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It's really a pretty simple concept. Anyone can put something up for sale, and
anyone can get someone to buy it. But with the complexity and legal ramifications involved in real
estate transactions today, few have the training, skills, expertise, and experience needed to
(a) market effectively, (b) tap into large buyer pools, (c) motivate/excite buyers,
(d) negotiate and close, (e) protect the interests of their client,
(f) manage the overall transaction process, from listing to closing,
(g) foresee, recognize and avoid risks, errors and pitfalls,
(h) assure that all current legal and contractual requirements and considerations are addressed, and
(i) yield the best possible result (contractually and financially) for the seller.
That's what EXIT REALTORs® do. They do it every day, and do it well.
And they've invested hundreds of hours and thousands of dollars in formal training (and
licensing) to be qualified and proficient. They're also required to continue
this educational process (an ongoing time and financial burden) in order to retain their
licenses and to keep abreast of the ever-changing laws and requirements related to real estate.
This enables EXIT REALTORs® to provide an extremely valuable service, without which sellers
(and buyers) can be at significant risk and/or may consummate a "deal" that is not in the best
interest of either or both parties.
There are many common misconceptions out there about people in the Real Estate profession.
As with any business where large amounts of money can be involved (buying
automobiles, services rendered by the medical and legal professions, buying/selling real estate,
and many others), someone, for whatever reason, will have a "bad experience", and the natural tendency
in telling others about what happened is to embellish or exaggerate. This is how stigmas become attached
to certain people and professions, and how all those jokes and stories get started. Real Estate professionals
are not immune to this evolutionary process, and have also been portrayed in negative ways that do not reflect
the extremely high ethical standards to which all licensed Realtors ® are held.
Here are a few commonly-held views and misconceptions about REALTORs® and the Real Estate profession as a whole:
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Sales commissions paid to REALTORs® are excessive, and bypassing them (as a FSBO)
will put more money in the seller's pocket (by keeping it out of the REALTOR's® pocket). |
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| Fact: |
Sales commissions compensate the REALTOR® and the brokerage in which they work
for significant expenses they incur (on the seller's behalf) in the aggressive and broad-based
marketing of the property. REALTORs® receive no compensation whatsoever if they fail in their
marketing program, but they still bear all expenses. However, when successful, the end result is
typically more money in the seller's pocket, due to the REALTOR's® experience and expertise
in marketing, negotiation and transaction process management, at a higher selling price, closely
aligned with true fair market value (rarely achieved as a FSBO) |
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All REALTORs® are greedy, overpaid, and rich. |
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| Fact: |
This perception is partly fostered by promotional advertising messages, such as
"Multi-Million Dollar Producer", intended to suggest that the REALTOR® is a "hot shot" and
can serve you far better than anyone else. Unfortunately, this message is frequently
misinterpreted as representing something related to the Realtor's ® own income level.
In fact, this simply reflects the REALTOR's® gross annual sales volume (total value of
all properties sold in a year), and with typical industry commission structures (with a
percentage of the REALTOR's® commission also going to the brokerage), the individual
REALTOR's® actual gross income from $1 Million in sales might only be somewhere in
the $25,000-$30,000 range. Not exactly "over paid", and this is before taxes and expenses
(paid by the REALTOR®). Undeniably, a few REALTORs® are very successful and
productive, and enjoy good incomes, but the vast majority make very modest earnings. |
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REALTORs® don't work very hard or long for their money. |
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| Fact: |
Much of what REALTORs® do is "invisible", representing many hours
of work "behind the scenes". This includes preparing listing presentations and
documentation, MLS data entry and updates, preparing, submitting and monitoring
(and paying for) all forms of advertising/promotion, managing access to properties
(keys, key boxes, security), coordinating all showings and appointments, working
with prospective buyers (directly or through other agents/brokerages), coordinating
all negotiation and documentation aspects of the offer/counter-offer/contract
process, coordinating all action items associated with the escrow/title process,
and assuring that their client's interests are protected. It makes little difference
whether a small $25,000 property or a large multi-million dollar property is involved,
since the process is essentially the same, and the same considerations apply to the
transaction's documentation and management. Most people are surprised to learn that
the overall listing/marketing/escrow process can represent over 60 hours of work for
the responsible REALTOR®, spread over a period of many weeks or months. |
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| There are many other misconceptions and assumptions out there, but
suffice it to say here that the vast majority of REALTOR® -managed transactions
are trouble-free and yield the best possible result for the client, while the majority
of FSBO transactions encounter numerous snags, surprises, liabilities and unnecessary
complications with questionable financial results. |
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