I write this post as a means to educate all Real Estate buyers, renters and sellers alike. Although this usually comes up with buyers and renters, it’s important to understand a little more about the Real Estate profession.
In this industry, I have seen and heard enough to make me want to clarify this further.
Myth or Truth? Real Estate Agents work for Free.
- Real Estate Agents/REALTORS® are subcontractors of the Real Estate Brokerages that employ them.
- They are self employed and small business owners.
- They are not “employees” of their Real Estate firms. This means they do not receive a paycheck weekly, biweekly, bimonthly, or monthly from their employer.
- They do not get the typical W2’s for tax purposes.
- They are paid through brokerage fees for their Real Estate professional representation services.
- They are professionals that charge a fee for their services such as Accountants, Attorneys, Tax Professionals, etc.
- The brokerage fee charged by Real Estate Agents/REALTORS® for their services is paid by their represented client: buyers, renters, landlords, or sellers.
- Real Estate Agents/REALTORS® work for Free.
- As a renter, I can hire a Real Estate Agent/REALTOR® to find a home rental without paying a tenant brokerage fee.
- As a buyer, I can hire a Real Estate Agent/REALTOR® to help me find a home to purchase without paying a buyer brokerage fee.
- I can hire an Accountant to do my taxes for free.
- Attorneys can be hired to represent you in a court of law for free.
- As an employee of any corporation, business or organization, you willingly report to work everyday knowing that you work for free.
I hope this post was able to shed some insight on the common misconception of a Real Estate Agent/REALTOR®. Keep the above points in mind next time you consider hiring someone to assist your with your Real Estate transactions.
Do you have questions or comments? Please let me know!