There’s a lot of movement within the ‘real estate agent’ industry these days. Agents are dropping like flies, and then having a rejuvenation if/when they choose another company. It’s not as easy as it looks.
Some agents don’t feel comfortable with a huge company brand name on the ‘For Sale’ sign, with their name appearing in a really small font somewhere on that sign or on the sign riders (the smaller rectangular signs that either hook onto the For Sale sign or finds a home on top of the crossbar of the post planted in the ground).
Sometimes the companies take a percentage of the commission (over and above the designated split), say 6% is taken off the top and goes directly to the company. That would pay for the office, the rent or mortgage, the employees/support staff, the copy machines, the printers, the electricity the heat, and on and on.
Some agents are looking for higher splits (the commission that is earned by an agent in representing the buyer or the seller, or even both parties in one transaction). A certain percentage of the commission goes to the company and the balance goes to the agent.
Sellers can negotiate the commission before they sign the listing agreement. It can be in fixed dollar amounts, but usually, it’s in the form of a percentage of the sales price.
Normally, agents start at a low commission split, and once they obtain a certain dollar amount in earnings…the split can increase as the agent brings in more dollars. In most cases, there is an upper cap limit that the agent can earn. OF COURSE, if the agent is being sought after, that high split make a difference…but the agent needs to perform to maintain that cap.
Sometimes several agents may be interviewed by a prospect. S(he) may not even know who those agents are. And no, it’s not rude for the agent to ask who the other agents are. And no, it’s not rude for the prospect to decline that info.
Then there are companies that offer incentives: not for listing/selling the property, but for finding other agents to work for the company, and if those agents produce, then the agent who drew them in, gets a portion of the new agent’s split. I liken this to multi-level marketing. S(he) who is the first draft pick, makes the most bucks, and those below can never reach that pinnacle.
Bottom line is…real estate is not a hobby, it’s a way to make a living. For some ‘making a living’ can be tough. But it’s also a way for that living to turn into knowledge to become a real estate investor, for him/herself, or for his/her clients.
Actually, real estate is a way of life….helping folks find homes and or investments, doing a lot of listening, and asking loads of questions to be able to find out what the customer’s goals are. And BTW…an agent needs to love that work.
Alameda Real Estate this Week (as of Friday eve)
Please check out my new listing @ 912 Del Mar
and come over on Sunday between 2-4 and say hi!