How Do Realtors Earn Money?

 

It is common knowledge that a Realtor in the United States earns a commission, many buyers and sellers often wonder if they are worth the money we pay them.

What do Realtors do to earn their commission?  

Here’s a quick breakdown of what a Realtor does to earn the money home sellers pay them:

1. Realtors provide the most exposure for your house to get the most money that you can. A Realtor’s primary job is gathering as many potential buyers for your house as possible to increase your sales profit. Through their experience Realtors are skilled in utilizing data to help attract buyers you would not typically reach selling by yourself. Some buyers and websites only grant access to Realtors, or charge additional fees. By working with a Realtor you will be maximizing your exposure to these markets, in turn maximizing your profits.

2. When receiving and reviewing incoming offers on your property a Realtor’s negotiation skills are critical. Being able to breakdown and fully understand every aspect of a contract helps with negotiating for the best possible scenario and profit in selling your home. Over the years the purchase agreements, rules and laws, and overall access to information has made the offer process one of the most important periods of successfully selling your home and realizing your profit to the fullest extent.
3. Manage and coordinates all the parties involved in the sale of the property. Aside from negotiating your sale, the Realtor also takes on the heavy workload of coordinating and managing the viewings of your property, communication with mortgage companies, appraisals, inspections, title work, escrow, attorneys, and many other processes required to appropriately complete the transaction. With their industry knowledge and familiarity with the real estate process a Realtor helps their client save precious time, stress, effort, and money while ensuring they have as smooth of a sales transaction as possible.
4. They have great connections. Realtors, especially Tim Ali’s team who have been in the industry for decades, have built relationships with some of the best individuals in the industry. These relationships help to make the process less stressful on you.