Real Estate Brokers Get a Salary, Right?
I often wonder how the public views the world of real estate brokers and the services they perform. A knowledgeable, friendly person drives you around and shows you homes you might be interested in buying. They send you selected listings over the internet in hopes that one of them might be your dream home. Then you go to an open house and fall in love with it and buy it from the broker who is there. Why? Because it was the easiest thing to do. That broker was right there, so why not? The deal goes through and it closes and you have your dream home. The broker who wrote the deal gets a commission check at closing and everybody is happy. Right?
But, what about the broker you were working with? You remember him or her, don’t you? The one who drove you around at no cost to you? The one who spent a lot of time and effort to try to find you the right home? How do they get paid for their time? Brokers spend a lot of time with clients and sometimes receive absolutely nothing for their time and expertise. Why? Because their client decided to buy from another broker at the last minute.
So often in the real estate market people just assume that a real estate broker offers a service and that service is done for free—kind of like a librarian. Librarians, however, receive a salary for their time and receive a paycheck from the library. Real estate brokers do not get a salary and do not get a paycheck from the real estate company they work with. They receive a commission check only when the real estate purchase-and-sale closes. They get no other compensation for their time spent with you, the client.
The example at the beginning of this post happens more times than you may think. So, the next time you are working with a broker, chosen because you feel that he or she has your best interests at heart, make a commitment to that broker. Work with that broker all the way to closing so that they receive compensation for their time with you. Ask for some of their business cards and carry them with you to that open house. Hand one to the broker who greets you at the door and say that you are working with an agent already.