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6
February
2012

The real truth behind being a Realtor.

So I have been a Realtor for over 10 years now, and to say I’ve seen more than my share of interesting situations or even been involved in them is just scratching the surface.

Just getting back from an out of state court situation with my ex, where he was able to use my own website and positive comments about the market against me…gave me the idea to use this same platform to at least get my thoughts out without objections or being interrupted. For those who have taken the time to actually get to know me, you know where my priorities have always been – in taking care of my boys.  You also know, there hasn’t been a judge or court that needed to tell me what my responsibilities are and what I should be doing to take care of my family.

In my own personal life, I have found that many times I go through a situation so that I can help guide, support or caution others.  I hope that if you are reading this, you get the point which was intended for you…as they say, “if the show fits, wear it.”

And for that no good ex, the reality of life is this – I have never had to say anything bad about you to persuade anyone to believe anything about you that they don’t understand by your own actions. Sadly, that includes your children.

Here goes:  what I say and write here is not necessarily the case for everyone – it is meant as a generalization with typical practices as I am aware.

A Realtor is not an employee of a company, we are independent contractors – with no benefits for health insurance, 401k, or otherwise. We are charged expenses whether or not we make a sale, which can include office fees, desk fees, or other associated fees. We also pay for our own marketing, advertising, promotion, continuing education, dues and anything else associated with operating our business.  When we get a listing, we are responsible for all costs associated with the marketing of that property and only “make that money back” if the property sells.   At the time a property sells, we earn a GROSS Commission, this is the total amount of the commission charged to the client and paid to our Broker.  The Broker then will take their percentage (which can be as much as 50% depending on the agreement) and or other fees OFF THE TOP and the balance is our NET Commission.  We receive a 1099 at the end of the year and the amount indicated is the Gross Commission earned but in no way reflects what we actually “made” for the year.  Tax laws apply to Realtors as they do any other business or person and our filings are typically subject to tighter audits than individuals or most other small businesses.  It has been said that a good rule of thumb, Realtors should see a 22% profit from their business.

What does that mean? Well where you see $20,000 as Gross Income you fail to see the expenses, stress and balancing act so many Realtors actually have to face…all for a resulting $4,400 “profit.”

Hard to feel sorry for someone who is unemployed, more likely by their own choosing because you found another way to work the system / have another source of income that can’t be used to calculate child support… But who is never the less going to get a check every week even though you don’t have to do any “work” to receive the money. Knowing what I do about you, that means you will sleep late everyday, watch sports or old movies on tv, have a few drinks that you hide from others, and then complain at the end of the day how tough it is to
find a job in today’s economy so you can get some sympathy from that blinder wearing wife of yours.  But don’t you worry! I will continue to take care of these kids no matter what the economy is doing and no matter what you do.

Wow, that was exhilarating.