How Are Real Estate Agents Paid

Real Estate agents are “Independent Contractors”; they are their own  business.  Real Estate agents, as independent contractors, are required to pay for all their own fees and expenses. These expenses include all educational requirements, all licensing requirements, they pay their own taxes, L&I, and health insurance.  As independent business person’s they also pay for all their supplies which includes; phone service, gas, rent, dues, computers, and all the other required equipment to run an efficient office. If the agent has assistants, they need to pay their salary and required governmental expenses (such as: taxes, L&I, Social Security, insurance etc.) as well.

When owners of a home decide to sell their home they contact a real estate professional. The owners of the home and real estate agent agree on a fee to market and sell their home. This fee is usually split equally between the listing company and the selling company. The selling company is a company that brings a buyer to the transaction.

In the state of Washington, the listing agent’s main responsibility is to sell the house for as much as possible. To accomplish this, the listing agent’s ensures that everything is done legally and ethically. A professional real estate agent knows all the rules that need to be followed when selling a home, keeping the seller out of legal trouble. Their next responsibility is to market the owner’s home to other agents and potential buyers. A well-run real estate listing team has many members. Some of the members include; the listing professional, an office support person, an advertising person, and an outside support person.

The listing professional is the team member who initially researches the property and determines the current market value of the house. They come to the seller’s home after researching the value of the home to present their findings and demonstrates what the team will do to aggressively market it. After signing the contract, the listing agent will sit down with the office manager and the advertising person, to outline an effective advertising plan. The listing agent will pay, in advance, for all advertising fees, which will include written publications, internet access fees, informational programs such as 800 numbers, sign production and distribution. All advertisements are reviewed on a weekly basis. The listing office will contact the sellers on a weekly basis giving them current updates.

The office support’s main job is to ensure that all paperwork is complete, communications are effective and all inquiries about the home are followed up on.

The advertising person is responsible to advertise the house in written documents and Internet. They also coordinate postcards, produce and send out flyers and follow up on any inquiries or questions from the homeowner.

The job of the outside support person is to photograph the house in such a way that it is appealing to buyers, ensure all signs are placed in the neighborhood and in the yard. Plus ensure all lead capture tools are working effectively.