Where Does Your 6% Go?
Some people try to venture into the world of real estate by selling their home or property themselves, commonly known as a For Sale by Owner (FSBO). One of the reasons for selling themselves is that they don’t want to pay a commission. They want to be able to make the most amount of profit on the sale of their property. I definitely get that! However, I think if they understood what that 6% goes toward, they would be more inclined to use a licensed Realtor.
Multiple Listing Service (MLS)
Most Realtors are members of a local and/or national MLS sites. For example, HomeLand’s Principal Broker, Andy Flack, is a member of at least 11 MLS sites each requiring their own membership fees. That totals tens of thousands of dollars each month to get your listing, depending on the property type, in front of as many eyes as possible.
The good ole fashioned newspaper hasn’t died yet. For the older generation who may not be on Social Media might still go to the newspaper to look for properties for sale or rent. Not to mention, those beautiful magazines like Texas LAND that highlight the more high-end properties – they’re not cheap.
Social media has become the popular form of advertising practically anything mostly because you can do it for free or inexpensively. But for us, we want to make sure our clients’ property is being seen so we do pay for the boosting and sponsored ads.
We utilize an email marketing company to send our weekly company email blast. We also utilize other email marketing companies that are designed to market to specific audiences, local and national.
At the permission of the Seller, Realtors will also put a For Sale sign on the property. Sometimes those get stolen or damaged.
The Texas Real Estate Commission and the Texas Realtors association have developed standard industry forms and contracts that Texas Realtors are required to use. Attorneys have reviewed and continue to review them to ensure they are keeping up with current laws and industry guidelines. These forms are also to protect all parties involved in a real estate transaction – Buyer, Seller, Realtor, Tenant, Landlord, etc.
Every Realtor uses their personal vehicle for meeting clients, showing property, attending closings, etc. Thankfully, they can write a portion of that off. But for a company like us that covers most, if not all, of East Texas, that is A LOT of miles and time.
Who Said 8a-5p?
Realtors do NOT work 8:00 am to 5:00 pm. They are “on call” nearly 24/7 and they are typically accommodating the schedule of their client(s). If their client has an 8-5 job, then they mostly likely can’t view properties during the day – it’s usually evenings and/or weekends. Those evenings and weekends are also times away from their families.
In situations where the Buyer and Seller are being represented by their own individual Realtor, that 6% gets split between both Realtors. That leaves 3%. Depending on the Brokerage that Realtor is a part of, their company will require a certain percentage of that 3%. That amount can vary between companies. So, the Realtor may not even receive the full 3% that they earned.
Several of our Realtors have more than 30 years of experience in this industry and have most likely seen and experienced just about everything you could possibly think of (and not think of). Trust me, we could tell you some stories! Our agents are skilled to research your property (or property of interest), appropriately price your property for sale based on local market value, negotiate price on your behalf, and recommend the best companies for inspections, appraisals, surveys, financing, title work, etc. They can walk you step by step through the process of buying and/or selling your property no matter how bumpy it may get along the way. They can handle it!
Knowledge, Experience, Professionalism, PROVEN