Monday, March 19, 2012

The skinny on how Realtors get paid

Most Realtors in the business a little while have had the happy "client" tell them with delight that they bought a property through your brokerage!  With another Realtor!  Isn't that great?!  Of course a classy Realtor will congratulate the buyer and might use the moment as a teaching one...or not.  Some buyers have the understanding that if they purchase through a brokerage, all the Realtors benefit.  Not so, my friends. 

The only time a Realtor is paid is when they are on the contract of purchase and sale or have a referral fee due.  This, in BC, is a totally perfomance based business and reward.

Sellers in BC pay the commission from the sale proceeds of their home.  The commission is generally split between the brokerages (i.e. Sutton and Royal LePage) representing the listing Realtor and the buying Realtor.  If there is a referral fee due, that is accounted for (i.e. a Sutton office in Vancouver refers a client in the North Okanagan to a Realtor here, the Realtor would generally pay a 25% portion of their commission to the referring Realtor.)  Different companies have different approaches to how the Brokearge is paid, either by percentage or set amount per transaction.  After that all happens, the Realtor is paid!

Do keep that in mind, for instance, when one Realtor has gone far above expectations helping you.  Stick with them and don't make an impulse buy with someone else who happens to be more immediate.  Classy Realtors don't try to steal clients.  If a Realtor, who is not the Realtor you've been working with, trys to influence you to "buy now" and use them, you know without question you are not dealing with a classy Realtor!

Many of have had this call from people....they want to see a property on short notice, on a Sunday afternoon and have a ton of questions about it.  When you ask a few questions yourself you find this answer sometimes:  "Actually, we have a Realtor, but we didn't want to bother them on a Sunday!"  Ha...apparently you're chopped liver!

If you have someone great helping you, reward them.  Don't skip around using listing Realtors only trying to save a few dollars.  Don't suddenly ditch a great Realtor in a moment of open house weakness!

If you have a dud Realtor on the other hand, do not feel trapped.  There are many Realtor fish in the sea and some are far more effective than others!

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