Real estate agents only get paid for the results they produce. The only thing that happens for a Kissimmee real estate agent at the closing table is the reward for the hard work that came before. Simply put - if it doesn’t close, real estate agents don’t get paid.
Let’s look at what factors contribute to a real estate agent’s pay.
Education, Training, and Licensing
Time is a big factor for real estate agents. To begin with, before they can even sell their first home for sale in Kissimmee FL, they invest in training and educating themselves to get there.
Every agent has to get a real estate license, which takes a lot of time, money and energy. But it doesn’t end there. It also takes time and money to maintain a license.
Agents are required to complete forty-five hours of post-license education and fourteen hours of continuing education in order to renew a license (this can differ from state to state). All of this time spent on their education will (hopefully) pay off when they can hit the ground running and start selling homes.
Real Estate Market Knowledge and Research
Their education and training continue through researching the market in which they’re working. Research is key to many parts of the real estate agent’s work. They have to know market factors, information on local factors (schools, shopping, commute, walking scores, and more). Pricing is based on comparable properties and the agent needs to know the details. That takes time, too.
Researching sold listings on the MLS is part of it, but they also have to research tax records for sales that were never listed. Digging into county records to find information about easements, construction, and even potential building projects can influence the price a house will sell for.
Real Estate Marketing Costs Money
Once a listing agreement is signed, there are costs associated with photos, videos, advertising, and marketing of the specific property. Professional photos are expected by agents and the public since most marketing starts online with great pictures.
Time Commitments During the Listing
Agents need to meet with prospective buyers, inspectors, appraisers and even contractors to make sure deals close. Lenders are key in most transactions, and the agent needs to make sure any buyer willing to make an offer is able to close the deal. Significant time can be wasted if the buyer is not fully qualified to close on the property.
Negotiation Skills and Advice
After offers are received, the agent must review each one for details that impact the deal. Price is part of it but so are concessions such as closing costs, inspections, personal property included in the deal and the list goes on. Reviewing each offer and delivering the details to the seller all take time, knowledge and sometimes intuition. Agents are charged with determining which deal has the best chance of closing AND meeting the seller’s goals?
Negotiation on the seller’s behalf is also important to make sure they can get the most for their house. Most sellers want the agents to negotiate for them, or at least give solid advice and perspective, to make sure they got a good deal.
Real Estate Agents Are Employers, Too
The cost of doing business for many agents includes staff – the people who help with the details. For example, an agent might employ an assistant who manages a busy schedule, appointments and makes sure things run smoothly. A transaction coordinator can be a big help if the agent is busy doing deals. Even a showing assistant might be needed to do an open house at times the agent might not be available.
Clearly, time is valuable, and it’s best if the agent has someone to help. However, all this support costs money, even if there is no closing in the end.
Agents are usually self-employed, which means no paid vacation, no PTO, no paid holidays. It also means they are responsible for self-employment taxes, income taxes, payroll taxes (if they have employees), and the list continues.
There are usually professional fees, membership fees, and office fees and/or rent due every month. Those bills are due even if there are no closings.
Why Do Agents Go Through All of This?
Usually, it’s because they love it and love the freedom of being their own boss. They love helping people with the largest purchase of their lives. They love creating new relationships, making new friends, and being the “straw that stirs the drink”.
Much of what agents do goes unnoticed, but it brings them great satisfaction when it all comes together. The buyer gets the keys, and the seller gets the check. It’s all worth it in the end.
At Florida Realty Marketplace, our real estate agents aren’t in it for the paycheck. They genuinely want to help their clients get the best possible deals and find their dream home. Contact us today to speak to a real estate professional.