Brian & Rita Burke's recent post about Can A Staging Company Charge a Success Fee? inspired this blog. I went to think really hard after reading their blog about what other industry/ professions would not charge a fee until success is seen and known?
When I walk into my doctor's office, I see a sign at the check-in window, "Payment is required at time of service rendered". Then, there was one time I remembered my vet fee was over $300 only to hear my vet said that he didn't know what was wrong with Maxx's limping front paw. I paid the electrician and the a/c guy a fee to show up - before any services are rendered. I guess I will continue to pay my painter whether or not my listing is sold and it is only fair to pay the stager his/ her fees for services rendered.
Real estate agents accept the responsibility to market the property the best way he/ she sees fit. Marketing costs and time spent on these efforts are typically monies that are paid by the agents before the property is sold. So, depending on how long it takes the property to receive a successful negotiated contract, agents are continuously marketing. Flyers, website and the most expensive of these are the real estate agent's time (depending on how much this agent earns an hour).
What I had described above is the direct costs associated with the listing. Then, there are other unseen costs such as marketing themselves in order to get the opportunity to list the property.
Buyer's agents also have their own costs such as gas. When gas was over $3.50 per gallon, the business cost suddenly became double what it was just a year ago. With the 2008 real estate conditions like it is this year, many real estate agents report that sales are worse this year compared to last. With the costs of everything headed up, the cost of doing business just increased tremendously.
All real estate agents work on the contingency that a house is sold. No paychecks are received until then. All efforts prior and during the times working with the clients are dependent on that one activity: signing at the closing table. I dont get paid until you CLOSE. Not many professions could make that statement.
If you like to gain more insights to a real estate agent's checkbook, read my previous blog here: Are Real Estate Agents pretty door openers? Insights into an agent's checkbook register. It is a small portion of what goes on behind the scenes.
Would your doctor do that? Would your painter, electrician or plumber do this? I guess this is just the nature of this beast. Less real estate agents would get out of the business if we charge a service fee instead of a success fee.
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I proudly serve and sell real estate in the northern suburb cities of the Dallas metroplex. If you are thinking about purchasing or selling your home in neighborhoods of Frisco, Plano, Dallas, McKinney, Allen, Little Elm, Prosper, Celina, Richardson, Dallas M-Streets, Dallas White Rock Lake area and other surrounding areas and more importantly, want to work with a local area expert, contact me at your earliest convenience.
It is a competitive market, hence it is important that you choose to work with the realtor who knows these communities like none other. I employ a systematic market approach in selling your home - an intentionally unique proposal that most real estate agents do not use. If you care to be on your way to a successful closing, contact me immediately to see how different my proposition will be.
Realtor®/ Broker of 3:16 team REALTY
Copyright © 2008 by Loreena Yeo (3:16 team REALTY). I Don't Get Paid Until You Close.
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