There are many misconceptions about working in the real estate industry and I always operate under the premise that you simply don’t know what you don’t know.
With that being said, I wanted to shed some light on my experience working as a real estate broker. Reality TV and social media can make real estate look glamorous, but it’s a tough industry. It’s a 24/7 job with a lot of up’s and down’s. I don’t share the nitty gritty of my job because it’s my job as the broker to make things as smooth as possible for my clients. I’m debunking 5 pre-conceived notions people have about real estate brokers.
We make our own schedules…
This is the #1 thing people say to me…”Oh it must be so nice to make your own schedule as a real estate broker.” I have to laugh at this, because as brokers we’re always at the mercy of our client’s schedules. Much of my business takes place on nights and weekends. In many instances, time is of the essence and if you can’t accommodate a showing request, another potential buyer could snag the property first.
I’ve left baby showers early, missed bachelorette parties and brought my computer to date night all in the name of real estate. So yes, on a Wednesday morning I am able to spend time with my kids, but I’m on-call 24/7 finding properties for clients, photographing & staging listings, working with attorneys, marketing properties, writing contracts, etc. If I don’t work, I don’t make money – it’s a simple equation. I love every minute of it and wouldn’t have it any other way, but I don’t have the luxury of making my own schedule.
Brokers receive kickbacks from lenders, attorneys, inspectors, etc…
I have a dream team in place, because they are the people I trust to help my clients make it to the finish line. The home buying and selling process is a collaborative effort. I have a great relationship with my exterior team, but I don’t receive any sort of compensation for recommending them to clients. What I receive is knowing that my clients are in the best hands possible and that is worth more to me than any amount.
Marketing expenses aren’t the broker’s responsibility…
This is false. All marketing expenses are brought to you by yours truly. We pay for professional photos, floor plans, video production, 3-D tours, digital marketing campaigns, broker open house events, design and printing of brochures, etc.
The first showing of your home now happens online and you need to make it as appealing as possible to entice buyers to come see the property in real life for a 2nd showing. Your marketing strategy is more crucial than ever.
The broker keeps all of the commission…
First of all, it’s helpful to know that in IL the seller of the property pays the commission and it’s then split between the listing and buyer’s agents. If you’re a buyer there’s no fee on your end to work with a real estate broker.
A portion of a commission check goes to our brokerage to pay for admin fees. And since we are independent contractors we have to withhold our own money for social security and taxes. We make a living just like everyone else, but our check doesn’t come every two weeks and it’s possible to go months (yes, plural) without a paycheck.
After brokerage fees and taxes are accounted the remainder is for your broker.
One broker is as good as the next…
All brokers are not created equally. The right broker can save you time, money and be protective of your best interests. You need a broker who is well versed in their market, has deep relationships with the other local brokers and has insider knowledge on upcoming deals and past transactions that can’t be explained just by looking at data online. A strong marketing and social media plan are key too. You need someone well versed in every aspect of the transaction.
