Many people do not understand how real estate agents are paid. Did you think Real Estate Agents were paid a salary? Did you know most are paid on commission only? Did you know that means if they do not get it to a successful closing there is no payday?
How Real Estate Agents are paid
There is no reimbursement for time and gas money spent showing properties. There is no pay for the hours and hours spent negotiating contracts, doing the research required so they can give sound advice or the hours spent problem-solving. Being a Realtor is sometimes like being a fireman, you are always putting out fires and sometimes it only takes a little spark to start another big fire. There is no base salary for the multiple trips to the property, no overtime for the late night panic attacks. Sometimes Realtors have to be a marriage counselor along with all their other duties. It is a job where you have to wear multiple hats. It also helps if you love what you do because sometimes the work has to be written off as charity.
Realtors are paid on Commission only. They are considered self-employed, get paid on a 1099 do not have health care or retirement benefits and have to pay the extra self-employment tax.
Why most Realtors do what they do
You have to love your job if you are a successful Realtor. You have to love your job to be able to deal with irregular paydays. You have to love your job to be able to be the punching bag for everyone when things get a little sideways. You have to love what you do to be able to deal with all the unknown problems that come up. I have been doing this since 1993 and I still have situations that come up that I have to say “That has never happened before”.
We love what we do and yes we are paid well when a deal closes but we do have to wade through a lot of junk to get to the payday.
If you would like more information about the Real Estate Business just give us a shout.