Here’s a fantasy thought: “What if our teachers, doctors, or politicians only got paid AFTER they finished their service, to their client’s satisfaction?” And, the professional gets paid nothing until those they serve are satisfied with an acceptable conclusion. Can you imagine?
Abraham Lincoln said: “A lawyer’s time and advice are his stock in trade“. Their income is based on two ‘tools’ used to serve their clients: their time and advice (knowledge).
It seems many people don’t stop to consider how their real estate professional gets reimbursed for their time and knowledge. Perhaps, because the client is on an hourly wage or salary, they assume agents must have a similar revenue basis?
Your real estate agent typically receives no reimbursement for their expenses (gas, time, advertising, time, promotion, time, etc.) until several days AFTER their client’s escrow closes. If the sale does not close through him/her, the agent gets nothing for their ‘time and knowledge’.
Just imagine: At your job you don’t get paid until you completed all of the tasks. If there is no successful conclusion to your work, you get paid nothing. You might understand agent’s frustration when that happens to them.
Oh, and BUYERS, you typically pay nothing for your agent’s services – the seller does, through their contract with the listing agent. Make sure you have an experienced agent with a proven track record to represent you. They will “cost” you the same as a rookie agent will – zero.