What are you paying a REALTOR® for anyway?

Paying a REALTORIf you are Buying a home, most people feel as though their Agent gets paid for showing them houses. Whether we show you one house or four dozen, it has no impact on what we are being paid for.

If you are a Seller, many believe that the real estate professional is paid for marketing their home. But some Agents do extensive marketing and some do little. Some show the house many times, some only once or twice before someone makes an offer.

When it comes down to what the value is, neither of these cases is correct.

In either instance, with just a little practice, you could do those things competently yourself. With the advent of online sites that advertise MLS listings, you can look for houses that will fit your needs. As someone wanting to sell your home, there are any number of avenues that you can find to advertise your home for sale.

The real job of the real estate Agent begins when a prospective home or prospective Buyer is identified. From the time of client contact when negotiations begin, that is when you want the right real estate professional advocating for you.

In the State of Colorado, with a real estate license comes the privilege of a licensed Agent being able to practice law in the limited sphere of real estate. Therefore, from the time of identifying a property or a purchaser, the Agent not only is in a position to negotiate for a client, but from contract to close, has the responsibility to perform hundreds of tasks on either the Buyer’s side or the Seller’s side.

In most instances, however, the Agent does not get paid until a transaction closes. That means that there can be dozens of hours and hundreds of miles that are consumed, and if a transaction doesn’t close, the Agent does not receive a paycheck.

Marketing a home takes a lot of time, effort, and up-front money. I know of no other profession that will work for dozens or scores of hours and take such a risk prior to payment.

So if what you are really paying for happens AFTER you go under contract, make sure that you are comfortable with the experience and expertise of the person that you hire. Check their references and their track record. It will go a long way to making your real estate purchase/sale as smooth as possible.