Am I Paying My Realtor Too Much?

Am I Paying My Realtor Too Much?

Are You Paying Your Realtor Too Much? I'm an Orlando, Custom Home Builder not a real estate agent. Over the past 30+ years I've paid a lot of Commissions. I've often asked myself, am I paying too much in commissions to agents? My short answer is no, probably not enough!

Think about it, the law of supply and demand still works in this country. Even though commission rates are fixed in most transactions, there's a lot of Realtors in every market. As a matter of fact, it seems like every social setting has three or more agents in attendance and the impression is, agents are everywhere!

Ok, so there are lots of agents in every city but a limited number of real estate sales transactions. That must mean the best agents are closing the most transactions and a lot of agents are just closing a few. So some agents, the best one's, are making great money. Good for them! With all the competition from other agents they deserve it!

Now lets look at what it takes to be a successful agent. Since most buyers work during the day, that means agents are working nights and weekends. Since everyone else works during the week and has weekends off, how much time does that leave for a spouse, family and friends?

Have you ever noticed how many divorced real estate agents there are? Frankly, it's a tough life. I like having my nights and weekends with my family, how about you?

So the phone rings and the agent has a potential buyer or seller to work with. Their expensive  marketing campaigns have finally shown results. In their business, there's no guarantees. Sellers can change their minds at any minute and decide not to sell or change agents at whim. Remember behind every door is another agent saying, I'm the best Realtor, use me! 

Buyers turn out to "just be looking" after spending weeks with an agent. Gobbling up precious time they could have invested in a live prospect, to say nothing about wear and tear on that expensive leased car and set of new tires. 

If everything goes right and the agent is able to finally bring a deal to the closing table, only then do they get a taste of success but not before paying their Broker and perhaps sharing that hard fought commission with others.  

Don't get me wrong, I've kissed some real frogs, over the years. I didn't just fall off the back of a turnip truck! Agents that were out to just get me to buy or sell without consideration of what was best for me. That just makes me more determined to treat a professional Realtor better.

I suggest instead of asking, am I paying my Realtor too much perhaps, it's not enough!

I've learned, if I want the best deal on a real estate transaction to be right up front with my Realtor. Tell her what my real budget is, that I'm only going to be working with her and I'm looking for a longterm relationship. In exchange, I'm looking for her to "give me her heart" and to be my partner in this transaction. I want her to know if she treats me right I'll be her customer for life.

The right agent will work their butt off for you because, a loyal client is hard to find! She knows the next time I'm going to buy or sell something I'm going to call her and doesn't want to loose a great client for the sake of a one-time commission. Successful Realtors know it's all about establishing a relationship with people that understand it's about the win-win.   I Paying My Realtor Too Much?

Are You Paying Your Realtor Too Much? I'm an Orlando, Custom Home Builder not a real estate agent. Over the past 30+ years I've paid a lot of Commissions. I've often asked myself, am I paying too much in commissions to agents? My short answer is no, probably not enough!

Think about it, the law of supply and demand still works in this country. Even though commission rates are fixed in most transactions, there's a lot of Realtors in every market. As a matter of fact, it seems like every social setting has three or more agents in attendance and the impression is, agents are everywhere!

Ok, so there are lots of agents in every city but a limited number of real estate sales transactions. That must mean the best agents are closing the most transactions and a lot of agents are just closing a few. So some agents, the best one's, are making great money. Good for them! With all the competition from other agents they deserve it!

Now lets look at what it takes to be a successful agent. Since most buyers work during the day, that means agents are working nights and weekends. Since everyone else works during the week and has weekends off, how much time does that leave for a spouse, family and friends?

Have you ever noticed how many divorced real estate agents there are? Frankly, it's a tough life. I like having my nights and weekends with my family, how about you?

So the phone rings and the agent has a potential buyer or seller to work with. Their expensive  marketing campaigns have finally shown results. In their business, there's no guarantees. Sellers can change their minds at any minute and decide not to sell or change agents at whim. Remember behind every door is another agent saying, I'm the best Realtor, use me! 

Buyers turn out to "just be looking" after spending weeks with an agent. Gobbling up precious time they could have invested in a live prospect, to say nothing about wear and tear on that expensive leased car and set of new tires. 

If everything goes right and the agent is able to finally bring a deal to the closing table, only then do they get a taste of success but not before paying their Broker and perhaps sharing that hard fought commission with others.  

Don't get me wrong, I've kissed some real frogs, over the years. I didn't just fall off the back of a turnip truck! Agents that were out to just get me to buy or sell without consideration of what was best for me. That just makes me more determined to treat a professional Realtor better.

I suggest instead of asking, am I paying my Realtor too much perhaps, it's not enough!

I've learned, if I want the best deal on a real estate transaction to be right up front with my Realtor. Tell her what my real budget is, that I'm only going to be working with her and I'm looking for a longterm relationship. In exchange, I'm looking for her to "give me her heart" and to be my partner in this transaction. I want her to know if she treats me right I'll be her customer for life.

The right agent will work their butt off for you because, a loyal client is hard to find! She knows the next time I'm going to buy or sell something I'm going to call her and doesn't want to loose a great client for the sake of a one-time commission. Successful Realtors know it's all about establishing a relationship with people that understand it's about the win-win.