While I was distributing my flyers in one of my neighborhood streets, this nice older lady and her "unleashed fangy growling" dog were just coming out of the house... After I safely unfroze, I introduced myself and we started to small talk about Real Estate. She said that she had the"no soliciting" sign at her door, which I hadn't seen yet! She told me that Real estate people actually ask for way too much money with their percentage. She said: "Why should you get so much money for doing nothing other than putting a sign up for one day and the house gets sold by itself in a few days, in this neighborhood? Except for the "for sale by owners", they take longer for some reason..."
I would say the same of doctors... you go see them, they say open your mouth and say ahhh, they look into your eyes and ears, tap here and there, and give you a prescription for pain reduction. Five minutes- max, when you find a doctor, that is... yet their bill is not questioned, when it has been questioned we have had doctors going elsewhere. Or, they can always ask for extra fees, if it's not covered by Health care....
I would say the same of lawyers, you go to their office and they start charging by the minute, as soon as you open your mouth... the same for other professionals, dentist, accountant, tax man, etc, etc... They ask for different prices, but always between a certain range.
Yet, we REALTORS are not allowed to earn this money, that we deserve for our super efficiency and great MULTIPLE LISTING SERVCICE co-operation, or to enjoy the fruits of our labor in peace, when things come together more easily for us.
Let's enumerate all the reasons why this fee is what it is...
All prices quoted are past rounded guess-stimates, for current prices go to www.oreacollege.com
Real estate pre-requisite courses: 1, 2, 3 (residential) = "approximately" $ 400.00 each course, Real Property law= $ 400.00, Real estate (commercial) = $ 620.00, 2 other elective related courses, $ 400.00 each, 24 continuing education units required every 2 years, at roughly $40.00 per 3 credits. This is for a basic salesperson license.
When the pre-requisites are taken care of, then, there are applications to fill and licenses to pay, RECO $ 250.00 per 2 year, CREA $ 150.00 per year, Errors&Omissions Insurance $ 160.00, per year, the local Real Estate Board to Maintain, $ 350.00 per year, Geowarehouse-Terranet- MPAC $100.00 a year. Percentage fees and dues for the Brokerage name, office use fees. Variable approximately $ 200.00 a month. Business per transaction fees, $50.00 per sale, charities per sale, variable. and dont forget that the requested fee from the seller also pays the buyer's Brokerage commission. The fee belongs to the Brokerages and it is then split as per our contract % with our Brokerages...
Then there is the cost of doing business, Gas, business cards, Brokerage name signs, for sale, sold, open house tent signs, date and time signs, directional signs, name riders, flyers, calendars, knick-knacks and promotional give-aways, advertising- on the trade papers, on tv, on the radio, on the road, kiosks, websites, trade shows and fairs, telephone directories, others...Yes the famous others, the times when we knock at doors, talk to strangers, ask for business, in all kinds of weather, 40 above to 40 below! You gotta have passion!!! Every salesperson must have many, if not most of these services in place to serve you, the public! It's just like having a buffet in a restaurant at a grand opening, you MUST have the food in place, whether the people come or not...it must look fresher and more appetizing than the restaurant next door, or the better service from the Brokerage/salesperson next door...
To come back to the fee, that isn't earned... Isn't it? What about all the times, we have shouldered the cost of your free advertising for months on end, when in spite of our better judgement and advice the client won't budge. What about the professional advice requested to get the house cleaned and in good repair. What about making perfect pictures to showcase the property to its best advantage, when the salesperson cares for her work. What about when the sellers want to keep the listing price higher, when we know that buyers will refuse to offer for it, and then blame the salesperson for the non-sale... If the price is perceived as low for the value - BY THE BUYERS - then, there will be a bidding war. If this outbidding doesn't happen, then the price is high!!
I'm willing to take into consideration your needs and your savings, but the same should go for me. Let's talk about your needs first! Then, we'll see! I'm easy to talk with, try me, 613-314-0700! Have a great day!