any business venture. A good portion of their commission goes into satisfying these business related expenses, which directly helps serve you as a client. Depending on the agency he/she represents, that commission is often split with that 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 newspapers is extremely expensive. A single page in a "free" publication found at say the grocery store, can cost several hundred dollars alone each month.

Transportation, vehicle operating costs, payments and rising gasoline prices are also a very expensive portion of a Realtors business.

Office space/facilities/equipment must also be paid each month. There is also "The cutting edge of technology" that costs money. Computers, printers, hardware, software, web-pages, e-mail, cell phones with airtime, pagers, renewal hours and continued education classes are just some of the things which must be paid by your agent, before a commission is ever paid.

Basically, your Real Estate Agent is a self-employed business professional. Their job is to represent you in the transaction of Real Estate. Whether you are selling your 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 property expectations. As a licensed Realtor, there is a huge amount of responsibility that goes along with the job. Not only to serve you as a client, but to also help protect you and your interests.

When you retain a Real Estate Agent, please remember that they are working hard for you. The commission that they earn is typically well deserved.