What It Takes To Earn Our Commission

Some owners think a Realtor’s commission is too high a price to pay. Here’s the real story on how we actually earn it.

It’s rare to find a real estate agent who works on a salary. In fact, as far as residential real estate sales goes, they’re practically a non existent entity.

Team Avalos Real Estate Santa Clarita
Rose and Carlos Avalos

Real estate agents (Like us) earn a living through the sale of homes…period. The commission amount usually equals a small percentage of the home’s total selling price that is negotiated between the seller and the agent. Even still, in some homeowner’s eyes that’s a lot of money. So we’ll break it down a bit more for you to show you what (and how) we actually earn when escrow is closed and we hand the keys to the buyer. Oh yeah, we don’t get paid a dime until escrow is closed!

Commission Split Between Listing Agent and Buyer’s Agent

Real estate agents who work with buyers also work on commission, and without this networking opportunity, the number of buyers coming through your home may be extremely limited. Offering a portion (usually half, maybe a bit more, maybe a bit less depending on the situation) of the total commission to an agent who brings a buyer is standard fare in the real estate world.

Okay, we’re down in commission by half…so what?

Marketing Your Listing

You know that sign we stick in your yard when your home goes up for sale? It costs money. You know those flyers we created to mail out to our database? They cost money (As well as the postage to send them). How about our website which also contains our Featured Listings (Such as yours)? Yep. It costs money! We also pay fees to our national, state, and local real estate boards so that your home will appear in the Multiple Listing Service. Print ads, web ads, social media ads, etc. also cost money. All of that comes from the commission we earn…before we even earn it! Also, if the home doesn’t close escrow for some reason, we don’t get it back.

Transaction Co-ordination and Office Staff

In many cases, agents will contract a Transaction Coordinator to insure all documentation, timelines, contingencies, and escrow instructions are met, which can greatly decrease the level of stress involved when it comes to getting escrow closed. In other cases, agents have part-time, or even full-time office staff to help keep their business organized, marketed, and continually growing. Yes, this money all comes from commissions generated by the sale of homes, and nothing else.

Our broker gets a little bit, too!

The real estate brokerage where the agent does business usually will get a small percentage of the commission as well. This may vary from company to company. In other cases, the brokerage charges monthly “desk fees” and will let the agent keep the commission. Either way, this is how they stay in business.

Let’s not forget the little things!

Ongoing training, vehicle and office expenses, license renewals, etc. all come out of our earned commissions as well.

Let us show you exactly how WE earn our commission!

Team Avalos has an incredible track record of success helping both home buyers and sellers achieve all of their real estate goals. Let us show you how we can help you achieve your goals. Contact us today for a no obligation consultation.

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