I Write The Words

Real Estate Commission are not fixed by law.  They are based on the sales price of the home.

I don’t think the commissions make any sense.  It is not easier to sell a home in a better area than a worse area.  Yet typically the home in the better part of town will sell faster, will sell . . . → Read More: How Do Real Estate Commissions Make Sense?

The Value of a Real Estate Agent’s Expertise

Expertise is defined in the online Merriam-Webster Dictionary as:
1. expert : expert opinion or commentary
2 : the skill of an expert

Expert is defined as:

Main Entry: 1ex·pert
1 obsolete : EXPERIENCED
2 : having, involving, or displaying special skill or knowledge derived from training or experience
synonym see PROFICIENT

Looks like we need . . . → Read More: A Real Estate Agent’s Expertise

In general, a Real Estate Agent’s income is based solely on their commissions.  Other models have been tried and are being tried, but overall this is the standard way that agents are paid.

Agents pay their own start up expenses for equipment, memberships, and supplies prior to having any income.  You need a certain amount of money . . . → Read More: Real Estate Commissions

The conflict comes when an agent believes the sales price of a home should be less than the asking price and, probably, less than the seller believes it should be.

The asking price that an agent expects for your home does change over time.  Any price is a guess; maybe an educated guess, and a guess that . . . → Read More: Negotiations: Part 2 – Negotiating the Sale

In reality, the agent starts negotiating the deal before the seller has a buyer or the buyer finds a house.

The agent is initially negotiating to represent a buyer or seller.  She is looking for a commitment from the client and loyalty.  For the buyer, she is at risk during the entire home search.  If the buyer . . . → Read More: The Negotiations – Part 1

How do you get information about the value of the home you are preparing to sell or purchase?  Your agent creates a Comparative Market Analysis (CMA) for you.  The problem with a CMA is that the parameters chosen are determined by the agent and individual properties can be excluded or included by the agent.
In other words, . . . → Read More: Things the Client Doesn’t See in a Real Estate Transaction: The CMA

The real estate agents owes “A fiduciary duty of utmost care, integrity, honesty and loyalty” in dealings with the Seller or Buyer in a transaction (CAR Form: Disclosure Regarding Real Estate Agent Relationships).  This is the disclosure form that all parties sign when represented by a real estate agent.  In California, this duty is owed whether . . . → Read More: Things the Client Doesn’t See in a Real Estate Transaction: Representation

Here’s the bottom line:

New agents come into the field convinced that it’s an easy way to earn money and that deals will simply fall into their laps.

Many new agents are not mentored or trained on how to sell real estate or complete the necessary contractual forms.  If you pass the DRE test, you can work as . . . → Read More: Recap About Real Estate and Real Estate Agents

The current status quo is based on the numbers of Realtors®.  Real Estate Agents become Realtors® in order to have access to the lockbox system, the contracts and forms used, educational classes, legal resource, and more.

The National Association of Realtors®, the California Association of Realtors® and the local Association of Realtors® all base the majority of . . . → Read More: The Status Quo in Real Estate

How do agents get paid?  Agents are independent contractors.  In general, they are not eligible for retirement benefits, health plans or vacation pay from the company they work for or contract with.  An agent negotiates their split with the company.  This is the portion of the commission the agent gets to keep in each transaction.  For . . . → Read More: How Real Estate Agents Get Paid