Why Do Real Estate Agents Make So Much Commission?
They Don’t! According to this infographic.
The 1 line in the closing documents that we would love to remove, the Agent Commission. The thinking goes something like this, “$6,000 commission for what? I could have put a sign out in the front yard!”
I do think that the author of this graph is a little bit biased toward the Real Estate Agent, however it does a great job of helping us understand why the commission structure is what it is. The illusion that the Listing Agent simply puts a sign in the front yard and makes a couple fliers just is not accurate.
I don’t know about you but I am ok with paying a Real Estate Agent $29 an hour to sell my house.
Costs You May Not Have Thought Of:
- Brokerage Fees
- Marketing Costs (trust me this is more than you would think)
- Operating Expenses
- Training and Licensing
- Time Spent (Communication, Presentations, Open Houses, Showing, Monitoring Showing Feedback, Inspections, Analyzing Comparables, Transaction Handling, Title and Escrow)
*I am not a real estate broker