Here’s What You Need To Know About Your Realtor’s Commission
With Halifax’s hot housing market continuing to keep home prices far above their historical average, there’s been some talk about how—and how much—Realtors are getting paid.
Carrie Knowlton-Trider, a Realtor with RE/MAX nova, has been hearing more questions than usual about her compensation—and she’s not alone.
“When it’s a seller’s market, that’s when people start to ‘comment’ and ask more questions about how much we make,” she says. “But when it’s a stable or buyer’s market most people don’t seem to care as much.”
“I’m in the service business, I did what you wanted, I did it quickly and efficiently. Normally if someone does something better than you expected you leave a tip…but we are often asked for a reduction instead.”
That makes sense: Realtors work off commission, so the higher the price of a house the more money they make. Why, some people ask, should a Realtor get paid more for doing the same job just because prices are higher?
But Knowlton-Trider says a Realtor’s job can change a lot based on what’s happening in the market. When things are hot, like they are right now, it can end up being a lot more work for Realtors. This market makes all buyer clients and their families stressed! I love my career, I enjoy working all markets but honestly, a buyers market is much less tense on the majority.
Break it down into individual steps and there are 183 things a Realtor must do to get a home sold. Depending on the transaction, some of those steps could take minutes, hours, or even days to finish.
The list includes everything from researching and preparing a “comparable market analysis,” to measuring lot and room sizes, buying ads to market the listing, and scheduling and reviewing the different types of inspections needed. While keeping in mind that we need to ensure we don’t make a grave mistake that will have us looking into our Errors and Omissions Insurance!
And that doesn’t include shepherding clients through the complex legal processes involved in buying or selling a home, as well as the mix of emotional support and advisory duties they inevitably take on.
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Right now, with housing inventory so low, Realtors are under pressure to ensure their clients have new homes to move into once their old ones are sold.
Recently, Knowlton-Trider says she took a client to 69 different viewings trying to get them into a new home. For others, she’s gone to extreme lengths to get offers in on time.
“This summer I wrote an offer at my daughter’s birthday party,” she says.
She had been working for months trying to get her client into a home, and she was so worried the client was going to end up without a place to live so there was no other choice.
I pulled into the driveway 20 minutes before the birthday party started. The offer had to be in by two o’clock and the party was at two o’clock, so I sat in the driveway and got it done,” Knowlton-Trider says.
She says that effort, and all the other little things Realtors do between when they first meet their clients and selling their home, is what your commission pays for.
The turnover rate for Realtors can be high. It’s a tough business and Knowlton-Trider says not all Realtors are created equal, there are different ‘leagues’…do your research!
She also firmly believes that, like her, most Realtors just want their clients to be happy and find a good home at the end of the day. I love my home and community, I want the same for my clients.
“You hear people talk about Realtors convincing clients not to buy certain houses because the Realtor won’t make enough money. Sometimes we do have to take a reduction in commission to bring a deal together,” she said. “ I’m not even thinking about my paycheck. I’m thinking about you living in this house six months from now being miserable because it doesn’t have any of the features you wanted. And I just can’t live with that.”
Do you have questions about buying or listing a home? Contact Carrie directly by e-mailing [email protected] or by calling (902) 452-9288.