How many times have you been told “You make a lot of money”. We have heard it time and time again, but does a REALTOR really make a lot of money? Let’s take a look.
We would say that the two most important questions on a home sellers mind is How much is my House worth? And the second most important question, however it usually takes a while to get to it is; How much do you charge to Sell my house?
These aren’t the only questions you will be asked, but for sure are the most important questions weighing on the minds of the Home seller. We think it’s important to breakdown the two questions to help better understand the answers to both.
We would like to tell you that it is a simple calculation, however it is not. It is based on the history of the market and not the future of the market. Even in a rapidly growing Real Estate Market the value of a home is based on the value of the homes that have recently sold in the past. That is not to say your house can’t be listed at a higher price because the market is trending up.
What is the definition of recently? If an appraisal is necessary for the sale of your home an appraiser typically will go back 6 months, however in a rapidly growing market, they may only go back 3 months in order to keep up with the rapid advancement. What’s important to note here is that it is subjective how far back an appraiser may go. Here is an example that happens more often than you might think. A home is in the process of being appraised, however there hasn’t been any “solds” in more than say 6 months or even a year in the neighborhood. Now in a rapidly advancing market, those comparatives would be more than a year old, and in most cases the evaluation of your home would end in a lower price evaluation because of it.
When it comes to determining the current market value of your home, a professional REALTOR is going to take their time in reviewing previously sold homes in your neighborhood and possibly a mile or two radius from your neighborhood if comparative homes are not readily available. They will also communicate this information to an appraiser and work with them to ensure the property is properly evaluated. Relying on a professional REALTOR who has the expertise of the area and knowledge of how an appraiser evaluates a home is a critical component to determining market valuation of your home. However a homes evaluation doesn’t stop there, it is also based on the REALTORS knowledge of the area, their knowledge of inventory on the market at any given time, and their ability to walk through your home and add up those little details that are not so easy to quantify.
So to answer the question, What is my House worth?, is not an easy answer. It is a complicated calculation. When you employ a professional REALTOR to determine your homes value there is significant work and insight that goes into determining a Home’s Value. All of the technical and intuitive skills of the REALTOR will guide them to determine what is the best possible price your house may sell at. This will help to position the value of your home with the appraiser when the time comes.
We greatly appreciate a home seller who asks us to discount our services, after all it shows that they are looking for the best deal possible and it allows us the opportunity to talk about the process of selling a home. There is nothing wrong with that. And when we tell them that we charge 3% of the sale price that may seem like a tremendous amount of money. But let’s look at how that commission is used.
Of the 3%, 3/4% goes to the Broker and Franchise Fees. These fees allow us to work as a REALTORS, it allows us to “hang” our licenses. Not only do they allow us to work, they also provide us with all the tools necessary to sell our clients home including legal support to verify that all the details of your home sale are correct and legal. This is so you don’t have to also hire a lawyer to protect yourself, essentially doubling your costs. As a professional REALTOR we have fiduciary responsibility to our client and we take it serious.
Then we have about 1% that goes to Marketing your home. What does that mean? For us Marketing does not end at putting a sign in your yard and putting your house in the local MLS. No, marketing your home is the most crucial part of ensuring that the highest number of people see your home. Marketing costs may include Professional Photography, Graphic Design, Promotional Ads in both Digital and Print formats, Print Marketing, Digital Marketing, Website syndication, National and International Syndication, Direct Mail targeting, Local REALTOR Tours, Video Marketing, Virtual Tour Marketing, Digital Magazines, Social Media Marketing and the latest in Mobile Technology Marketing.
That leaves about 1-1/4% for us. Once we back out the Transportation, Logistics, Continuing Education, Multiple Listing Service and Lock Box fees that leaves us with roughly 1% of the sales price of your home. Then 35-40% of that is paid to State and Federal Taxes. That is a fairly consistent breakdown of how that 3% your going to pay us to sell your house is utilized.
Now, understanding that if we were to discount our services, we still have Brokerage, Franchise Fees, State & Federal Taxes, Continuing Education and other bills to pay and food to buy just like everyone else, so the discount has to come from somewhere. And it will always come from Marketing. MARKETING YOUR HOME IS THE KEY TO SELLING YOUR HOME. Discounted services will hurt the ability of your REALTOR to sell your home.
When sitting down with our Client during the listing appointment, instead of asking us to discount our services, ask us how our marketing plan is going to help to sell your home. We are very proud of our marketing programs and the value they bring to our sellers and often times there isn’t enough attention paid to that part of the discussion.
So ask yourself, do you want to sell your home or simply list your home?
At Better Homes and Gardens Real Estate Sonoran Desert Lifestyles not only do we have ensure our Clients get the best Marketing plans out there. We also make sure that our Professional Agents know how to use these tools to succeed.
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Check your Skills here
Real Estate sales can be a challenging and rewarding career. There is a saying in Real Estate, your worth as much as your willing to work. So you can make as little or as much income as you can imagine all you have to do is put in the work. Sounds easy, but it’s not always easy. Having the right skill set is very important to your success. How do you know if you have the right skills? You take our Assessment Quiz. It will outline your skill set as it relates to a successful Real Estate Career. Where your strong skills will be reinforced and your areas where you might need a little help will be supported with training to help you succeed.
The way business is conducted in the real estate industry has certainly changed with the advent of the Internet and new technologies and consumers now know more about the home buying and selling process than ever before.
During this 25 minute interactive assessment, a moderator will guide you through a typical sales process as you interact with a young couple looking to purchase a home. This assessment will track the following key sales skills:
- Building Rapport and Acquiring Information – can you build a relationship and establish trust?
- Listening and Comprehension – can you consult and qualify your buyers?
- Managing the sales process – can you move the clients towards the right action at the right time and keep the sale moving?
- Closing Skills – can you close the sale and help your buyers find the right home?
Once you have completed the assessment, you will receive a personalized report outlining your skill set. Better Homes and Gardens Real Estate Sonoran Desert Lifestyles Broker/Owners can use this information to put in place the right training and coaching programs to help you to launch or grow an existing real estate business.
You may be tech savvy but in order to be successful in real estate sales there are still certain basic skills you need to have. Click Here to see if you have the sales skills necessary to grow a successful real estate business.
Tags: advent of the internet, Arizona Real Estate, assessment quiz, becoming a real estate broker, better homes and gardens, BHG Real Estate, business, Buying, Career Change, career in real estate, desert lifestyles, existing real estate, gardens real estate, Homes, marketing, New Agent, professional realtor, professional realtors, Real Estate, real estate agent, real estate career, real estate sales, REALTOR, Sales, Selling, Sonoran Desert Lifestyles, Success, veteran realtor, virtual clients
Here at Better Homes and Gardens Real Estate Sonoran Desert Lifestyles we believe in order for our Professional REALTOR’S to be successful they must have the tools to help them achieve their goals. Is it right to expect New and Veteran REALTOR’S to provide all the tools of success on their own, we don’t think so. It is our goal to provide them to our REALTORS at no cost or at least a very minimal cost. Success doesn’t just happen, it’s planned. With our New Greenhouse Business Development Center you can be successful from day one. A comprehensive Business Development Center specific to YOU.
Take a sneak peek at our New Greenhouse.
- Print Marketing Center
- Digital Marketing Center
- My Listings Marketing & Management Center
- Free REALTOR Websites
- Industry leading Contact Manager CRM with on-click Digital Marketing Integration.
- LeadRouter Lead Generation Tool with Contact Management integration.
- Proprietary PinPoint Database Marketing. Access more than 100 Million Consumers throughout the United States.
- Individualized Learning Resource & Training Center
- Social Media Masters Marketing Tools
- 100’s of Instructional, Consumer Video’s all linkable and shareable
These are just a few of the great tools and features that are available to our REALTORS. All you have to do to take advantage of these tools, is join Better Homes and Gardens Real Estate Sonoran Desert Lifestyles. Call or Email us today to set up a private showing of The Greenhouse and learn more about the Real Estate Industry from the Leaders, Better Homes and Gardens Real Estate Sonoran Desert Lifestyles.
Tags: Arizona Real Estate, becoming a real estate broker, better homes and gardens, BHG Real Estate, Buying, career, Career Change, career in real estate, customer inquiries, desert lifestyles, Digital, Homes, marketing, New Agent, professional realtor, professional realtors, Real Estate, real estate agent, real estate career, REALTOR, realtor.com, Sales, Selling, Sonoran Desert Lifestyles, Success, veteran realtor
As a Professional REALTOR, rewards are all around you. You’ll enjoy flexibility and the freedom to set your own goals and pace. Of course your income and success will be reflected in your effort.
Successful people in real estate are goal-oriented, persevering, self-motivated, ambitious, and able to work with a wide variety of personalities.
You have the potential for high earnings, status, autonomy, intellectual challenges, and the satisfaction of helping others.
You can choose to work for a small firm or large, one on the technological cutting edge, one that focuses on environmentally friendly housing, or any number of other specialties.
Some real estate agents go on to be brokers. With more experience, education, and upon passing an additional exam, becoming a real estate broker is the next step for many successful salespeople. Brokers can own their own businesses and build a team of successful agents who will also contribute to the broker’s success.
Working in real estate comes with a few challenges, too. To be financially successful, Professional REALTORS and brokers put in long hours and often work 15 hours a day and on weekends. They also typically don’t get paid until a property sells.
There can be long periods between commission checks. Also, when starting a real estate career, it can take a while to get up to speed and see those commissions start coming in.
It’s crucial to your success that you plan your business and choose a good school. One that will prepare you not only to pass the licensing exam, but that will also teach you what you need to know to succeed in the real world. Some schools focus on teaching you how to pass the multiple exams, while others also teach you how Real Estate really works. Click here for an easy to use Business Planning Tool
Prospecting is the single most crucial element in the business and presents the biggest challenge for most REALTORS.
Prospecting can be done in a number of ways:
- Contacting your sphere of influence
- Open houses
- Office inquiries
- Online techniques
- Handing out business cards
- And lots more!
The important thing to realize is that it’s not easy, but must be done consistently in order to have a successful real estate career.
Some other activities you could expect to do on a daily basis:
- Tour new listings
- Preview homes
- Staying updated on real estate-related laws and issues
- Conduct and attend open houses
- Spend “floor time” at the office
- Attend closings with your clients
- Maintain relationships with your sphere of influence
- Follow up with clients and customers
- Prepare contracts for purchase and presenting offers for buyers, and offers from others to your sellers
- Complete market evaluations
- Show homes to prospective buyers
- Prepare and present listing proposals and marketing plans
- Facilitate communication between all the parties involved in the transaction
Do some research on becoming an agent now by trying our Career Center Tools, click on the tabs above, where you can:
- Play the role of an agent.
- Interact with virtual clients interested in buying or selling property.
- See how you measure up to the top performers in the industry.
Tags: Arizona Real Estate, becoming a real estate broker, BHG Real Estate, Buying, Career Change, Homes, New Agent, professional realtor, professional realtors, Real Estate, real estate career, REALTOR, Sales, Selling, Sonoran Desert Lifestyles, Success
Perhaps more than any other profession, real estate is the domain of the motivated entrepreneur. Real Estate is led and dominated by people with talent, savvy, a commitment to personal service, and a need to succeed.
If doing things you enjoy each day and earning a great income while having control over your schedule and personal time equals a fabulous career to you, then you are in the right place. Our tools and experience are second to none and are designed for Agents who expect a high level of success. Explore the many tools on our site designed to help you make the right choices for your career.
Four Steps to Increase Your Success When Making a Career Change
- Take a Look in the Mirror: If you’ve decided that it’s time for a career change but aren’t sure what direction to go in, start with some self-reflection. Evaluate your values, skills, personality, and interests. Think of your ideal day at work. What activities and tasks would excite you?
- Match Them Up: Make a list of the professions that interest you and investigate them to see if they match up with the mirror test you gave yourself.
- Research: Go on interviews and seek out people who are successful in those professions that you identified. The best source of information will come from people who have firsthand knowledge of the industry.
- Develop a Plan: Once you’ve decided on your new career direction, you’ll need to develop a plan toward entering that profession. Write out exactly what you need to do, estimate the time frame for accomplishing these steps, and identify the related costs.
Do some research on becoming an agent now by trying our Career Center Tools, you’ll find them in the tabs above, where you can:
- Play the role of an agent.
- Interact with virtual clients interested in buying or selling property.
- See how you measure up to the top performers in the industry.