When hiring a Real Estate Agent or REALTOR® to represent you as a Home Buyer, Home Seller or Home Renter, you will be paying a Real Estate Brokerage fee for their services.
Here are 3 Important Things to Keep in Mind about Real Estate Agents/REALTORS®:
As you research and interview Real Estate Agents/REALTORS® for the job, it is always important to know 5 things about them. For instance, they are sub-contractors of the Real Estate brokerage firm that they represent. What does this mean? This means that they are not considered “employees” and therefore do not get a weekly or biweekly paycheck from the Real Estate firm. Because of this, they charge for their professional services just like any other service professional would (i.e. Attorneys, Accountants, Tax Professionals, etc.).
As an industry misconception, there is a common belief that many have. It is understood or perceived by many consumers that Real Estate Agents/REALTORS® work for free. It is important to keep in mind that everyone engages in employment in different ways. Generally, an individual would work for a company/organization and receive a paycheck for hours worked either weekly or biweekly. For small business owners, their pay is structured differently depending on the way payroll is set up within their business. As a self-employed individual or free-lancer, you receive pay for services or projects performed in advance or after completion.
In Real Estate, a Brokerage Fee is the term used by the Industry to charge for Professional Services performed by the Real Estate Agent/REALTOR®. It is not at all uncommon for this to be discussed at the very beginning of the process. Why? Just like any other industry, when you seek to hire a Professional, there is a fee that comes with their service. Real Estate is not the exception. A Real Estate Agent/REALTOR® will charge a Real Estate Brokerage Fee as payment for their Real Estate Representation Services.
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