THE TRUTH ABOUT REALTORS^®
THEIR INCOME, EXPENSES, TAXES...

AND THE GOOD, THE BAD AND THE UGLY AMONG US!

As in any profession, there are Realtor^® colleagues among us who do not measure up to the high level of standards that are expected of us by our clients.  I'm sure you know someone on your job who is like this.  They show up at work and do little while you and your colleagues do all the work.  It's no different in real estate.  Some agents exit the business as quickly as they got in and it seems much of the general public have little respect for those of us who have sustained a long-term career in this profession.  This concerns many of us who work hard and diligently to protect our clients and their best financial interests.  Many of us reach well beyond our easy-to-obtain license to educate ourselves by earning distinct designations that will better serve our clients and protect ourselves in the process.

Additionally, a topic seems to be our paychecks.  Since our paychecks are public knowledge, most folks believe we earn too much for the service we provide.  Little does the general public understand that not every client we work with Nets us a paycheck.  And not all listings or contracts we write (and sometimes we write up to 5 offers for the same client) even make it to the settlement table for various reasons outside an agents control.  Many of us who have sustained careers in this business can spend upward of 9 months working a Short Sale transaction to then see it go to the bank and earn zero dollars for trying to help our clients as well as the banks.  And this doesn't just happen once in a year.  In this market, it happens multiple times in a year.  How many times do you work for months with a client or employer for a zero paycheck?

The general public also does not understand the Realtor^® fees and marketing costs of being in this business.  Business marketing alone can run $10k - $20k annually and licensing costs upward of  $3k annually.  On top of this are typical business expenses that can also run into the $10k-$20k range. Then, of course, we can't leave out Uncle Sam.

CONCLUSION
For those who believe making a living in real estate is pie in the sky is misinformed.  It's costly, stressful, frustrating, and not nearly as lucrative as you believe.  There is a wide inconsistency between public perception of a Realtors^® income level and the reality at the end of the year after expenses and taxes.  Why do those of us who have survived stay in this industry?  Because we love the business and the people we meet and make friends with.  As with any job, it has it ups and downs.  But trust me when I say... we earn every penny in this business and when a buyer asks me to share my paycheck, I find it insulting.  What would your reaction be to someone asking you to share your paycheck to earn their business?  It feels like someone asking you to disrespect yourself.

THE GOOD
Those of us who have taken continuing education classes and earned distinct designations know how to serve and protect our clients as well as ourselves.  We are savvy in business and marketing which is the cornerstone of sustaining a career long-term in real estate.

THE BAD
It is quite common for someone to believe a career in real estate is pie in the sky, and proceed to licensing classes and obtain a license yet do nothing more to enhance their education beyond the simple process of obtaining a license.  Little do they realize that becoming a real estate agent is taking them into the realm of self-employment, expenses, taxes..  and if they are not business savvy and have funds to sustain them for at least several years, they will not succeed.  They seek out all their relatives and prior colleagues to serve as their learning curve.  Yet, when they learn that relatives and friends don't necessarily want to be a part of their learning pool, they get out of the business as quickly as they got in but typically after a few disgruntled clients where things didn't go quite as planned.  These would-be Realtors^® leave in their wake just enough dissatisfied clients to spread a lot of bad news and as we know, bad news travels faster than good news.  And just as in any business, a bad few give the rest a bad rap.

THE UGLY
Again, just like in any profession, we have among us those who have very little business ethics or morals.  These are the agents who steer transactions to their own brokerage and deny other agents and their clients a fair shot at their listings.  These agents do not return phone calls and make it impossible for you to assist your clients with their listings.  In this current market, I see this more often than not.  These agents beat to their own drummer and do not follow the rules and regulations that the National Association of Realtors nor the local boards put into place for all licensed agents.  These ruthless agents know that most colleagues in the business will not file complaints because there is so much paper work to fill out and is time-intensive and typically result in little disciplinary measures.  I have had many buyer clients experience this lack of professionalism on the other side of the transaction which cloud's my clients perception that most agents are like this, when in fact, there are a lot of good agents out here.  But again, just like in any business, there are a lot of bad ones too.  So, the important lesson here... choose your agent wisely.

CONCLUSION
In short, when you begin to search for an agent or property, you are best served by securing a Realtor^® who has tenure, references and distinct designations.  This translates into a level of dedication to their profession, competency with continued education and a level of service that you will want and need in this difficult market.  Not having your own agent is unwise since the other agent represents their client and not you.  In a purchase, you pay nothing for your own agent.  If you are selling and also making a purchase, you can expect a discount in the amount of commission the agent charges on the selling side since you'll be giving them the opportunity to earn a commission on the buying side.

Call me if you have any questions.  I welcome the opportunity to serve your real estate needs!