This article comes from https://lightersideofrealestate.com/ by Ryan Stewman that talks about the cost associated with being a Realtor. There are a lot of different cost that Realtors have to pay yearly. Let's go over a few.....
"1. Lockboxes:
These little guys, who hang on your door when your home is for sale, are not cheap. Think about it, these are boxes that are destruction proof and operate by satellite. Not to even mention the expensive supra key that you have to buy and have a subscription to, in order to unlock the boxes. Agents who have 10+ listings have thousands of dollars in lockboxes alone"
As an agent that has listings you have to have lockboxes. We have purchased many of these boxes for our listings and projects.
An agent can’t sell a home without a sign. Signs aren’t free. Much like lockboxes, when an agent has dozens of signs, they have lots of money invested. The design and shipping alone is hundreds of dollars. Agents use yard signs, open house signs, location signs, sold signs, pending signs, and in the HOA controlled neighborhoods, designer signs. It adds up very quick"
Signs cost around $80-$100 with the frame. They need to look good and attract attention. Drivers that pass by may call or tell their friends about it.
"3. NAR and MLS Dues:
The National Association of REALTORS® (NAR) is America’s largest trade association, representing over 1 million members involved in residential and commercial real estate. Not all real estate agents opt to join NAR and become REALTORS®, but the vast majority do. And guess what—NAR wants its money every month. And they don’t take IOUs."
"3. NAR and MLS Dues:
The National Association of REALTORS® (NAR) is America’s largest trade association, representing over 1 million members involved in residential and commercial real estate. Not all real estate agents opt to join NAR and become REALTORS®, but the vast majority do. And guess what—NAR wants its money every month. And they don’t take IOUs."
That cost over $1000 a year and you have to pay it or you can't sell real estate. having a license means there is an organization that keeps it together. MLS is a great marketing tool and that is where Realtors really have an advantage on non-Realtors. We know what homes are on the market!
"5. Marketing Materials:
The agent’s main job is to market. They market properties and themselves. Between websites, business cards, flyers, and belonging to sites like Zillow and Trulia, the average agent will spend almost $1,000/month on marketing materials. Some spend $10,000+ in marketing each month. It’s not cheap to spread the word about a multi hundred thousand dollar asset for sale"
The agent’s main job is to market. They market properties and themselves. Between websites, business cards, flyers, and belonging to sites like Zillow and Trulia, the average agent will spend almost $1,000/month on marketing materials. Some spend $10,000+ in marketing each month. It’s not cheap to spread the word about a multi hundred thousand dollar asset for sale"
Marketing is by far the biggest cost if you have an agent that is doing a lot of business. I spend $1000's of dollars a month. Websites, Videos and other advertising cost a bit to do. Without the marketing homes take longer to sell and for less money. The more people that see a property the higher the selling price usually is.
"6. Office Space (often included in an agent’s commission split—read more here)
Most people think that agents have a job with an office. They don’t realize that the broker charges for the office space and the furniture that occupies it. Just know this: Nothing is free in the real estate game. Not even a place to do your work. Agents are nickled and dimed to death. And as you know, commercial office space isn’t cheap.So next time you’re thinking about hiring an agent, and you think their fees are a little high, think of this list (which is just a fraction of what’s really paid for). They’re all things to facilitate properties getting moved faster and for higher dollar amounts.
It’s not easy, cheap or always fun being a real estate agent, but the smile we see on our clients’ faces when they buy a new home or profit from selling their old one, makes it 100% worth it.
This is another expense that we pay for also. The brokers of any real estate company takes a part of an agents commission. I have seen some Brokers take as much as 50% for office and other fees. EXP Realty has a totally different split they take 20% up to $16,000 and it caps.
Throw in the vehicle cost and you can see being a Realtor, at least a successful one takes a lot of money and time. We do love our jobs and get more Real Estate done than anyone else......
I'm Brett and I sell a lot of homes and would love to be your Realtor.... Call 216-703-5740 EXP Realty Ohio or 602-363-6551 EXP Realty Arizona.
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Thank you