The Value of a Real Estate Agent

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Friends and family have been reaching out, asking me about the latest in the news, so I’d like to share what a friend posted. You know me; I think this sums up our role as real estate professionals well. Don’t misunderstand: while we earn compensation for what we do, there is also so much behind the scenes that is never fully articulated. We LOVE what we do, and we do it because we LOVE helping people, but there is almost always a huge misconception regarding agent tasks and how we get paid. Based on all available statistics, the average full-time REALTOR’S earnings last year was $31,900, working 40+ hours a week (notice I wrote full-time 40+ hours, not 0-20 hours a week), which is well below the living wage. READ THAT AGAIN. Most people I've spoken with over the past 35+ years in the business have a MUCH DIFFERENT idea of what we actually earn. As a REALTOR, we do not get paid an hourly wage or salary; we only get compensated IF we sell a home that closes. It’s essential to understand that we operate broker to broker. As agents, we could work with someone for days, weeks, months, or even YEARS with no guarantee of a sale ever. Essentially, we wake up each day unemployed, going on job interviews, and dealing with constant rejection. We dedicate time away from family, cover our time, gas, pay for babysitters, miss dinners and weekends, and rarely take vacations. When we do, it’s usually to attend conferences to educate ourselves about our job and better serve our clients, enhancing the benefits of real estate. We are on call 24/7, constantly needing to be available or we risk missing an opportunity. Once we do close a home, half of the commission goes to the other person's agent from the remaining half. We face numerous upfront expenses that must be covered before we even receive payment, including broker splits and fees, office rent and utilities, MLS fees, NAR fees, local association fees, E&O business insurance, extended auto insurance, self-employment tax, state licensing fees, advertising fees, showing service fees, website fees, assistant's salaries, showing partners, transaction coordinators, yard signs, photographers/videographers, office supplies, business cards, property flyers, electronic lockboxes, continued RE education, legal fees, and gas. Additionally, income taxes are not automatically deducted, so we need to set aside approximately 25-30%. And let’s not forget health insurance if we don’t have a spouse who provides it.

As your listing agent, I take on a multitude of agent tasks—90, to be exact—that go far beyond simply selling a home. Here are the key listing agent responsibilities I manage: 1. Prepare Listing Presentation for Sellers 2. Research Sellers Property Tax Info 3. Research Comparable Sold Properties for Sellers 4. Determine Average Days on Market 5. Gather Info From Sellers About Their Home 6. Meet With Sellers at Their Home 7. Get To Know Their Home 8. Present Listing Presentation 9. Advise on Repairs and/or Upgrades 10. Provide Home Seller To-Do Checklist 11. Explain Current Market Conditions 12. Discuss Seller’s Goals 13. Share Your Value Proposition 14. Explain Benefits of Your Brokerage 15. Present Your Marketing Options 16. Explain Video Marketing Strategies 17. Demonstrate 3D Tour Marketing 18. Explain Buyer & Seller Agency Relationships 19. Describe the Buyer Pre-Screening Process 20. Create Internal File for Transaction 21. Get Listing Agreement & Disclosures Signed 22. Provide Sellers Disclosure Form to Sellers 23. Verify Interior Room Sizes 24. Obtain Current Mortgage Loan Info 25. Confirm Lot Size from County Tax Records 26. Investigate Any Unrecorded Property Easements 27. Establish Showing Instructions for Buyers 28. Agree on Showing Times with Sellers 29. Discuss Different Types of Buyer Financing 30. Explain Appraisal Process and Pitfalls 31. Verify Home Owners Association Fees 32. Obtain a Copy of HOA Bylaws 33. Gather Transferable Warranties 34. Determine Need for Lead-Based Paint Disclosure 35. Verify Security System Ownership 36. Discuss Video Recording Devices & Showings 37. Determine Property Inclusions & Exclusions 38. Agree on Repairs to Made Before Listing 39. Schedule Staging Consultation 40. Schedule House Cleaners 41. Install Electronic Lockbox & Yard Sign 42. Set-Up Photo/Video Shoot 43. Meet Photographer at Property 44. Prepare Home For Photographer 45. Schedule Drone & 3D Tour Shoot 46. Get Seller’s Approval of All Marketing Materials 47. Input Property Listing Into The MLS 48. Create Virtual Tour Page 49. Verify Listing Data on 3rd Party Websites 50. Have Listing Proofread 51. Create Property Flyer 52. Have Extra Keys Made for Lockbox 53. Set-Up Showing Services 54. Help Owners Coordinate Showings 55. Gather Feedback After Each Showing 56. Keep track of Showing Activity 57. Update MLS Listing as Needed 58. Schedule Weekly Update Calls with Seller 59. Prepare “Net Sheet” For All Offers 60. Present All Offers to Seller 61. Obtain Pre-Approval Letter from Buyer’s Agent 62. Examine & Verify Buyer’s Qualifications 63. Examine & Verify Buyer’s Lender 64. Negotiate All Offers 65. Once Under Contract, Send to Title Company 66. Check Buyer’s Agent Has Received Copies 67. Change Property Status in MLS 68. Deliver Copies of Contact/Addendum to Seller 69. Keep Track of Copies for Office File 70. Coordinate Inspections with Sellers 71. Explain Buyer’s Inspection Objections to Sellers 72. Determine Seller’s Inspection Resolution 73. Get All Repair Agreements in Writing 74. Refer Trustworthy Contractors to Sellers 75. Meet Appraiser at the Property 76. Negotiate Any Unsatisfactory Appraisals 77. Confirm Clear-to-Close 78. Coordinate Closing Times & Location 79. Verify Title Company Has All Docs 80. Remind Sellers to Transfer Utilities 81. Make Sure All Parties Are Notified of Closing Time 82. Resolve Any Title Issues Before Closing 83. Receive and Carefully Review Closing Docs 84. Review Closing Figures With Seller 85. Confirm Repairs Have Been Made 86. Resolve Any Last Minute Issues 87. Attend Seller’s Closing 88. Pick Up Sign & Lock Box 89. Change Status in MLS to 'Sold.' 90. Close Out Seller’s File With Brokerage. By effectively managing these tasks, I ensure that my clients reap the real estate benefits of a successful home sale.

As your buyer's agent, I handle a wide array of tasks—90, by my count—demonstrating the extensive range of agent tasks far beyond what you might expect. I perform these duties every time I represent a buyer in their transaction: 1. Schedule time to meet buyers 2. Prepare a buyer's guide and presentation 3. Meet with buyers to discuss their goals 4. Explain buyer and seller agency relationships 5. Discuss various financing options 6. Assist buyers in finding a mortgage lender 7. Obtain a pre-approval letter from their lender 8. Clarify what I do for buyers as a realtor 9. Provide an overview of current market conditions 10. Discuss your company’s value to buyers 11. Explain earnest money deposits 12. Clarify the home inspection process 13. Educate buyers about local neighborhoods 14. Discuss foreclosures and short sales 15. Gather the needs and wants of their next home 16. Explain how school districts affect home values 17. Discuss the use of recording devices during showings 18. Learn all buyer goals and create a plan 19. Create an internal file for buyer records 20. Send buyers homes that fit their criteria 21. Start showing buyers homes they request 22. Schedule and organize all showings 23. Gather showing instructions for each listing 24. Send a showing schedule to buyers 25. Arrive early and prepare for the first showing 26. Look for possible repair issues during showings 27. Gather buyer feedback after each showing 28. Update buyers when new homes hit the market 29. Share knowledge and insights about homes 30. Guide buyers through their emotional journey 31. Listen and learn from buyers at each showing 32. Keep records of all showings 33. Update listing agents with buyer feedback 34. Discuss homeowners' associations 35. Estimate expected utility usage costs 36. Confirm the water source and status 37. Discuss transferable warranties 38. Explain the property appraisal process 39. Discuss multiple offer situations 40. Create a practice offer to help buyers prepare 41. Provide updated housing market data to buyers 42. Inform buyers of their showing activity weekly 43. Update buyers on any price drops 44. Discuss MLS data with buyers during showings 45. Find the right home for buyers 46. Determine property inclusions and exclusions 47. Prepare the sales contract when buyers are ready 48. Educate buyers on sales contract options 49. Determine the need for lead-based paint disclosure 50. Explain home warranty options 51. Update buyer’s pre-approval letter 52. Discuss loan objection deadlines 53. Choose a closing date 54. Verify listing data is correct 55. Review comps with buyers to determine value 56. Prepare and submit buyer’s offer to the listing agent 57. Negotiate the buyer's offer with the listing agent 58. Execute a sales contract and disclosures 59. Once under contract, send to the title company 60. Coordinate earnest money drop-off 61. Deliver copies to the mortgage lender 62. Obtain a copy of the seller's disclosure for buyers 63. Deliver copies of the contract/addendum to buyers 64. Obtain a copy of HOA bylaws 65. Keep track of copies for the office file 66. Coordinate inspections with buyers 67. Meet the inspector at the property 68. Review the home inspection with buyers 69. Negotiate inspection objections 70. Get all agreed-upon repair items in writing 71. Verify any existing lease agreements 72. Check in with the lender to verify loan status 73. Check on the appraisal date 74. Negotiate any unsatisfactory appraisals 75. Coordinate closing times and locations 76. Ensure all documents are fully signed 77. Verify the title company has everything needed 78. Remind buyers to schedule utilities 79. Ensure all parties are notified of closing time 80. Resolve any title problems before closing 81. Receive and review closing documents 82. Review closing figures with buyers 83. Confirm repairs have been made by sellers 84. Perform a final walk-through with buyers 85. Resolve any last-minute issues 86. Get the CDA signed by brokerage 87. Attend closing with buyers 88. Provide home warranty paperwork 89. Hand over keys and accessories to buyers 90. Close out the buyer’s file. Through these extensive agent tasks, I aim to highlight the real estate benefits of having a dedicated professional by your side.