DON’T USE A REALTOR!
Those who have been following my blogs or have known me for a while probably think I am off my rocker and have lost my mind. Well, maybe, but that’s another story for a different blog. I am writing to let you know that there are some people that should not use a Realtor. In fact, if you are this type of person, I beg you – DON’T USE A REALTOR!
I have explained how Realtors get paid but what about how they DON’T get paid. Here’s a question: Should they always get paid? Let’s explore some scenarios.
Buyer hires Realtor. Realtor finds the property, writes and negotiates the offer. Property closes. Realtor gets paid.
Seller hires Realtor. Realtor markets the property and gets a contract on the property. Property closes. Realtor gets paid.
Buyer hires Realtor. Realtor finds the property, writes and negotiates the offer. Property does not close. Realtor does NOT get paid. Say what? The Realtor does their job, and, due to no fault of their own the property doesn’t close and they don’t get paid? Right.
Seller hires Realtor. Realtor markets the property and gets a contract on the property. Property does not close. Realtor does NOT get paid.
OK – I know what some of you are thinking. The Buyer buys another house and that Seller just sells to another buyer and the Realtor eventually gets paid, right? WRONG. If that Buyer walked away because of an inspection contingency then got cold feet, decided to rent, lost their job, moved to another state, failed to qualify for a loan, etc. they may not buy again. And that Seller, may have got cold feet. They may have decided to remodel and stay in their home because the process made them realize what they had. But wait, there’s more!
Buyer hires Realtor. Buyer doesn’t really know what they want or in what area they want it in. Realtor shows Buyer different things in different areas and buyer doesn’t make a move to buy anything Realtor shows them. Buyer walks into a model home of a new development in an area they have never looked and writes a contract with the onsite agent to build a new home. Realtor does NOT get paid.
Again, I know what some of you are thinking. “The Realtor didn’t find the property for them – they shouldn’t get paid!” Maybe not. But think about all the hours that Realtor spent networking, scouring online resources, driving neighborhoods, the late nights they spent catching up on other things because they dropped what they were doing to make sure that Buyer saw a property that they ultimately ended up not buying.
Think of it this way. Your friend works for a company that pays her at the end of each month. The last day of the month comes and the employer says, “oh, sorry, we aren’t manufacturing that part anymore and since you were still making it, we’re not paying you”. What? They didn’t tell her they weren’t manufacturing it anymore. They just let her work all those days and all those hours and didn’t say a word. You would be infuriated for your friend. She did all that work and got nothing for it. They move on and she is left wondering how she is going to pay her bills.
Now, hopefully Realtors are better and smarter than to live paycheck to paycheck but you get the idea. These are their livelihoods. If you think they are not working for you – talk to them about it. I agree that they chose the profession and they know the risks. However, if you feel you are qualified to do it on your own, don’t think a Realtor should get paid if they do hours of work but don’t ultimately find you the house, or generally just don’t respect what a professional Realtor brings to the equation and don’t think they are worth what they make, then, please – don’t use a Realtor.
Michelle Froedge is a residential Realtor and Principal Broker in the Greater Nashville and Williamson County areas of Tennessee. “Mom” to four-legged fur babies, Tyler and Livvie, Auntie to Zelamie, she is a vegetarian and sings in her spare time. Michelle has lived in Nashville and Franklin since 1997 and has been selling homes since 2004.