How much do Real Estate Agents make? It's one of the most controversial questions around! Even amid COVID-19 you can still count on this question being a hot topic. Maybe even more so then ever as everyone is struggling to keep their head above water with "self-isolation" in full affect!
TV shows on HGTV and on Bravo would have you think that being a Real Estate Agent is so glamorous or that "house hunters" look at 3 homes before making their decision. Oh, and that every home we list is worth $20M! Wrong! This isn't Million Dollar Listing LA! Being a Real Estate Agent is not easy. Especially, in a hot market like Dallas. You have to work your tail off to get noticed from buyers and sellers. There are over 30,000 Real Estate Agents in Dallas! It is not for the faint of heart. Also, companies like Zillow are trying to get rid of the Real Estate Agent all together by making the entire home buying experience from your computer. This is not realistic tho. None of it is! Being a Real Estate Agent is one of the hardest jobs!
Buying a home is one of the biggest experiences of your life! It is an emotional process that requires a lot of work. It takes real human interaction. Being a Dallas REALTOR® is a full-time business. You work as an independent contractor with no health insurance, quarterly taxes, quarterly dues, overhead, no benefits, and 100% commission based. You run your own business just like any other small business. It takes a lot of hard work. So it should go without saying that Real Estate Agents get paid the big bucks!
Well, if you though we were rolling in the cash then you were wrong. Real Estate Agents make a percentage of the sales price of a home. Normally it is 3%, but everything in life is negotiable. That means your commission.
Buyers and sellers are always wanting to save a buck. They are spending the most money the will ever drop on a purchase. Not to mention that they have a million other expenses involved with buying or selling a home. It is not cheap. So your commission is always on the chopping block to offer relief. I've been in many situations where my commission has been reduced to only a few thousand dollars. Almost 50% of my commission disappears in the blink of an eye. A few thousand dollars sounds like a lot of money tho. Right? Well, when you owe your brokerage a cut, the IRS a cut, and then reinvest back into your business; you are left with barely enough to pay your bills. Your paycheck can barley pay one months worth of bills in many cases.
Most Real Estate Agents make 3% on every sale. Which is more then enough for helping you find the home of your dreams. 3% is standard. However, in todays real estate market that is very likely. Real Estate Agents a lot of times are treated like the "bad guy" for not offering to throw in a percentage or two to the client. As if we are being greedy for trying to make a living. Also, a lot Real Estate Agents who are competing for a big listing will offer to throw in part of their commission to try and get the listing. How much a Real Estate Agent Makes is one of the most unbalanced forms of payment ever! As a Real Estate Agent who loves what I do, it's what we signed up for tho!
Being a Real Estate Agent is hard. Right now we are facing a Coronavirus Pandemic where everyone is being asked to stay inside. No one wants to buy or sell a home. So that makes things harder. We have to put food on the table, but our paycheck is never promised. However, life goes on. We will make it out of this economic situation together. Just remember that buying the home of your dreams is no east task. There are a lot of things that go on behind the scenes. The Real Estate Agent helping you is working non-stop to give you that dream. They are a small business owner trying to make it to the top!
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