Why would a Realtor ask you for your Loyalty?
Whether you are a buyer or seller, it is likely that you will work with a real estate agent for your transaction. According to the National Association of Realtors’ 2013 Profile of Home Buyers and Sellers, 88% of home buyers worked with a real estate professional.
Like our counterparts in the mortgage industry, we work on commission and only get paid once the deal is complete or closes. We work hard for our clients and most the time front the cost of the transaction whether it is advertising the property or the cost of fuel to transport our Buyers across San Juan County in addition to a myriad of other things that come up. While it is understood that there is a cost to doing business that is the point it is a business. I have yet to meet a Real Estate Broker who wants to do their job for free, well really anyone who wants to do their job for free….
Unlike other professionals who bill their clients at hourly rates, real estate professionals are paid at the end of a sales transaction. If a real estate agent works with a buyer or a seller for weeks or months without a resulting transaction, they aren’t paid for their time. Brokers earn a commission based on the sales price of the home and receive that commission only after the transaction goes to settlement.
In most cases the commission is evenly split between the broker who is representing or working with the buyer and the broker who has the property listed for sale and is working with the seller.
This is something to keep in mind when making an offer in that the sellers will take the broker’s commission amongst other things into account when determining a listing price.
For Buyers: Find a Realtor that you feel like you work well with and will help you make an educated choice. Realtors in New Mexico are professionals who are licensed to protect the public. Most of the ones I know work hard to educate their clients to enable them to make wise choices. With that being said Realtors are people too and it is ok to find one that you gel with. Not everyone is everybody’s cup of tea and that is ok. When you do find one, be loyal to that one. They will work hard to help you find the property you are looking for and deserve to get paid for their work.
For Sellers: Finding a Realtor who you can trust, knows the market and will help you price and market your home competitively. They should be able to give you a net-out sheet that will show you what the cost of selling your home or property will be. The days of a broker putting a sign in your yard, going back to their office and waiting for the phone to ring are over. (If they even existed) Listing brokers are constantly looking for ways to innovatively market the properties they have been contracted to sell.
The take away? Whether you’re a buyer or a seller, the professional support of a Realtor® who represents your interests should be worth every dollar of the commission.