Why do Realtors charge so much? I’ve heard this question from friends and acquaintances. Let me share a little bit about the challenges a real estate agent undergoes.
First off, Realtors in Alberta do charge much less than in other parts of Canada! At the same time, fees may seem high to the layman. Imagine yourself as a Realtor and there are 5400 other Realtors in your city. Is the business just going to come to you? No! You have to prospect and that takes up a huge amount of time and effort. Clients may be few and far between for Realtors. Don’t forget that we, as a profession, are influenced by the economy and public confidence in the real estate market.
Realtors work on contingency. That means that we put in a whole lot of effort and if the deal falls apart 3-4 months down the road then we don’t get paid. When I list a home I invest $1500.00 of my own money! I need to get that back and more! Imagine going to work and your boss tells you that you may not receive a check at the end of the month. I think you may be getting my point. Lawyers can be expensive, but they don’t work on contingency. They take a retainer. If they did work on contingency their fees would be astronomical! Now one could pay a Realtor hourly for their work, but the public just isn’t ready to pay us in that way!
Imagine taking a client out for a 16 hours on a weekend to view houses and then you never hear from them again. What if they were just wasting your time and could not really afford to buy a house. It’s just something to do! Now I run my business in such a way that I try to eliminate these issues, but I think you get my point! What’s your hour worth?
Consider that in real estate, like many professions, 80 per cent of Realtors make 20 per cent of the money and 20 per cent of Realtors make 80 per cent of the money. To be super successful, sacrifices must be made and this can impact families and friends. My point is that a Realtor’s life requires balance just like yours and we have families to support just like you. Sure, we could work at another profession, but then who would watch out for your best interests in a real estate transaction?
Thanks for reading!
By Patrick Murray Join me on Google+