The Real Estate Encyclopedia
Are Real Estate Agents Worth What They Are Paid?
Category - Home Buying Questions - General Home Buying FAQ's

A professional real estate agent is usually worth the commission they are paid. Clients must remember that an agent’s many hours of dedicated work are only compensated upon successful sale of the property and often many hours are spent on a transaction that does not happen.

Thus an agent could provide many hours of service and have applied his/her expertise to guide the client through the maze of requirements involved in the sale of a home, while carrying expenses out of his/her own pocket (e.g., advertising; MLS membership fees; traveling expenses; office supplies, etc) without being compensated if the house does not sell. According to a survey conducted by the National Association of Realtors® the typical Realtor® worked 46 hours per week, while one in five worked at least 60 hours per week.

Important to note is that the commission paid out is a gross amount, which is shared between the listing brokerage and the listing agent, the selling brokerage and the selling agent. Also to be deducted from the commission are the amounts payable to franchisors, the MLS, sometimes a referral fee, marketing expenses and advertising related to the sale of the property, and of course all the normal overhead and administrative costs associated in running a business.

According a survey conducted by the National Association of Realtors in 2005 the median personal income earned by a Realtor® was $49,300. This as during the height of the housing boom.



 

 
Category(s)
Home Selling Questions - Agent, Offer & Commissions FAQ's
Home Buying Questions - General Home Buying FAQ's
Home Selling Questions - General Home Selling FAQ's
[edit]
Home   |   About Us   |   Contact Us   |   Patrons   |   FAQ's   |   Site Map
© 2008 - All Rights Reserved.
Thank you for visiting Real Estate Wiki - the leading dictionary, directory, encyclopedia and glossary for the real estate and mortgage industries .